‘Pakistan must shift from raw exports to agri value-addition’

LAHORE: By promoting agri-based value-added industries, Pakistan can transform its agricultural sector into a source of sustained profitability, ensure fair remuneration for farmers, and build a resilient agro-industrial base. Converting crops into higher-value products would not only significantly enhance export earnings but also deliver long-term gains for the national economy.

To revitalize the agriculture sector, the country needs a three-pronged strategy comprising the introduction of value-added crops, development of climate-resilient seed varieties, and the promotion of agri-based value-added industries.

Ironically, when domestic production falls short, Pakistan looks outward to meet demand, but when output exceeds requirements, the country lacks the capacity and infrastructure to capitalize on surpluses. Instead of extracting value, surplus produce is exported in raw form, forfeiting potential earnings.

The potato crop offers a telling example of this structural weakness, a story of missed opportunity, short-term thinking and a policy framework that favours trading over transformation.

Each season, truckloads of fresh potatoes are exported to regional markets, yielding only modest foreign exchange. In the process, Pakistan quietly surrenders the substantial value that other economies derive from processing the same crop.

In China, Vietnam, Europe and the United States, potatoes rarely cross borders as raw produce. They are converted into frozen French fries, flakes, starch, dehydrated products, snacks and ready-to-eat foods.

These countries do not export vegetables; they export industries. Pakistan, despite having a favourable climate, scale of production and abundant labour, remains entrenched at the lowest rung of the value chain.

Engr. Jawed Saleem Qureshi, Chairman of a leading agro-based industry, told Business Recorder that the core constraint is not agricultural capacity but mindset.

Exporters, he observed, continue to function as traders rather than manufacturers. Shipping a raw consignment to Dubai is widely viewed as faster, safer and cheaper than investing in processing plants that require capital, energy, technology, certifications and patience.

He suggested that enabling farmers to install basic processing machinery, for instance, converting raw potatoes into potato powder, could allow them to monetise surplus production. Potato powder, he noted, enjoys steady global demand and is widely used across industries ranging from cosmetics to confectionery.

Similarly, to address recurring price crashes during peak tomato harvests, the government should facilitate the installation of tomato-paste manufacturing units, allowing produce to be marketed year-round at stable and remunerative prices.

Qureshi emphasised the need for a policy framework that links farmers with processors through industrial clusters, provides zero-rated access to machinery and technology, and imposes calibrated regulatory duties on competing imported finished products.

Crucially, he stressed that revenue generated through such duties must be ring-fenced for industry-led research, quality enhancement and export certification.

He further pointed out that climate change has emerged as a pressing challenge for Pakistan’s agriculture.

Developing crop varieties capable of withstanding rising temperatures, erratic rainfall patterns and extreme weather events is now imperative. Failure to address climate resilience, he warned, will continue to undermine productivity, as already witnessed in key crops such as rice, wheat and cotton.

Copyright Business Recorder, 2026