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ISLAMABAD, Jul 28 (APP):Agricultural subsidies in Pakistan are driving environmental degradation, economic inefficiencies, and deepening inequalities in the farming sector, according to a new study unveiled at a high-level workshop held in Islamabad on Monday.
Experts called for immediate reforms to redirect these funds toward climate-smart and environmentally sustainable practices.
The study, titled “Repurposing Harmful Agricultural Subsidies to Nature Positive Outcomes in Pakistan,” found that current subsidies incentivize unsustainable farming practices—such as the excessive use of water, fertilizers, and fossil fuels—leading to soil degradation, biodiversity loss, water pollution, and increased greenhouse gas emissions.
The report urged policymakers to align subsidy policies with environmental goals and climate resilience strategies.
“Pakistan currently spends over PKR 500 billion annually on agricultural subsidies. These resources must be repurposed to promote sustainability, inclusivity, and resilience,” said Rab Nawaz, Senior Director Programmes at WWF-Pakistan. “Subsidies should support organic inputs, agroecological practices, improved extension services, and capacity building—especially for smallholder farmers.”
The study conducted a comprehensive assessment in key cereal-producing regions, collecting data from 380 farmers and stakeholders across Punjab, Sindh, Khyber Pakhtunkhwa, and Gilgit-Baltistan.
The research focused on wheat, rice, and maize production, revealing widespread dissatisfaction with the current subsidy structure.
Nearly 90% of farmers surveyed were unhappy with the system, with 70% claiming that benefits disproportionately favored large landowners.
Dr. Haroon, Economic Consultant at the Ministry of National Food Security and Research, said the findings come at a critical time.
“The Government of Pakistan acknowledges the need to align agricultural support systems with its climate and biodiversity commitments. This study offers valuable evidence to guide a shift towards sustainable farming.”
Dr. Akhter, the study’s lead consultant, emphasized that while subsidies were originally introduced to boost agricultural productivity, they are now undermining environmental and social goals. “Our analysis clearly shows that harmful subsidies must be restructured to support nature-positive and climate-resilient agriculture.”
Globally, agriculture receives over $540 billion annually in public support, with 87% considered harmful to the environment, according to international estimates.
In Pakistan, subsidies focused on food security—such as procurement guarantees for rice and water pricing incentives—have encouraged water-intensive paddy cultivation.
Experts noted this has led to groundwater depletion, methane emissions, and the discouragement of crop rotation practices.
The workshop concluded with a strong consensus on the need for urgent policy reform.
Speakers stressed that revisiting agricultural subsidies is not only an environmental imperative but also a strategic opportunity to access international climate finance and build a fairer, more sustainable agricultural system in Pakistan.
“Repurposing subsidies is a pathway toward long-term rural resilience and environmental stewardship,” said Rab Nawaz. “It’s time to invest in agriculture that supports both people and the planet.”