Pakistan agri-food system: Assessment report

Despite agriculture’s central role in Pakistan’s economic growth, the sector continues to struggle with decades old structural issues and its performance is weak. Spending on subsidies for water, fertilizer, electricity, and wheat procurement reached US$1.25 billion in Punjab alone, far more than th...

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Autores principales: Davies, Stephen, Ejaz, Amna
Formato: Informe técnico
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2025
Materias:
Acceso en línea:https://hdl.handle.net/10568/179396
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author Davies, Stephen
Ejaz, Amna
author_browse Davies, Stephen
Ejaz, Amna
author_facet Davies, Stephen
Ejaz, Amna
author_sort Davies, Stephen
collection Repository of Agricultural Research Outputs (CGSpace)
description Despite agriculture’s central role in Pakistan’s economic growth, the sector continues to struggle with decades old structural issues and its performance is weak. Spending on subsidies for water, fertilizer, electricity, and wheat procurement reached US$1.25 billion in Punjab alone, far more than the funding provided for research and development. Inefficient and fragmented value chains, high post-harvest losses and transport costs, limited access to formal markets, dependence on subsidies, and underdeveloped storage and processing infrastructure are among the significant problems affecting agriculture. The deep-rooted traditional system, characterized by reliance on commission agents and the weak implementation of market reforms both restrict farmers’ bargaining power, especially for smallholder farmers. Moreover, although on average the country’s population is food secure in terms of caloric sufficiency, limited dietary diversity and inadequate access to nutritious foods cause widespread malnutrition. Regardless of these issues, some positive changes have been introduced. The recent rollback of wheat procurement and the minimum support price policy presents both challenges and opportunities as long-sought reconsideration of crop choices and promotion of higher value or climate-resilient alternative crops now seems possible. Market reform under the Punjab Agriculture Marketing Regulatory Authority (PAMRA), created as an initiative of the World Bank’s SMART program, presents another opportunity, particularly as the notified areas for central markets have been dropped, creating an opening for more competition. Although implementation remains slow, the Authority has begun paving the way for market modernization. However, this transition must be supported by improvements in market access, development of an improved and well-managed storage network, and well-functioning price mechanisms to protect food security and farmer incomes. In addition to the marketing, value addition, and productivity challenges identified above, climate change will also create constraints and challenges for agri-food development and transformation in Pakistan. The sector faces likely increases in extreme events, particularly flooding, as well as longer-run chronic effects of heat on yields and labor productivity in agriculture, rising salinity and land drying, and increasing crop water requirements even as other demands for water increase.
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spelling CGSpace1793962026-01-06T02:15:00Z Pakistan agri-food system: Assessment report Davies, Stephen Ejaz, Amna agrifood systems value chains computable general equilibrium models models stakeholders Despite agriculture’s central role in Pakistan’s economic growth, the sector continues to struggle with decades old structural issues and its performance is weak. Spending on subsidies for water, fertilizer, electricity, and wheat procurement reached US$1.25 billion in Punjab alone, far more than the funding provided for research and development. Inefficient and fragmented value chains, high post-harvest losses and transport costs, limited access to formal markets, dependence on subsidies, and underdeveloped storage and processing infrastructure are among the significant problems affecting agriculture. The deep-rooted traditional system, characterized by reliance on commission agents and the weak implementation of market reforms both restrict farmers’ bargaining power, especially for smallholder farmers. Moreover, although on average the country’s population is food secure in terms of caloric sufficiency, limited dietary diversity and inadequate access to nutritious foods cause widespread malnutrition. Regardless of these issues, some positive changes have been introduced. The recent rollback of wheat procurement and the minimum support price policy presents both challenges and opportunities as long-sought reconsideration of crop choices and promotion of higher value or climate-resilient alternative crops now seems possible. Market reform under the Punjab Agriculture Marketing Regulatory Authority (PAMRA), created as an initiative of the World Bank’s SMART program, presents another opportunity, particularly as the notified areas for central markets have been dropped, creating an opening for more competition. Although implementation remains slow, the Authority has begun paving the way for market modernization. However, this transition must be supported by improvements in market access, development of an improved and well-managed storage network, and well-functioning price mechanisms to protect food security and farmer incomes. In addition to the marketing, value addition, and productivity challenges identified above, climate change will also create constraints and challenges for agri-food development and transformation in Pakistan. The sector faces likely increases in extreme events, particularly flooding, as well as longer-run chronic effects of heat on yields and labor productivity in agriculture, rising salinity and land drying, and increasing crop water requirements even as other demands for water increase. 2025-12-31 2026-01-05T16:08:31Z 2026-01-05T16:08:31Z Report https://hdl.handle.net/10568/179396 en Open Access application/pdf International Food Policy Research Institute Davies, Stephen; and Ejaz, Amna. 2025. Pakistan agri-food system: Assessment report. Washington, DC: International Food Policy Research Institute. https://hdl.handle.net/10568/179396
spellingShingle agrifood systems
value chains
computable general equilibrium models
models
stakeholders
Davies, Stephen
Ejaz, Amna
Pakistan agri-food system: Assessment report
title Pakistan agri-food system: Assessment report
title_full Pakistan agri-food system: Assessment report
title_fullStr Pakistan agri-food system: Assessment report
title_full_unstemmed Pakistan agri-food system: Assessment report
title_short Pakistan agri-food system: Assessment report
title_sort pakistan agri food system assessment report
topic agrifood systems
value chains
computable general equilibrium models
models
stakeholders
url https://hdl.handle.net/10568/179396
work_keys_str_mv AT daviesstephen pakistanagrifoodsystemassessmentreport
AT ejazamna pakistanagrifoodsystemassessmentreport