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LAHORE– Pakistan’s agricultural exports have suffered a sharp 38% decline, dropping to $1.95 billion from July to November this year, compared to $3.15 billion in the same period last year. The slump underscores deepening challenges in the sector, which is pivotal to the nation’s economy and food security, with rice shipments alone plummeting to $769 million from $1.5 billion.
The downturn is largely attributed to stagnating per-acre yields for key crops—wheat, rice, and cotton—which have fallen over the past two years. Limited investment in research and development has exacerbated the issue, leaving farmers ill-equipped to boost productivity amid volatile weather and outdated farming techniques. Compounding these production hurdles are rampant smuggling, hoarding practices, and a patchwork of inconsistent government policies that have eroded farmer confidence and market stability.
Agriculture’s woes ripple beyond exports. Pakistan, a traditional breadbasket in South Asia, now shells out approximately $6 billion annually on food imports, heightening vulnerabilities to global price shocks and supply disruptions. This import dependency poses a stark threat to national food security, particularly as domestic output fails to keep pace with a growing population.
The sector’s struggles also imperil broader economic goals. With textiles—largely reliant on cotton—accounting for about 60% of total exports, the decline in cotton production and quality is throttling value-added manufacturing and export diversification efforts. High energy costs and production expenses further squeeze margins, making Pakistani produce less competitive on the global stage.
In a glimmer of hope, Bangladesh has greenlit the import of 50,000 metric tons of rice from Pakistan, signaling potential demand recovery in regional markets. However, experts warn that without urgent reforms—such as ramped-up R&D funding, streamlined policies, and anti-smuggling measures—the sector risks deeper contraction, potentially destabilizing the rupee and fueling inflation nationwide.
Government initiatives, including working groups with business input, aim to address these root causes, but stakeholders emphasize the need for swift, tangible action to revive agricultural momentum.
