Prime Minister Shehbaz Sharif has reaffirmed the government’s commitment to revamping Pakistan’s agriculture sector by announcing a package of tax relief measures and targeted investment in agricultural technology. During a high-level meeting on agricultural reforms in Islamabad, Sharif directed officials to take immediate steps to support farmers and accelerate the use of innovation in the sector, which contributes approximately 23 percent to the national GDP and provides employment to nearly 38 percent of the labor force.
Recognizing persistent issues in agriculture, including rising input costs, inefficient irrigation, outdated harvesting practices, and limited access to modern tools, Sharif urged policymakers to reduce duties on farm machinery and avoid imposing new taxes on critical inputs like fertilizer and pesticides. The directive comes as the federal government finalizes its FY26 budget, with increased attention on rural development, productivity growth, and food security.
A major focus of the meeting was the proposed National Agriculture Innovation and Growth Action Plan. Officials briefed the prime minister on the plan’s components, which include measures to increase crop yields, enhance credit access for small farmers, and promote value-added exports. These strategies aim to raise farmer incomes and address systemic inefficiencies in production and distribution.
The prime minister emphasized the importance of leveraging global expertise by supporting Pakistani students pursuing agricultural education abroad, particularly in China. Strengthening knowledge exchange and human capital in agri-tech was described as vital to ensuring long-term impact from technological modernization efforts.
The meeting also highlighted the role of startups in advancing agricultural innovation. Under the Ignite National Technology Fund, 129 agri-tech startups have already been launched, focusing on smart farming tools, improved irrigation methods, and digital platforms that connect farmers to markets and services. These startups represent a growing ecosystem of tech-driven agriculture solutions that aim to reduce costs, increase efficiency, and improve overall sector resilience.
Government officials were further directed to speed up implementation of development projects that improve storage infrastructure, modernize irrigation systems, and support mechanized harvesting. These actions are seen as essential to reducing post-harvest losses, managing water scarcity, and addressing the broader challenges facing rural economies.
As agriculture remains a critical sector for Pakistan’s economic and social stability, the government’s new direction emphasizes a dual strategy of fiscal relief and technological enablement. The initiative reflects an effort to shift from conventional subsidy models to productivity-oriented reforms, encouraging innovation through public-private collaboration and startup engagement.
By aligning tax policy, innovation funding, and institutional support, the government aims to reshape the agriculture landscape into a more competitive, sustainable, and digitally connected domain. The broader objective is to position Pakistan’s farm sector to respond effectively to climate challenges, market demands, and the evolving needs of rural communities.
