Islamabad Pakistan spends over Rs500 billion annually on agricultural subsidies, but far from uplifting small farmers or enhancing food security, these subsidies are contributing to environmental degradation, climate change, and inequality in the farming sector, experts and policymakers warned at a national workshop held in Islamabad on Monday.
Presenting findings of a new study titled “Repurposing Harmful Agricultural Subsidies to Nature-Positive Outcomes in Pakistan,” speakers said the country’s current subsidy regime encourages unsustainable practices such as overuse of freshwater, chemical fertilizers, and fossil fuels, resulting in soil and water degradation, biodiversity loss, and increased greenhouse gas emissions.
“Pakistan’s agricultural policies are undermining both the environment and equity. These subsidies disproportionately benefit large landholders while pushing small farmers further behind,” said Rab Nawaz, Senior Director Programmes at WWF-Pakistan.
He emphasized that the country must redirect these resources toward climate-smart agriculture, nature-based solutions, and inclusive interventions.
The study, conducted across Punjab, Sindh, Khyber Pakhtunkhwa, and Gilgit-Baltistan, surveyed 380 farmers and stakeholders including researchers, extension agents, agri-input suppliers, policymakers, and financial institutions.
It focused on major cereal crops—wheat, rice, and maize—and found that 90% of farmers were dissatisfied with the current subsidy system, while 70% said it mainly benefitted large landowners.
Dr. Haroon, Economic Consultant at the Ministry of National Food Security and Research, acknowledged the growing concerns and said: “The Government of Pakistan recognizes the urgent need to align subsidy systems with climate and biodiversity commitments. This research provides evidence to guide meaningful reforms.”
Dr. Akhter, lead author of the study, warned that the current subsidy structure is not only economically inefficient but also environmentally destructive.
“We must repurpose harmful subsidies toward nature-positive, climate-resilient farming practices that benefit both farmers and ecosystems,” he said.
Globally, agriculture receives over $540 billion in public support annually, of which 87% is considered harmful to nature, according to the United Nations Environment Programme (UNEP) and Food and Agriculture Organization (FAO).
In Pakistan, subsidies for fertilizer and irrigation have incentivized water-intensive crops like rice, contributing to groundwater depletion, methane emissions, and declining crop diversity.
The workshop also highlighted how subsidy-driven fertilizer overuse is a key contributor to agriculture-related carbon emissions, further exacerbating Pakistan’s vulnerability to climate change.
Meanwhile, environmentally beneficial practices like crop rotation, organic inputs, and agroecological methods remain underfunded and overlooked.
Speakers criticized the lack of performance-based criteria in subsidy allocation, urging the government to prioritize support for practices that reduce emissions, conserve biodiversity, and promote long-term sustainability. They called for improved extension services, better targeting of smallholders, and capacity-building programs as part of a reformed agricultural strategy.
Experts called for the restructuring of agricultural subsidies to reduce Pakistan’s environmental footprint, support rural resilience, and enhance eligibility for international climate finance.
They agreed that such reforms are both a fiscal necessity and a strategic imperative to secure the future of agriculture and the environment in Pakistan.
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