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The spine of the economy of Pakistan
has been agriculture, which has been
providing jobs for more than 38% of the
workforce and contributing about 20%
to the national GDP. As entrenched as its
existence has been, one is surprised
why
the
sector,
in
general,
is
underdeveloped and inefficient. But the
very stagnation offers a rare opportunity
at entrepreneurship. The question of the
day is: is investing in agriculture with
entrepreneurship in Pakistan worth it
considering the risk, investment, and
effort?
Largest Market and Demand
Opportunity
Pakistan is the fifth-largest country in
the world by population. Since the
population is increasing very rapidly, the
need for food, fiber, and raw agricultural
goods is growing at a very fast rate. But
the farm-to-market supply chain is full
of wastages, inefficiencies, and quality
issues.
Entrepreneurially
driven
innovation in any one segment of this
supply chain will lead to capturing huge
market shares. Whether post-harvest
storage, logistics, organic foods, or
export-quality grading, the potential is
huge.
Technological Disparities and Space
for Innovations
Pakistani agriculture is still highly reliant
on
conventional
methods.
Mechanization, drip irrigation, precision
agriculture, and decision-making based
on data are yet to find space in the rural
farm
communities.
This
presents
wonderful opportunities for agri-tech
start-ups and business entrepreneurs.
Tajir, Crop2X, and Pak Agri Market are
already there with entries, providing
farmers improved access to market,
crop
advisories,
and
forecasts
of
produce. The initial movers authenticate
the potential and open the doors
for additional business activity.
Support from Government and Donors
In
recent
times,
the
Pakistani
government, as well as international
agencies such as USAID, ADB, and FAO,
has initiated programs for increasing
agri-entrepreneurship.
Subsidised
credit, incubation facilities specific to
agriculture, and grants are some of
them. Prime Minister's Kamyab Jawan
Program and Punjab Agriculture Policy,
among others, are schemes that provide
youth-centric financing and training. The
programslower the barrier to entry in
addition to the risk-reward mechanism
of budding entrepreneurs.
Irregular Climate and Water Shortages
Impacts of climatic changes are already
being felt by Pakistan's agricultural
sector. Erratic monsoons, increasing
temperatures, and shrinking glaciers
have rendered the availability of water
uncertain.
Large-scale
irrigation
is
required by most of the crops
such as wheat and sugarcane, which are
becoming increasingly unreliable.
Entrepreneurs should consider drought-
resistant technologies, crop insurance,
or intelligent irrigation technologies—
otherwise, crop failure remains a high
risk.
Weak
Infrastructure
and
Market
Access
Even if top-quality crops are grown by
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Enterprise Edition