KARACHI: Saleem Ullah, Deputy Governor of the State Bank of Pakistan (SBP), emphasized on Wednesday that subsidies should be directed only towards vulnerable segments to ensure effective resource allocation.
Speaking at the Pakistan Agriculture Coalition’s Agri Conference and Expo at the Expo Centre, he advocated for a transition towards a market-driven agricultural sector, arguing that reduced government intervention would allow natural market adjustments and foster economic growth.
“Rather than relying on support price mechanisms, we should let the market develop independently. Sectors that function without excessive government involvement tend to respond more efficiently to market dynamics,” he stated.
Olivier Durand, Lead Agriculture Specialist at the World Bank, highlighted the disparity in public support, noting that large farmers benefit disproportionately, whereas targeted assistance for small farmers could bridge the productivity gap.
Chief Executive of the Pakistan Agriculture Coalition (PAC), Kazim Saeed, pointed out that shifting global economic dynamics present an opportunity for Pakistan’s agriculture sector. “The economic structures built in the 1960s and 1970s had served their purpose by the 1990s. To revitalize our economy, we must accelerate private-sector-driven reforms and investments,” he asserted.
Special Assistant to the Chief Minister of Sindh on Investment and Public-Private Partnerships, Qasim Naveed Qamar, detailed various government programs, including subsidized tractors, drip irrigation systems, and other agricultural machinery, aimed at supporting farmers. However, he stressed the need for strategic investments in precision agriculture, sustainable irrigation, and agri-tech innovations to enhance productivity and profitability.
Matteo Lagatti, Senior Agro-Economist at FGM International, highlighted that corporate farming remains underdeveloped in Pakistan, with only 4% (840,000 hectares) of cultivable land allocated to it. Currently, 17 companies are investing in corporate and contract farming, covering 26,000 hectares, and FGM projects this figure to expand to 80,000 hectares within a year. However, a lack of a comprehensive sector policy and conflicts over water allocation continue to hinder growth.
Maria Saleem from Fatima Group revealed that their organization is part of a major corporate farming initiative covering 50,000 acres. She stressed that with Pakistan’s growing population driving higher food demand, corporate farming is a key solution to meeting future needs.
