Prime Minister Shehbaz Sharif on Wednesday reaffirmed the government’s commitment to revitalizing Pakistan’s ailing agriculture sector by lowering taxes on agricultural inputs and encouraging investment in agritech.
Chairing a review meeting, the prime minister emphasized that agriculture is the backbone of the national economy and that sustainable reforms in the sector would help stimulate broader economic growth.
A statement from the Prime Minister’s Office (PMO) quoted PM Shehbaz as saying that agricultural reforms would lead to higher per-acre yields and reduced production costs.
He recommended a phased reduction in taxes on agricultural machinery and equipment to accelerate farm mechanisation. He also stressed the importance of enhancing storage facilities for agricultural produce.
The prime minister called on provincial governments to propose new development projects and allocate funding to support agricultural advancement.
He noted that no new taxes had been levied on fertilisers or agricultural chemicals in the upcoming budget, a move aimed at supporting the sector.
PM Shehbaz expressed hope that Pakistani students currently studying agriculture in China under scholarship programs would return to contribute meaningfully to the sector’s development, especially as future entrepreneurs.
During the session, proposals were presented to improve agricultural productivity, infrastructure, and access to credit for farmers.
Officials highlighted the National Agriculture Innovation and Growth Action Plan, which aims to raise farmer incomes, boost yields, and drive strategic reforms.
It was also noted that by adding value to agricultural products, Pakistan could increase exports and earn vital foreign exchange.
The meeting was attended by Federal Minister for Food Security Rana Tanveer Hussain, Federal Minister for Climate Change Dr. Musaddiq Masood Malik, PM’s Chief Coordinators for Agriculture Musharraf Zaidi and Ahmed Umair, along with key private sector stakeholders and senior government officials.
Frequently Asked Questions (FAQs) and Concepts
What is the National Agriculture Innovation and Growth Action Plan?
This is a 2025 policy initiative focused on transforming Pakistan’s agriculture sector by increasing farm incomes, boosting per-acre productivity, and enabling exports. It includes reforms such as digital farming, mechanisation, infrastructure development, and easy credit access. The plan also encourages public-private partnerships and research-led development.
What is agritech investment and why is the government promoting it?
Agritech involves using technology—such as drones, AI, and precision farming—to improve agricultural efficiency. In 2025, Pakistan is prioritising agritech to overcome outdated farming practices, water shortages, and low yields. Encouraging local and foreign investment in agritech is seen as a long-term solution to modernising the sector.
Why are taxes on agricultural machinery being reduced?
The government in 2025 is proposing to gradually lower taxes on tractors, harvesters, and irrigation tools to promote mechanisation. Reduced machinery costs will help small and medium farmers shift from manual labor to modern equipment, improving output and reducing time and labor costs. It is also seen as a way to attract youth into farming.
How is the 2025-26 federal budget supporting agriculture?
Pakistan’s 2025-26 federal budget includes several agriculture-friendly policies such as no new taxes on fertilisers and chemicals, increased subsidies for inputs, and tax relief on machinery. These steps aim to revive the sector and ensure food security amid economic pressure and climate change impacts.
What role do provinces play in agriculture development?
While the federal government sets national policy, provinces are responsible for implementation and local agriculture development. PM Shehbaz in 2025 urged provinces to propose their own agriculture projects and allocate funds to meet regional needs. This decentralised model aims to tailor reforms more effectively across diverse agro-ecological zones.
Why is storage capacity important for agricultural growth?
Pakistan loses a significant portion of its crops post-harvest due to inadequate storage infrastructure. In 2025, increasing storage facilities—especially cold chains—is a priority to reduce waste, stabilise market prices, and support exports. Enhanced storage also ensures food security during climate shocks or supply disruptions.
What is the significance of sending students to China for agriculture studies?
Under scholarship programs, Pakistani students are being trained in China on modern agriculture practices, biotechnology, and smart farming. In 2025, these students are expected to return and become agri-entrepreneurs, spreading innovation across Pakistan’s farming communities. This initiative builds local capacity and global collaboration.
How does agriculture contribute to Pakistan’s economy in 2025?
Agriculture contributes around 20% to Pakistan’s GDP and employs nearly 40% of the labor force. In 2025, the sector is central to economic revival plans due to its role in food production, export potential, and rural livelihoods. Reforms and investments are being targeted to make it more efficient and globally competitive.
What are the key challenges facing agriculture in 2025?
Farmers face rising input costs, erratic weather patterns due to climate change, lack of mechanisation, and limited market access. The 2025 government response includes policy reforms, budget incentives, and public-private collaborations. Overcoming these challenges is critical to ensuring food security and stabilising the rural economy.
