Pakistan, a nation nestled in South Asia with a rich tapestry of culture, history, and natural resources, has long relied on agriculture as the backbone of its economy. From the fertile plains of Punjab to the arid landscapes of Balochistan, agriculture shapes the livelihoods of millions and serves as a critical pillar of economic development. As of April 2025, with a population exceeding 240 million and a growing need for sustainable growth, the role of agriculture in Pakistan’s economic framework remains as vital as ever. This article explores the multifaceted contributions of agriculture to Pakistan’s economy, its historical evolution, current challenges, and future potential, while delving into its impact on employment, GDP, food security, and industrial growth.



Historical Context: Agriculture as Pakistan’s Economic Foundation

When Pakistan emerged as an independent state in 1947, it inherited an agrarian economy from British India. The partition brought with it vast tracts of fertile land, particularly in the Punjab and Sindh regions, watered by the mighty Indus River and its tributaries. At the time, agriculture accounted for over 50% of the country’s GDP and employed nearly three-quarters of its workforce. The early years of Pakistan’s economic journey were defined by efforts to harness this agricultural potential, with initiatives like the development of canal irrigation systems and land reforms aimed at boosting productivity.

The Green Revolution of the 1960s marked a turning point. The introduction of high-yield variety (HYV) seeds, chemical fertilizers, and mechanized farming techniques transformed Pakistan into a food-surplus nation by the 1970s. Wheat and rice production soared, and the country began exporting surplus grains, laying the groundwork for agriculture’s enduring role in economic stability. However, this progress was not without its challenges—unequal land distribution, water scarcity, and reliance on traditional methods continued to hinder equitable growth.

Today, agriculture’s share of GDP has declined to around 19-20% due to the rise of industry and services, but its significance transcends mere numbers. It remains the largest employer, a key source of raw materials for industries, and a linchpin of rural development. Understanding its role requires a deep dive into its contributions across various economic dimensions.

Contribution to Gross Domestic Product (GDP)

Agriculture’s direct contribution to Pakistan’s GDP, as of 2025, hovers around 19%, according to estimates from the Pakistan Economic Survey and other reliable sources. This figure, while lower than in previous decades, masks the sector’s broader economic influence. Major crops like wheat, rice, cotton, sugarcane, and maize account for a significant portion of this contribution, with livestock, fisheries, and forestry adding further value.

Wheat, often dubbed the “staff of life” in Pakistan, is a staple crop that feeds millions and stabilizes food prices. In the 2023-2024 crop year, Pakistan produced over 28 million tons of wheat, a testament to its agricultural resilience despite climate challenges. Rice, particularly the aromatic Basmati variety, is a major export earner, contributing over $2 billion annually to foreign exchange reserves. Cotton, known as “white gold,” fuels the textile industry—Pakistan’s largest industrial sector—while sugarcane supports the sugar industry and rural economies.

Livestock, often overlooked, is a silent giant within agriculture, contributing nearly 60% of the sector’s value. Pakistan is among the top milk-producing countries globally, with an output exceeding 65 million tons annually. This subsector not only meets domestic demand but also holds untapped export potential in dairy and meat products. Together, these agricultural outputs ensure that even as its GDP share shrinks, the sector’s ripple effects sustain economic activity across urban and rural divides.

Employment and Livelihoods: The Rural Lifeline 

In a country where over 60% of the population resides in rural areas, agriculture is more than an economic activity—it’s a way of life. As of 2025, the sector employs approximately 38-40% of Pakistan’s labor force, making it the single largest source of jobs. From smallholder farmers in Sindh to pastoralists in Balochistan, agriculture provides direct and indirect employment to millions, including women who play a crucial role in planting, harvesting, and livestock rearing.

The employment landscape in agriculture is diverse. Seasonal laborers flock to fields during sowing and harvest seasons, while permanent workers manage dairy farms, orchards, and poultry units. Beyond farming, ancillary activities like transportation, storage, and marketing of agricultural goods create a vast ecosystem of jobs. For instance, the cotton harvest in Punjab fuels employment not just in fields but also in ginning factories, textile mills, and export houses.

However, this reliance on agriculture for employment reveals a double-edged sword. While it absorbs a significant portion of the workforce, it also highlights Pakistan’s lag in transitioning to higher-value industries. Many rural workers remain trapped in low-wage, subsistence-level jobs due to limited education and mechanization. Addressing this requires balancing agricultural growth with skill development and industrial expansion—a challenge Pakistan continues to grapple with.

Food Security: Feeding a Growing Nation 

With a population projected to reach 250 million by 2030, ensuring food security is a pressing priority for Pakistan. Agriculture is the bedrock of this effort, supplying staples like wheat, rice, and maize, as well as fruits, vegetables, and proteins from livestock and fisheries. The sector’s ability to meet domestic demand while generating surpluses for export is a key measure of its economic importance.

Pakistan’s food security narrative is one of resilience amid adversity. The country has faced floods, droughts, and pest attacks—like the locust swarms of 2019-2020—yet consistently managed to rebound. Government policies, such as subsidies on fertilizers and minimum support prices for crops, have bolstered production. For example, the 2024 wheat harvest exceeded targets despite erratic monsoon rains, ensuring buffer stocks for emergencies.

Yet, challenges loom large. Malnutrition affects over 40% of children under five, reflecting gaps in food distribution and affordability rather than production alone. Climate change, with its unpredictable weather patterns and rising temperatures, threatens yields, while water scarcity—exacerbated by upstream damming of the Indus—jeopardizes irrigation. Agriculture’s role in food security, therefore, extends beyond growing food to ensuring its equitable access, a task requiring coordinated policy and innovation.

