- Sustained macro-fiscal and structural reforms are crucial
- Regular evaluations and adjustments are essential
Interview with Mr. Hakim Ali Jatoi — Chief Executive, Hakim Agri Farms
PAGE: Tell me something about yourself, please:
Hakim Ali Jatoi:Â Born in District Kamber-Shahdadkot, Sindh, I received my early education in the same city before relocating to Karachi for middle and higher education. I hold the distinguished title of Fellow Member at the Institute of Cost & Management Accountants of Pakistan, complemented by qualifications in LLB and an MS in Management Sciences. I am Chief Executive Hakim Agri Farms and a Director at Brick & Wire (Private) Limited, a company actively involved in the construction and solar energy sectors.
Additionally, I serve as the Secretary & Treasurer of the Karachi Branch Council of ICMA Pakistan. I am committed to knowledge sharing through my role as a Guest Speaker and Lead Trainer at various seminars and workshops, where I cover topics related to Accounting, Finance, Audit, and Corporate and Labour Laws. Furthermore, I contribute as a teaching visiting faculty member at several prestigious universities.
PAGE: How was 2023 for agriculture sector?
Hakim Ali Jatoi:Â Pakistan’s agriculture sector is a cornerstone of the economy, contributing approximately 25 per cent to the GDP. The country is a global leader in the production of wheat, cotton, sugarcane, mangoes, dates, rice, and oranges. Agriculture not only meets domestic food demands but also significantly contributes to export earnings, with the value of agricultural exports reaching $5.2 billion in 2022-23, a 13 per cent increase from the previous year, according to the Pakistan Bureau of Statistics. Key exports include rice, fruits, vegetables, cotton yarn, raw cotton, fish, and fish preparations. This growth is attributed to improved productivity, better prices, and increased global demand.
To modernise, Pakistan has adopted new technologies, improved water management, enhanced seed quality, expanded cultivated land for high-value crops, strengthened links between processors and growers, and provided incentives for agro-processing. Major crops such as rice, sugarcane, and cotton are pivotal for both domestic consumption and export. Rice production is expected to reach a record 9 million tonnes in 2022-23, with Pakistan being the 10th largest rice exporter globally. Sugarcane, the fifth-largest producer globally, faces challenges like low sugar recovery and high production costs, leading to sugar imports. Cotton, contributing 60 per cent to total exports, is forecasted to rebound to 5.3 million bales in 2023-24 after a flood-damaged 2022-23 crop. Despite these successes, Pakistan grapples with water scarcity issues, exacerbated by climate change and poor water management, resulting in annual losses of $12 billion. The agriculture sector faces challenges such as low mechanisation, outdated technology, and weak extension services. Access to credit, information, and markets remains limited for many farmers, hindering the adoption of new technologies and practices. The government’s fiscal consolidation measures, such as reducing subsidies and increasing tariffs, have affected farmers’ profitability, compounded by the 2022 floods leading to a contraction in agricultural output. To address these challenges, sustained macro-fiscal and structural reforms are crucial to enhance competitiveness, productivity, and diversify agricultural exports.
Pakistan has immense potential to increase exports by diversifying markets, enhancing quality standards, branding products, and complying with international trade regulations. Targeting markets in China, Turkey, Qatar, Kenya, Afghanistan, UAE, and Saudi Arabia for rice exports, improving milling efficiency for sugar, and upgrading the textile industry for cotton products are key strategies to tap into lucrative opportunities and drive economic growth.
PAGE:Â What is your standpoint on traditional farming and progressive farming in terms of yield?
Hakim Ali Jatoi:Â Traditional farming usually involves time-tested methods passed down through generations. This includes relying on traditional crop varieties, manual labour, and less dependence on modern technology. The yield in traditional farming varies based on factors like climate, soil quality, and farming practices. While traditional methods can be sustainable in certain situations, they often face challenges in terms of efficiency and scalability.
On the flip side, progressive farming embraces modern agricultural practices by incorporating technology, improved crop varieties, mechanisation, and advanced farming techniques. The goal of progressive farming is to enhance efficiency, productivity, and sustainability. Examples of progressive farming practices include precision agriculture, genetically modified crops, and advanced irrigation systems.
