By Mahira Gichki & Abdul Rafay Shaikh
The importance of agriculture for any country cannot be overstated, as it serves as the backbone of a nation’s food security, providing the primary source of food and nutrition for its citizens. A strong agricultural sector ensures a stable food supply, reduces reliance on imports, and lays the foundation for economic growth. Moreover, agriculture plays a critical role in poverty reduction, as a significant proportion of the population in many countries relies on it for their livelihood. In Pakistan, agriculture remains a vital sector, contributing significantly to the country’s GDP and workforce expansion. It accounts for around 24 percent of Pakistan’s GDP and employs nearly 37.4 percent of the workforce. The sector is essential for ensuring food security, reducing poverty, and supporting economic progress.
While Pakistan’s agricultural sector holds the potential to drive development, it demands strategic investments and sustained support. However, the fiscal budget for 2024–25 has failed to address the vulnerabilities of the agro-food production sector, which accounts for 21 percent of the national GDP. The sector’s stake in the fiscal plan is insufficient, with the aggregate budget expenditure for agriculture being approximately Rs5 billion out of the Rs1.8 trillion national budget. This meagre allocation has raised concerns among farmers and professionals, who feel that the government’s budgetary apportionment is inadequate to meet their basic agricultural inputs. The distinction between the 2023–24 and 2024–25 funding plans for agriculture is substantial. The 2023–24 budget showed potential, with the agro-sector achieving 6.25 percent expansion, driven by boosted agricultural loan disbursement and improved assistance.
However, the 2024–25 budget indicates a turning point, reducing critical subsidies and financial assistance. The reduction in budget allocation for markup allowance and risk mitigation programs for agricultural machinery, the Prime Minister’s Youth Business and Agriculture Loan Scheme, and the Prime Minister’s Kissan Package funding has raised concerns about the government’s focus on the sector. The 2024–25 budget’s neglect of the agricultural sector poses a significant risk to the country, as the cuts to subsidies, credit, and support for inputs may lead to decreased crop production, resulting in food shortages, higher prices, and exacerbated hunger among the poor. Experts caution that the budget allocation for agriculture is woefully inadequate, reflecting misplaced government priorities.
Furthermore, farmers are grappling with increased production costs due to reduced subsidy allocations and increased taxation on essential inputs like energy and fertilizers. Small-scale farmers, who form the backbone of Pakistan’s agriculture, are particularly affected, with many forced to reduce agricultural planting or discontinue practices altogether due to unsustainable costs. The Kissan Scheme’s allocation of Rs 5 billion is widely regarded as a token gesture, lacking meaningful fiscal support and instead appearing as a primarily political move. The budget for 2024–25 highlights several key areas that require urgent attention and improvement in the 2025–26 fiscal plan, particularly in relation to agriculture in Pakistan. One major concern is the meagre allocation of Rs5 billion for agriculture out of a total budget of Rs1.8 trillion, which is grossly inadequate to meet the sector’s needs.
Furthermore, the reduction in subsidies and financial assistance for farmers, including the Prime Minister’s Kissan Package and the Youth Business and Agriculture Loan Scheme, has increased production costs and hindered agricultural growth. Additionally, the Kissan Scheme’s allocation is widely viewed as unsustainable and primarily a political move, rather than meaningful fiscal support. The budget for 2025–26 should prioritize an increase in the allocation for agriculture, the restoration of subsidies, and the provision of easy loans and credit facilities to small-scale farmers. Moreover, investment in modern farming tools and techniques, such as precision agriculture and drip irrigation, as well as a stronger emphasis on consultation with farmer advocates during budget planning, could help boost crop yields, reduce waste, and stimulate economic growth in the agricultural sector.
By addressing these issues, the government can promote sustainable economic development, enhance food security, and support the livelihoods of millions of Pakistanis who rely on agriculture. It is also recommended that steps be taken to strengthen agriculture-led economic growth by increasing the agricultural budget to at least 10 percent of the national expenditure. Restoring subsidies on essential inputs, improving access to affordable credit, and introducing modern farming innovations can together ensure a more resilient and productive agricultural economy. Furthermore, involving farmers and sector experts in budget planning will help align policy with on-the-ground realities, making agricultural reform more effective and equitable.
The fate of Pakistan’s agriculture sector hangs precariously in the balance, and the decision ultimately rests with the country’s leaders. As farmers poignantly ask, “We feed the nation, but who feeds us?” The answer to that question will be crucial in determining the future of farming in Pakistan. Will the government prioritize the needs of its farmers, providing them with the necessary support and resources to thrive, or will the sector continue to struggle, leading to food insecurity, economic instability and widespread poverty? The outcome will not only affect the lives of millions of farmers and their families but also shape the future of Pakistan’s economy and its ability to ensure food security. The leaders’ decision will mark a defining moment in the country’s history, determining whether agriculture remains a vital and thriving sector or becomes a mere relic of the past.
(Both authors are students of BSS-IV, Department of H&SS, Bahria University Karachi Campus, and can be reached at news@metro-morning.com)