Industrial Linkages: The Agricultural-Industrial Nexus 

Agriculture and industry in Pakistan are deeply intertwined, with the former supplying raw materials to the latter. The textile industry, which accounts for over 60% of Pakistan’s exports, relies heavily on cotton production. In 2024, Pakistan produced approximately 8 million bales of cotton, supporting a value chain that spans ginning, spinning, weaving, and garment manufacturing. This linkage generates billions in revenue and employs millions, underscoring agriculture’s indirect economic impact.

Sugarcane feeds the sugar industry, which, despite periodic controversies over pricing and surpluses, remains a significant player in domestic markets. By-products like molasses and bagasse also support ethanol production and power generation, showcasing agriculture’s versatility. Similarly, the leather industry thrives on hides from livestock, while poultry and fisheries bolster food processing sectors.

This nexus highlights a critical dynamic: agricultural productivity directly influences industrial output. A poor cotton harvest, for instance, can ripple through textile exports, affecting foreign exchange earnings. Conversely, industrial demand drives agricultural innovation, such as the adoption of hybrid seeds to meet quality standards. Strengthening this synergy is essential for Pakistan’s economic diversification and global competitiveness.

Export Earnings: A Gateway to Foreign Exchange

Pakistan’s agricultural exports are a lifeline for its balance of payments, earning over $5 billion annually as of 2025. Rice, particularly Basmati, leads the pack, with markets in the Middle East, Europe, and North America. Mangoes, citrus fruits (like kinnow), and dates from Sindh and Balochistan have carved a niche in global trade, bolstered by their quality and taste.

The livestock sector is emerging as an export frontier, with halal meat gaining traction in Gulf countries. Fisheries, though underdeveloped, contribute through shrimp and fish exports to East Asia and Europe. These earnings not only offset import bills—Pakistan spends heavily on edible oils and pulses—but also stabilize the rupee in a volatile economic climate.

However, export potential remains underutilized. Inconsistent quality, limited value addition (e.g., processed foods), and trade barriers hamper growth. For instance, while Pakistan is the world’s fourth-largest milk producer, its dairy exports pale compared to competitors like New Zealand due to inadequate cold chains and certification. Unlocking this potential could elevate agriculture’s economic role significantly.

Challenges Facing Agriculture in Pakistan 

Despite its contributions, Pakistan’s agricultural sector faces formidable hurdles. Water scarcity is a perennial issue, with the Indus River system under strain from climate change and geopolitical tensions with India over water-sharing treaties. Over 80% of Pakistan’s farmland depends on irrigation, yet canal inefficiencies and groundwater depletion threaten sustainability.

Climate change compounds these woes. Rising temperatures reduce crop yields—wheat productivity drops by 6% for every 1°C increase—while floods and droughts disrupt planting cycles. The 2022 floods, which submerged a third of the country, wiped out crops worth $3.2 billion, exposing agriculture’s vulnerability.

Land fragmentation is another barrier. With an average farm size of less than 5 acres, mechanization and economies of scale remain elusive for most farmers. Coupled with low literacy rates, this limits the adoption of modern techniques. Pests, diseases, and post-harvest losses—estimated at 20-30% for fruits and vegetables—further erode gains.

Policy inconsistencies add to the mix. Subsidies and support prices, while beneficial, often favor large landowners, sidelining small farmers who form the sector’s backbone. Access to credit is limited, and rural infrastructure—roads, storage, and markets—lags behind urban centers, stifling growth.

The Path Forward: Innovations and Opportunities

Pakistan’s agricultural future hinges on innovation and adaptation. Precision farming, using drones and sensors to optimize water and fertilizer use, could revolutionize productivity. Biotechnology, such as drought-resistant seeds, offers hope against climate challenges. The government’s 2024 initiative to distribute solar-powered tube wells to small farmers is a step toward sustainable irrigation.

Agro-processing holds immense promise. Turning raw mangoes into pulp, milk into cheese, or fish into frozen fillets could boost exports and rural incomes. Public-private partnerships, like those piloted in Punjab’s citrus belt, demonstrate how investment in cold storage and packaging can reduce losses and enhance marketability.

Education and extension services are critical. Empowering farmers with knowledge about soil health, crop rotation, and market trends can bridge the gap between tradition and modernity. Women, who constitute 70% of the rural agricultural workforce, must be prioritized through training and access to resources.

Finally, regional cooperation—such as joint water management with India or trade pacts with Central Asia—could amplify agriculture’s economic role. The China-Pakistan Economic Corridor (CPEC) offers a platform to export perishables to China, provided infrastructure keeps pace.

Conclusion: Agriculture as Pakistan’s Economic Anchor 

Agriculture in Pakistan is more than a sector—it’s a lifeline that sustains millions, drives industries, and anchors economic stability. Its contributions to GDP, employment, food security, and exports underscore its indispensability, even as its challenges demand urgent attention. As Pakistan navigates a complex future marked by population growth, climate change, and global competition, agriculture’s role must evolve from a traditional mainstay to a dynamic engine of inclusive growth.

By investing in technology, infrastructure, and human capital, Pakistan can harness its agricultural potential to not only feed its people but also power its economy onto the global stage. The fields of Punjab, the orchards of Khyber Pakhtunkhwa, and the pastures of Sindh hold the promise of prosperity—if nurtured with vision and resolve. In 2025 and beyond, agriculture remains Pakistan’s beating heart, pulsing with the rhythm of its past and the hope of its future.