Aurangzeb outlines agri-finance reforms, climate resilience to drive private sector growth, exports
In Washington, during the sidelines of the IMF World Bank Annual Meetings, Finance Minister Muhammad Aurangzeb addressed a high-level World Bank panel titled “AgriConnect: Farms, Firms, and Finance for Jobs,” spotlighting Pakistan’s push to modernize its agricultural sector while confronting climate risks.
Aurangzeb began by underscoring agriculture’s central role in Pakistan’s economy, contributing nearly one quarter of GDP and supporting millions of smallholder farmers owning less than five hectares. He stressed that policy would shift from direct control to facilitation, allowing the private sector to drive growth in areas where it can be more effective.
He detailed pilot programs now underway, supplying seeds and fertilisers, offering agronomic services, and employing satellite-based crop monitoring to help farmers boost yields while reducing reliance on intermediaries.
To scale these efforts, the minister called on the financial sector to step in, offering first-loss guarantees, subsidized loans, and uncollateralized credit for small and tenant farmers.
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On climate resilience, Aurangzeb emphasised the urgency of adapting to extreme weather events, such as the recent floods that badly affected the rice crop. He noted that one-third of Pakistan’s ten-year Country Partnership Framework with the World Bank is devoted to climate action and decarbonization. Financial resources exist, he said, but deployment must accelerate to meet evolving challenges.
Investing in capacity building, the government has sent around 1,000 Pakistani students to China for advanced training in agricultural research, mechanization, and modern farming methods. In responses to queries, Aurangzeb reaffirmed commitment to deregulation and incentivizing private investment in infrastructure such as cold chains, warehousing, and value-added processing.
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He also flagged the export potential of key crops, projecting rice exports of about $3.5 billion in the current year. In his closing remarks, the minister expanded the definition of agriculture’s impact, stating that when the full value chain is included, the sector contributes nearly 40 per cent of GDP.
Earlier in Washington, Aurangzeb also attended the G-24 Ministers’ meeting, where he highlighted Pakistan’s macroeconomic stability, crediting structural reforms in taxation, energy, and privatisation, while thanking the IMF and World Bank for backing tariff reforms and cross-border trade initiatives.
