Agriculture offers a blooming investment opportunity in Pakistan
October 21, 2023
Published in: The Nation
ISLAMABAD-In the pursuit of economic growth and sustainable development, Pakistan’s agriculture sector emerges as a compelling investment opportunity, Muhammad Hanif, senior scientific officer at the National Agricultural Research Centre (NARC), said. “As the country grapples with various economic challenges, harnessing the country’s agricultural potential can prove a vital catalyst for progress.
“Agriculture has long been a cornerstone of Pakistan’s economy, providing livelihood to a significant portion of the population and contributing substantially to the GDP. It’s a sector deeply intertwined with the nation’s cultural fabric and plays a pivotal role in ensuring food security for millions,” he said. He believes that focusing on this sector is not only a strategic move but also a timely one. The policymakers have realized that agriculture holds the key to addressing a lot of pressing issues. “One of the most promising initiatives in this regard is the Green Pakistan Initiative (GPI), operating under the newly established Special Investment Facilitation Council (SIFC). This endeavor aims to stimulate investment in the agriculture sector and inject fresh vitality into an industry that was underutilized in the past,” he told WealthPK.
“Investing in modern farming equipment and techniques can significantly increase crop yields and profitability. For example, precision agriculture, which uses technology to optimize crop production, can revolutionize farming in Pakistan. Similarly, investments in irrigation infrastructure can mitigate water scarcity issues that often plague farmers.
“Such investments will not only boost the economy but also lead to higher incomes for farmers, more affordable food for consumers, and job creation in related industries such as food processing and transportation. Moreover, transforming the agricultural sector can significantly impact the livelihoods of millions of Pakistanis,” said the NARC scientific officer. According to WealthPK research, the objective of GPI is to attract substantial investment in agriculture, ultimately fostering its growth and modernization. As the government targets a substantial influx of $50 billion in investment over the next five years, even a fraction of this commitment can have a significant ripple effect on the economy. Pakistan has a total area of 79.6 million hectares out of which the cropped area is 23 million while forests cover 4.6 million hectares. The agriculture sector’s annual income last year was USD38 billion (23 percent of GDP).
Pakistan is the 15th largest agricultural producer globally and among the world’s top 10 producers of wheat, cotton, sugarcane, mango, dates, kinnow oranges, and rice.
The prospects in the agriculture sector are diverse and promising. Despite being a global agricultural producer, Pakistan has faced challenges, including the need to import wheat in recent years due to various factors such as climate change and water scarcity. These challenges underline the urgency of investing in sustainable agricultural practices and modernization.
