The State Bank of Pakistan (SBP) stressed the vital importance of digitization and information access for farmers in its Annual Report on the State of Pakistan’s Economy. In the fiscal year 2023, the agriculture sector saw a decline in growth to 1.6 percent due to droughts followed by heavy monsoon flooding, leading to a significant drop in Rice and Cotton crops. However, Sugarcane and Wheat production increased, and the Livestock sector played a crucial role in sustaining the sector.
Climate change challenges were evident, with erratic surface water availability and manifestations like droughts and floods affecting agricultural productivity. The report highlighted a 25.2 percent growth in credit availability, reaching Rs. 1.77 trillion, attributing it to various factors like production loans, agricultural credit scoring, and risk mitigation efforts.
The report acknowledged the challenges faced by farmers, including limited access to information, financial services, and markets. It compared Pakistan’s agriculture productivity with competitors like China, India, and Brazil, emphasizing the transformative potential of Information and Communication Technology (ICT) tools. Mobile phones, sensors, and satellites were identified as key elements in providing vital information to farmers, improving productivity, and reducing costs.
The report cited examples from Kenya, India, and Rwanda, where ICT integration significantly enhanced agricultural yields. Innovations like mobile apps and sensor technology played a crucial role in disease detection, pest control, and yield estimation. Price discovery apps in Niger and improved information access in Ghana were shown to increase yields and reduce costs.
ICT tools, such as soil health cards in India and smart irrigation practices in Vietnam, demonstrated tangible benefits, reducing chemical fertilizer usage and conserving water resources. The report highlighted the potential of ICT-enabled solutions in connecting farmers with financial services and markets, citing examples from China where online shops run by rural farmers transformed market access.
Despite these advancements, challenges like low literacy rates and digital skills hindered effective ICT utilization. The report emphasized that digital advisories and marketplaces significantly lower search costs for farmers, especially in the face of extreme weather events, positioning ICT-based advisories as essential tools for better preparedness.
