Experts urge the exploitation of barren lands for agriculture

KARACHI:

Business leaders and experts have called for leveraging over 50% of Pakistan’s unused and barren land for agriculture to boost the country’s exports. Speaking at the AgriTech International Trade and Investment Conference on the second day of the three-day 25th ITCN Asia 2024 at the Karachi Export Centre, they highlighted the immense potential of Pakistan’s agriculture sector.

The event, organized by Ecommerce Gateway Pakistan Pvt Ltd, attracted significant attention from industry leaders. Mohammad Atif Hanif, Managing Director of Al-Barka Bank Pakistan Limited, highlighted the huge opportunity for Pakistan’s agriculture sector. He explained that the country currently feeds 250 million people and exports agricultural products worth $8 million. However, the potential remains much greater.

“With a yield of 50% per acre in almost every crop, Pakistan can significantly increase its agricultural output. Every 10% increase in yield could enable us to feed another nation, proving our huge export potential,” observed Hanif.

He also highlighted the challenges of financial inclusion in rural areas, noting that 100 million adults in Pakistan do not have bank accounts, with 75% of them engaged in agriculture. Out of this huge unbanked population, only 2.5 million are lending customers in the agricultural sector.

Hanif pointed to success stories from other countries, such as Ecuador, where corporate investment in shrimp farming turned the nation into the world’s largest shrimp exporter within a decade. Similarly, some Pakistani textile companies have started investing in shrimp farming, taking advantage of the country’s 1,000 km coastline. These efforts are expected to yield significant results in the near future as Pakistan embarks on corporate farming initiatives.

In addition, Hanif discussed the Halal food industry, which has reached a global market size of $1 trillion. Pakistan’s Halal food sector has already crossed $500 million in exports, offering a lucrative opportunity for the banking, agriculture and corporate sectors. He also identified the olive sector as a promising sector for development. Spain currently produces 40% of the world’s olives, but Pakistan has the potential to produce 1.5 times more than Spain on its underutilized arid lands.

Zubair Motiwala, Managing Director of Trade Development Authority of Pakistan (TDAP) and Chairman of Businessmen Group (BMG), outlined his vision for increasing the country’s exports. He noted that Pakistan’s main export sector, textiles, accounted for 70% of the country’s exports. But he pointed out that other challenges, such as high utility costs and rising interest rates, continue to hinder business growth.

Motiwala emphasized the importance of value-added agricultural products in boosting exports. “We have 54 million hectares of arable land, yet we use less than 50% of it. We need to expand both vertically and horizontally,” he said. The BMG president stressed the need for mechanized agriculture, improved seed development and better communication from farms to markets. He highlighted the potential for fine packaging of crops such as maize and rice, which could significantly increase their export value.

Motiwala also noted that value-added agricultural products could fetch prices up to seven times higher than raw products, while also creating jobs in the sector.

Federation of Pakistan Chamber of Commerce and Industry (FPCCI) Senior Vice President Saquib Fayyaz Magoon shared optimistic data showing that agricultural technology had led to a 6.25% growth in the sector in 2023-2024, with crop growth at 11 .03%. He stressed that these figures only mark the beginning of Pakistan’s agricultural future.