Agriculture Sector of Pakistan

Significance

Contributes ~23% of GDP, employs ~37% of labor force — largest employer despite declining GDP share over decades
Backbone of exports — textiles (cotton-based) still ~55-60% of export earnings
Major crops: wheat (staple, food security), cotton ("white gold", textile industry input), rice (Basmati export), sugarcane

Low productivity/yields per acre vs regional peers (India, Bangladesh) due to outdated techniques, poor seed quality
Water mismanagement — flood irrigation wastes ~60% of water; canal system silted, inefficient
Fragmented landholdings — majority farmers are smallholders (<5 acres), can't achieve economies of scale
Feudal/tenancy structure in Sindh & parts of Punjab — discourages investment by tenant farmers
Climate shocks — 2022 floods devastated cotton & rice crops; heatwaves affecting wheat yields
Weak agri-credit access for small farmers; input costs (fertilizer, seed, diesel) rising faster than support prices
Post-harvest losses — poor storage/cold chain infrastructure, especially for perishables

Minimum Support Price (MSP) mechanism for wheat — often criticized as poorly targeted, benefits large farmers/middlemen
Kissan Package schemes (subsidized credit, tractors)
Provincial agri-extension services (post-18th Amendment, agriculture is provincial subject)
CPEC agriculture cooperation — proposed but underdeveloped relative to infrastructure/energy components