Agriculture remains a cornerstone of Pakistan's economy. It contributes about 22.9 percent of the country's gross domestic product (GDP) and employs about 37.4 percent of the workforce, according to the Economic Survey of Pakistan 2023-2024. Beyond its economic importance, agriculture is closely linked to the socio-economic fabric of the country.
However, the sector faces several systemic challenges that limit its full potential, including limited market access, inefficiencies within the value chain and low farmer profitability, all of which negatively impact agricultural productivity.
Integrating information and communication technologies (ICT) into agricultural value chain management has the potential to address these inefficiencies by improving market access, improving resource utilization and promoting more efficient supply chains.
The introduction of ICT can significantly improve value chain management by facilitating real-time data exchange, improving decision-making and reducing information asymmetries. However, the widespread adoption of ICT faces several hurdles such as: B. digital illiteracy, financial constraints and inadequate infrastructure networks.
Major crops, including wheat, rice, cotton, and a variety of fruits and vegetables, dominate Pakistan's agricultural landscape. Despite its importance, the sector is subject to several factors inhibiting growth.
In particular, the agricultural supply chain is fragmented, with middlemen often monopolizing markets and exploiting farmers, limiting their access to fair prices and competitive markets. Furthermore, due to a lack of market knowledge and understanding of price dynamics, farmers often make suboptimal decisions, leading to unnecessary cost burdens and wasted resources.
The persistence of traditional agricultural practices and outdated supply chain management systems further exacerbates these challenges and limits farmers' ability to adapt to new market demands. Reliance on inadequate transportation infrastructure further increases operational inefficiency and contributes to corruption.
Furthermore, limited access to financial resources prevents smallholder farmers from investing in advanced technologies and improving their production processes.
A promising solution to these challenges lies in the strategic use of ICT in agricultural practice. ICTs can improve collaboration between key stakeholders, improve the flow of information and provide farmers with better access to market prices and agricultural advice, which can significantly increase efficiency.
The integration of ICT into the agricultural value chain is expected to unlock significant economic potential, particularly as Pakistan evolves into a more technology-oriented economy. By enabling greater access to information and reducing barriers to market participation, ICTs can promote a more resilient agricultural sector, improve food security and raise the living standards of millions of smallholder farmers.
To facilitate the adoption of ICT in Pakistan's agricultural value chain, it is crucial to bridge the digital divide, especially in rural areas. Public-private partnerships can play a critical role in providing internet connectivity in underserved regions and ensuring farmers have access to digital tools and information. In addition, targeted training programs for farmers and stakeholders, tailored to the local context, are crucial to improve digital literacy and ensure the effective use of ICTs in agricultural practices.
In addition, improving transport infrastructure, especially in rural and remote areas, is crucial to ensure that agricultural products reach the market in a timely and efficient manner. Investments in refrigerated transport vehicles are necessary to maintain the quality of perishable products throughout the supply chain.
Furthermore, the development of integrated logistics systems that combine digital tools with transportation and warehousing solutions can streamline the movement of goods, reduce costs and improve the overall competitiveness of Pakistan's agricultural exports. By improving logistical conditions, we can reduce waste, increase farmers' profitability and strengthen our position in global agricultural markets.
Partnerships between government agencies, private companies and non-governmental organizations (NGOs) can create an enabling environment that protects the interests of smallholder farmers while promoting the adoption of ICT in the agricultural sector.
Restructuring agricultural production networks using ICT can make the sector more adaptable, safe and efficient, thereby promoting sustainable economic growth. As Pakistan transitions to a digital economy, ICT will be crucial in transforming the agricultural sector, making it an essential tool for future development.
Copyright Business Recorder, 2025