Agriculture & Food Processing

With the contribution of 19% to the National GDP and 75% direct or indirect share of export earnings of Pakistan, the Agriculture sector of Punjab is the strongest potential for Foreign Directed Investments (FDI) in the Province. With best-suited weather, fertile soil and the world’s most elaborate irrigation network garnering all major crops, vegetables & fruits, wheat, maize, rice, mango, citrus, guava, and potato, Punjab is truly the grain and kitchen garden of Pakistan and the region.

Opportunities across the complete value chain spanning over new high-yielding crops, mechanization of farming techniques, optimization of water utilization, food and fruit processing, and value-addition for export value enhancement, Punjab is a ripe market for investors and innovators.

During FY2022, the agriculture sector recorded a remarkable growth of 4.40 percent and surpassed that year’s target of 3.5% and last year’s growth of 3.48%. This growth is mainly driven by high yields, attractive output prices, supportive Government policies, better availability of certified seeds, pesticides, and agriculture credit.

Key Facts

• Total cropped area of 17 million hectares accounts for 57% of the total cultivated land in Pakistan
• 80% of the total national wheat production
• Agriculture is the raw material lifeline for the largest export industry of Pakistan, i.e., Textiles
• Engages 48% of the total labour force
• 95% of citrus, 82% guavas and 66% mangoes are harvested in Punjab

High Efficiency Irrigation Systems (HEISs)

Support and promotion of local fabrication of HEIS equipment and associated accessories is needed to ensure availability to farmers at a low cost.

Estimated Capital Investment
PKR. 300 Million (USD 1.5 Million)

High Efficiency Irrigation Systems (HEISs) (drip & sprinkler systems) are the most efficient technologies that make highly effective use of crop inputs (water, fertilizers, etc.). HEISs have become the most valued innovation in the world to transform agriculture with an irrigation efficiency of over 90%. Punjab has introduced this technology among farmers but its cost is very high due to the import of HEIS equipment. High capital cost is a major hurdle to the sustainable adoption of HEIS technologies by farmers. Foreign companies can invest in Punjab for local manufacturing of HEIS equipment to meet local demand as well as exports.

Drip irrigation is one of the most efficient methods for delivering water to crops with minimal waste. Currently, it is used on less than 2 percent of irrigated land in the world but it can reduce water use by 30% to 70%. There are several advantages including reduction of evaporation, reduction of water consumed by weed, and irrigation to an exact root depth of crops. Water is conserved in a controlled manner through rainfall.

This joint venture project will help in water conservation through the introduction of modern agricultural techniques and farmer’s skill enhancement. Sprinkler systems are designed to ensure maximum water saving, combining high quality, affordability, and ease of installation. Components are essentially made from high-strength & chemically resistant engineering plastic to achieve functional satisfaction and favorable cost economics.

Smart Agriculture Parks

Value Chain Investment Opportunities

• Low Carbon Agriculture Support Projects
• R&D Centers for Underutilized Small Scale Farms for Food Production
• Tomato Ketchup Manufacturing Unit
• Rice Processing Units
• Fruit Jam Manufacturing and Packaging Unit
• Onion Drying and Processing Unit
• Upgradation and Cotton Research Institute in Multan
• Establishment of Rice Testing Lab in Kala Shah Kaku
• Mango Research and Gene Modification Laboratory & Institute