Govt, agriculture sector join hands to turn Pakistan’s farm economy into high-value export engine

ISLAMABAD, Sep 4 (APP):The government has brought together agriculture-sector stakeholders to formulate a roadmap aimed at increasing Pakistan’s high-value agricultural exports, with a particular focus on processing, certification, traceability, branding and access to international markets.

Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal made the remarks while chairing the third session of the Strategic Dialogue Series on “Unlocking Pakistan’s High-Value Export Potential,” held with key stakeholders from the agriculture sector here Friday. Coordinator to the Prime Minister on Commerce and Industry Rana Ahsan also attended the session.

Ahsan Iqbal has called for a major transformation of Pakistan’s agriculture sector, urging a shift from exports of raw commodities to high-value, certified, processed and branded products to unlock billions of dollars in additional export potential.

The roundtable brought together around 100 participants, including representatives of federal and provincial institutions, agricultural and engineering universities, chambers of commerce, trade associations, certification agencies, exporters and growers associated with meat, poultry, dairy, rice, dates, horticulture, olive and organic products.

Ahsan Iqbal said that the purpose of the dialogue series was to move beyond traditional consultations and establish a practical partnership among government, industry, academia and research institutions to address sector-specific challenges.

He pointed out that agriculture contributed nearly one-fourth of Pakistan’s Gross Domestic Product and provided employment to around 37 percent of the country’s labour force, yet its contribution to exports remains disproportionately low.

Coordinator to the Prime Minister on Commerce and Industry Rana Ahsan said agricultural products account for nearly 22 percent of Pakistan’s exports but remain heavily concentrated in raw commodities, leaving the sector vulnerable to international price fluctuations and external shocks.

He said that achieving Pakistan’s $60 billion export target and eventually crossing $100 billion by 2035 would not be possible without moving towards branding, processing and value addition. He outlined several measures being pursued by the government, including a review of the Export Policy Order and regulatory requirements through the Cabinet Committee on Regulatory Reforms.

The government also plans to expand the EXIM Bank export finance pool from Rs1 trillion to Rs2 trillion between 2026 and 2028, with monthly monitoring to improve access to financing. A dedicated financing window for small and medium-sized enterprises is also being developed in coordination with the Ministry of Finance and the State Bank of Pakistan. Other measures include the gradual withdrawal of additional customs and regulatory duties during the second year of the National Tariff Policy and the use of the Pakistan Horticulture Development and Export Company as a dedicated platform for agricultural exporters, he said.

Rana Ahsan further said a National Compliance Authority is expected to become operational within three months to strengthen the country’s compliance infrastructure. The conference reviewed Pakistan’s agricultural export performance, with food exports reaching $5.02 billion in FY2026 compared with a food import bill of $9.15 billion. The decline was largely attributed to lower exports of commodity rice and sugar, while meat, fish and fruit exports registered growth during the year. The new fiscal year began on a positive note, with food exports increasing 2.5 percent in July 2026. Rice exports rose 19 percent, while meat exports increased 16 percent during the month, he added.

The participants highlighted several areas with significant export potential, including halal meat and poultry, premium horticulture, branded basmati rice, processed foods, dates and edible oils. The halal meat sector, in particular, was identified as a major opportunity under the government’s target of achieving $700 million in halal meat exports by 2028.

Industry representatives and academics presented a series of proposals aimed at removing barriers to agricultural exports.

Among the recommendations was the removal of the sales tax differential that places processed and packaged meat at a disadvantage compared with informal trade.

The stakeholders also called for a national cattle and goat farming initiative focusing on disease control, improved breeds and better production standards.

The participants stressed the need to strengthen storage infrastructure and protect the electronic warehouse receipt system, particularly ahead of the upcoming wheat cycle, and concern was also expressed over substandard rice exports, with participants urging regulatory action against exporters whose poor-quality shipments have resulted in the closure of foreign markets.

Other proposals included reviewing tariffs on locally produced edible oilseeds, developing high-yielding export-quality fruit varieties in collaboration with the Pakistan Agricultural Research Council, and establishing national organic standards backed by accredited laboratories.

Participants also called for affordable group certification schemes to enable small farmers to access international organic and other premium markets.

The Ministry of National Food Security and Research informed the meeting that several legal and institutional mechanisms for livestock exports were already in place, including the breeding Policy, the Animal Health Bill and a Rs7.35 billion livestock traceability programme.

The Ministry noted, however, that these initiatives required adequate funding and adoption at the provincial level to become fully effective.

The consultations aim to build on Pakistan’s FY2026 agricultural export base by removing tax, regulatory and certification hurdles, expanding processing and traceability infrastructure, and helping Pakistani products meet the standards of high-value international markets. The government hopes that this transformation will enable agriculture to become a major driver of Pakistan’s broader ambition of achieving exports of more than $100 billion by 2035.