ISLAMABAD: Pakistan’s agricultural sector, the backbone of the country’s economy, faces severe challenges due to the rising cost of electricity. The high power tariffs have not only increased the cost of production for farmers but also hindered the growth of rural industries, pointed out an official of the ministry of planning and special initiatives.
Speaking to Media on condition of being anonymous, he said lowering power tariff for the agricultural sector was a vital strategy for driving rural development.
“Agriculture in Pakistan is highly dependent on electricity, particularly for irrigation and the operation of agro-processing units. Farmers across the country are burdened by the escalating power tariffs, which have drastically increased the cost of producing essential crops like wheat, rice and sugarcane,” he said.
“Moreover, the high cost of power has made it difficult for small and medium-sized enterprises in rural areas to thrive. These businesses, which often rely on agricultural produce, are struggling to stay afloat as their operational costs soar. This situation has a ripple effect on the entire rural economy, leading to reduced employment opportunities and stunted economic growth in these regions.”
“Rural development in Pakistan is intricately linked to the performance of the agricultural sector. When farmers and rural businesses face financial difficulties due to high electricity costs, the broader goals of rural development —such as poverty alleviation, improved living standards and infrastructure development — are severely hampered,” highlighted M Bilal, a senior scientific officer at National Agricultural Research Centre (NARC).
Talking to Media, he said: “The rising cost of electricity has also led to an increase in the prices of agricultural inputs, making it more difficult for farmers to maintain profitability. Consequently, many smallholding farmers are being pushed to abandon farming, which increases rural-to-urban migration and further strains the already overburdened urban infrastructure.”
Given the critical role of agriculture in Pakistan’s economy and the ongoing struggles of the rural population, there is a compelling case for the government to provide relief in power tariffs. By reducing the cost of electricity, the government can alleviate the financial pressures on farmers and rural businesses, enabling them to contribute more effectively to the economy. This, in turn, would lead to a more prosperous and sustainable future for Pakistan’s rural population, ensuring that agriculture remains a robust pillar of the nation’s economy.
Muhammad Akmal, a farmer from rural Punjab, said: “I’ve been farming for over 20 years, but now the rising electricity costs have made it nearly impossible to maintain a decent livelihood. Every season, we’re forced to cut back on essential inputs like fertilizer and seeds just to pay the power bills. If the government provides relief in power tariffs, it would be a game-changer for farmers like me. We could invest in better equipment and irrigation systems, which would boost our yields and help us compete in the market. Without this support, many of us will struggle to keep our farms running.” –INP
