Policy delays, not technology, are dragging Pakistan agriculture, OICCI says

Pakistan’s agriculture sector is losing ground not because the country lacks technology or investment, but because policies are being delayed, applied unevenly or left unimplemented, according to a new report from the Overseas Investors Chamber of Commerce and Industry (OICCI). In its report, Seeds of Growth, the chamber argues that weak execution has become one of the biggest barriers holding back farm output in a sector that still contributes about 23% to GDP and employs 37% of the workforce. The report, cited by Dawn, says the costs are already visible in cotton, where lower domestic production is forcing the economy to absorb an estimated $2-3 billion a year in extra imports and lost export earnings. The sharpest concern is cotton. The report says output has fallen from around 14 million bales at its peak to an estimated 6.85 million bales in FY26, leaving production 34% below the government’s target of 10 million bales. OICCI links the decline to a mix of climate shocks, pest attacks, poor seed quality and a blanket ban on some pesticide ingredients that was introduced without what it describes as a science-based transition plan. That decline matters well beyond the farm. Pakistan’s textile industry depends heavily on local cotton and generates about 60% of export earnings, so weaker lint production increases pressure on imports and foreign exchange reserves. The report says lifting output to 8-9 million bales would ease some of that strain, though it does not suggest that would fully restore the sector to earlier levels. The same report says maize is facing a different but related problem: the gap is not mainly about yields, but about policy follow-through. OICCI points out that hybrid seed has already tripled per-acre productivity over the last three decades. Even so, the National Biotechnology Policy, approved by the federal cabinet last month, has yet to be implemented. According to the chamber, that delay is slowing the introduction of biotech corn hybrids that could support a potential $1 billion in maize grain and silage exports. The central argument is straightforward: Pakistan already has much of the know-how needed to improve output, but farmers and investors are not getting a stable policy environment. In the report’s telling, that leaves the sector exposed to changing rules, slow approvals and decisions that are not backed by a clear transition path. There is an important caveat. The feed details available from Dawn do not indicate how the government has responded to the report, whether the claims on cotton and maize have been independently verified in full, or what timeline exists for implementing the biotechnology policy. Those questions matter, because agricultural output is shaped by weather, input costs, pest control, seed access and trade policy all at once. Still, the report adds to a familiar debate in Pakistan: whether the main obstacle to higher farm productivity is a shortage of innovation, or the difficulty of turning policy into results. For growers, manufacturers and exporters, the answer may determine not only next season’s harvest, but also how much the economy keeps spending to make up for what local fields can no longer supply.

Source: Dawn Business - https://www.dawn.com/news/2017650/policy-delays-cost-agriculture-billions-oicci