THAT the country’s exports of raw food rose by 37pc in the last financial year over the previous one is a welcome development for Pakistan’s wobbly economy, which is rapidly being pulled down by an acute shortage of foreign exchange to pay import bills. Food exports jumped from $5.8bn to $8bn in the first 11 months of the last fiscal, the country’s top trade development body TDAP reported. The largest increase is noted in the value of rice exports on the back of India’s ban on its outbound basmati shipments to protect its consumers. Other major food exports include raw meat, maize, spices and fruit. While the increased food exports are beneficial for the economy and our weakened balance-of-payments position, they have also led to fears of domestic shortage of some items and the knock-on impact on food prices in Pakistan. These concerns are not without reason. The majority of consumers here have been struggling to survive a consistent spike in the cost of living, especially with regard to food, for over two years now. Even though the pace of inflation has slowed down in the last few months, the price of food and other essentials remains beyond the reach of ordinary citizens.

Pakistan cannot hope to grow its economy and exports sustainably without a major boost to agricultural productivity and rural incomes. It is not incorrect to say that the agricultural economy, which employs almost 60pc of Pakistan’s workforce and significantly contributes to GDP, is at a turning point. The sector’s enormous potential remains unexplored. Besides, it remains vulnerable to extreme weather shocks due to climate change. The considerable productivity gap means that agriculture can make huge contributions to the national economy by boosting food and other crop exports, and eliminating the rampant rural poverty in the country. But that is almost impossible without private sector participation and investment in research, seed systems, and mechanisation. However, corporate investments in agriculture will be hard to attract unless the political leadership and policymakers seize the opportunity through focusing on substantive policy changes and infrastructure development. Corporate participation in agriculture is the key to managing the challenges within this sector and tapping its true potential, not just for boosting farm exports but also eliminating domestic supply gaps to stabilise food prices over longer periods.

Published in Dawn, July 4th, 2024