In general, progressive farming has the potential to achieve higher yields compared to traditional methods. The integration of technology, improved seeds, and scientific farming practices can contribute to increased efficiency, reduced waste, and better resource management. However, the adoption of progressive farming practices also raises questions about environmental sustainability, the use of synthetic inputs, and the economic viability for small-scale farmers. It’s essential to note that the success of either traditional or progressive farming depends on various factors, including the specific context, the crops being cultivated, and the goals of the farmers. Many agriculture experts advocate for a balanced approach that considers both traditional wisdom and modern innovations to achieve sustainable and productive agriculture.
PAGE: Do you reckon agriculture sector of Sindh could make the entire province self-sufficient with regard to food security?
Hakim Ali Jatoi:Â Sindh is self-sufficient in producing wheat, which is the staple cereal crop. As the province does not rely on the purchase of wheat from other provinces, mainly Punjab. However, agriculture in Sindh is characterised by limited availability of water, small landholdings, and high dependence on rainfall, with most farmers engaged in small-scale subsistence-level crop production. Additionally, the distribution of agricultural land ownership shows that a significant percentage of households do not own any agricultural land.
Given these factors, while Sindh may be self-sufficient in producing certain staple crops, the overall food security of the province may still face challenges due to limited landholdings, dependence on rainfall, and the need for market access for food needs. Therefore, it may not be feasible for the entire province to be self-sufficient in terms of food security based solely on the agriculture sector. Although, Sindh Agriculture Policy (2018-2030) sets ambitious goals for the agriculture sector, achieving complete self-sufficiency in food production may require significant investments in infrastructure, technology, and human capital. Also, the policy’s focus on enhancing productivity, improving natural resource management, and promoting sustainable agricultural practices suggests that the province is committed to moving towards greater self-sufficiency in food production.
It’s important to note that achieving complete self-sufficiency in food production is a complex and multifaceted goal that depends on various factors such as land availability, water resources, technological advancements, and market dynamics. Therefore, while the Sindh Agriculture Policy sets the stage for progress towards food security, achieving complete self-sufficiency may require sustained efforts and collaboration across multiple sectors.
PAGE: What is your take on government incentives for agriculture sector of Sindh?
Hakim Ali Jatoi:Â Government incentives for the agriculture sector, whether in Sindh or any region, play a crucial role in supporting farmers, encouraging sustainable practices, and boosting overall productivity. Various aspects need consideration in this endeavour. Financial support is a key component, with governments often providing subsidies, low-interest loans, or grants to farmers. These financial aids are strategically targeted towards assisting farmers in acquiring modern equipment, seeds, fertilizers, and other essential inputs.
Technology adoption is another focus area, where incentives are designed to promote the adoption of modern agricultural technologies. This includes encouraging practices such as precision farming, the implementation of advanced irrigation systems, and the utilisation of genetically modified crops. Training and education initiatives are also emphasised, with governments investing in farmer education programmes. These programmes aim to enhance the skills and knowledge of farmers, empowering them to make informed decisions and adopt best practices for sustainable agriculture. Infrastructure development is a vital aspect of government support, involving investments in rural infrastructure. This includes the development of roads, storage facilities, and improved market access, contributing to the overall efficiency of the agriculture supply chain.
Research and development funding is allocated to agricultural research, fostering the development of new crop varieties, pest-resistant strains, and innovative farming techniques. This support is pivotal in contributing to increased productivity and resilience in the face of challenges.
Insurance schemes are introduced to mitigate risks associated with crop failure due to adverse weather conditions, pests, or diseases. Such initiatives provide a safety net for farmers, ensuring a level of financial protection.
Environmental sustainability is a growing concern, and incentives are tailored to promote environmentally sustainable practices. This includes supporting organic farming and conservation agriculture, aiming to ensure the long-term health of the land and its resources.
Market access initiatives are also implemented to facilitate market access for farmers. This involves the development of market infrastructure and the establishment of fair pricing mechanisms, positively impacting the agriculture sector by providing farmers with equitable opportunities. It’s crucial to note that the effectiveness of these incentives depends on various factors, including the implementation strategy, monitoring mechanisms, and the accessibility of farmers to utilise these incentives. Regular evaluations and adjustments to these programmes are essential to ensuring their success and addressing the evolving needs of the agriculture sector in the province of Sindh and beyond.