Pakistan promotes climate smart Agriculture globally

October 15, 2025 (MLN): Pakistan presented its ongoing agricultural and climate resilience reforms at a high-level session organized by the World Bank Group on the sidelines of the 2025 World Bank Group, IMF Annual Meetings, reaffirming its commitment to climate-smart, technology-driven, and private sector led agricultural growth.

The session, titled “AgriConnect: Farms, Firms and Finance for Jobs”, brought together global policymakers and experts, including World Bank President Ajay Banga, Ukraine’s Finance Minister Sergii Marchenko, and Guinea’s Agriculture Minister Mariama Cire Sylla.

The discussion focused on strengthening family farms, which represent nearly half a billion smallholders producing about 80 percent of the world’s food.

Addressing the forum, Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, highlighted the pivotal role of agriculture in Pakistan’s economy, noting that the sector contributes nearly one fourth of the national GDP and provides livelihoods to millions of small scale farmers.

He stated that the government’s policy approach is focused on enabling rather than controlling, with the private sector encouraged to take the lead in areas where it can deliver greater efficiency and innovation.

Aurangzeb stressed the government’s initiatives to improve agricultural productivity and strengthen the value chain from production to exports.

He said that pilot projects offering quality seeds, fertilizers, agronomy services, and satellite-based crop monitoring have led to higher yields and incomes for small farmers, while formal credit mechanisms have reduced reliance on middlemen.

The finance minister emphasized the need to scale up these efforts through enhanced financial inclusion and institutional support.

He detailed steps being taken to expand agricultural lending, including first loss guarantees, subsidized financing and uncollateralized credit facilities for small and tenant farmers.

These initiatives, he noted, aim to build a sustainable ecosystem that empowers farmers and drives long-term sectoral growth.

Highlighting the growing threat of climate change, Aurangzeb stressed that agriculture and climate are deeply interconnected and that Pakistan is taking proactive measures to enhance climate resilience.

He referred to the World Bank’s ten-year Country Partnership Framework with Pakistan, under which one-third of the agenda focuses on climate resilience and decarbonization.

He called for faster deployment of available financing to help farmers adapt to increasingly frequent weather shocks and changing climate patterns.

The minister also emphasized the government’s focus on agricultural research, mechanization, and human capital development.

He informed participants that around 1,000 Pakistani students are currently pursuing advanced agricultural education in China, helping build expertise in modern farming techniques and technology transfer.

Reaffirming Pakistan’s commitment to deregulation and private sector participation, Aurangzeb invited investment in cold chain infrastructure, warehousing, and value added agriculture.

He added that rice exports are projected to reach $3.5bn this year, reflecting the sector’s strong export potential.

Concluding his remarks, the finance minister reiterated the government’s determination to build a resilient, technology driven, and inclusive agricultural economy.

He noted that when the entire value chain is taken into account, agriculture contributes close to 40% of Pakistan’s GDP.

Earlier, Senator Aurangzeb attended the G-24 Ministers and Governors’ Meeting held alongside the Annual Meetings, where he highlighted Pakistan’s macroeconomic stability achieved through structural reforms in taxation, energy, state-owned enterprises, and privatization.

He commended the World Bank for supporting tariff reforms to enhance competitiveness and export led growth and thanked the IMF for recognizing Pakistan’s steadfast progress on its reform agenda.

He further stressed the importance of regional trade integration and global cooperation in tackling climate change, describing it as an existential challenge for climate-vulnerable nations such as Pakistan.

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