KARACHI, May 5: Pakistan, a predominantly agrarian country, is still struggling to achieve food autarky and provide a decent living to its rural population. A recent study suggests changes in the cropping pattern in Pakistan to achieve better returns from rural economy.

The State of Pakistan’s Competitiveness Report by Competitive Support Fund (CFS) suggests a few reforms in the agriculture sector, including shifting of production structure toward rice and cotton, while ensuring a moderate growth in wheat production in Punjab.

Rural power structure, policy failures, low credit access, mismanagement, weak market operations, low per acre yield with a host of other related problems plague the sector that continue to perform much below its actual potential.

The aforementioned report emphasises on government investment in irrigation, water management and agriculture research. An important area for increasing the competitiveness of the agricultural sector is the reform of wholesale markets. An efficient marketing system is a pre-requisite for the agricultural diversification that forms an important plank of the development strategy.

The current Pakistan Economic Survey admits: “Agriculture and particularly its crop sector could not perform up to the expectation, especially when major crops registered a 3.6 per cent contraction in growth.

Livestock, a major component of agriculture, exhibited strong showing and pulled the overall growth in agriculture to 2.5 per cent as against the target of 4.2 per cent. Livestock has been the only saving grace as far as the performance of agriculture is concerned this year.

The State of Pakistan’s Competitiveness Report of the Competitiveness Support Fund (CSF) and the World Economic Forum in its annual Global Competitiveness Report has identified improvements of the agriculture sector in Pakistan.

“Pakistan must update its data on all the agriculture segments indicators and provide it to the international sources,” this was stated by Arthur Bayhan, CEO of the CSF. The CSF delegation was making a special presentation on Friday to the ministry of food, agriculture and livestock (Minfal) as a part of exercise in which the other relevant ministries will also be visited.

In the meeting the CEO briefed the ministry on the strengths and weaknesses of the global indicators related to the food, agriculture and livestock of the Global Competitiveness Report. He explained the rationale behind the indicators and pointed out that the data used for these indicators is not up-to-date, says a press release of CSF.

Mr Bayhan said that the Minfal has a role to play in boosting the productivity of farmers and enhancing the competitiveness of Pakistan’s agricultural sector and food industry. This can be done by connecting agricultural research more closely to the needs of the farmers and the food industry.

The benefits will accrue to both producers in terms of efficiencies and to consumers in terms of lower prices and better quality. Assisting farmers to migrate from low-value products to high-value products will also assist in improving rural prosperity.

Mr Ismail Qureshi, secretary MINFAL informed the CSF delegation that Pakistan is one of the unique countries in the world, which provides negative subsidy to the agriculture sector in view of the WTO. He further pointed out that the major difficulties for agriculture are the tariff and trade barriers, stopping Pakistan’s agribusiness to compete in the international market.

Qureshi also suggested that the ministry of agriculture should work closely with CSF on food safety and standards, fisheries, horticulture and feed side for the livestock. He also urged CSF to establish formal cooperation with the ministry.

Mr Qureshi told the meeting that Pakistan’s future lies in agribusiness and “we should not only add value but create value as well.” He also suggested that the Minfal and CSF should work together on food processing, fisheries, horticulture, meat processing and specifically on the feed side for the livestock.

The meeting chaired by secretary Minfal was attended by several high ranking officers. CSF also provides technical assistance and co-financing for initiatives related to entrepreneurship, business incubators and private-sector-led initiatives with research institutes and universities that contribute to creating a knowledge-driven economy.