Pakistan's Vegetable Sector: Unlocking Export Potential

Agriculture continues to serve as the backbone of Pakistan’s economy, contributing around 22.7% to the national GDP and employing 37.4% of the total labor force (Pakistan Economic Survey, 2023–24). Within this broad sector, vegetable cultivation has emerged as a crucial sub-sector for income generation, employment creation, and food security, especially in rural areas. Key vegetables such as onions, potatoes, tomatoes, chilies, and okra are widely grown in the fertile plains of Punjab and Sindh, which together account for most of the national output. The increasing urbanization, population growth, and rising awareness about healthy diets have significantly boosted domestic demand.

At the same time, export opportunities are expanding due to the growing demand for fresh and processed vegetables in regional and global markets. However, Pakistan’s performance remains below potential compared to competitors like India, China, and Thailand, mainly because of outdated farming practices, low yields, lack of modern cold-chain infrastructure, and difficulties in complying with international Sanitary and Phytosanitary (SPS) standards. Vegetable farming offers multiple comparative advantages. It provides higher economic returns per acre and allows for several cropping cycles in a year, making it a profitable choice for smallholder farmers. Moreover, the sector has a strong gender dimension women play a central role in harvesting, sorting, grading, and packaging, thereby contributing to household income and food security. Nutritionally, vegetables are essential for improving dietary diversity and combating the widespread micronutrient deficiencies often called “hidden hunger” that affect large segments of the population (FAO, 2023). On a national scale, improving vegetable production and export competitiveness would diversify Pakistan’s agricultural export base, moving away from low-value bulk commodities such as raw cotton and rice. Such diversification can enhance foreign exchange earnings, improve rural livelihoods, and contribute to a more resilient and sustainable agricultural economy.

Current Production and Yield Analysis

Pakistan produces approximately 6.8 million tonnes of vegetables annually, reflecting the sector’s importance to both rural livelihoods and national food security (Pakistan Bureau of Statistics, 2024). Among major vegetables, potatoes account for about 5.9 million tonnes, primarily cultivated in Punjab and Khyber Pakhtunkhwa, while onion production stands at 2.5 million tonnes, with Sindh, Balochistan, and Punjab serving as key producing regions. Tomato production, though smaller in volume at around 0.7 million tonnes, remains vital for both domestic consumption and processing industries in Sindh, Punjab, and Khyber Pakhtunkhwa. These crops together form the backbone of Pakistan’s vegetable economy, supporting thousands of smallholder farmers, traders, and supply chain workers across the country.

However, despite this considerable output, Pakistan’s vegetable yields remain significantly below global averages by nearly 30% to 50% in some cases. The average yield of potatoes, for example, is around 20.1 tonnes per hectare, compared to the global average of 48.6 tonnes per hectare (FAOSTAT, 2023). Similar productivity gaps are observed in onion and tomato crops, largely due to low adoption of improved seed varieties, inadequate fertilizer application, and outdated farming techniques. Inefficient irrigation practices and limited mechanization further reduce yield potential. Additionally, pest infestations, plant diseases, and the absence of effective extension services contribute to post-harvest losses, estimated at 25–40% in some regions.

The growing unpredictability of climate conditions including erratic rainfall, floods, and heatwaves has intensified these challenges, making yields even more vulnerable. Addressing these constraints requires a strategic shift toward climate-smart agriculture, the use of certified high-yielding seed varieties, and better training for farmers in integrated pest and water management. With targeted interventions, Pakistan can narrow its yield gap, enhance productivity, and strengthen its position in both domestic and international vegetable markets.

Export Performance and Market Dynamics

Pakistan’s vegetable exports have shown remarkable progress in recent years, reflecting growing demand for its fresh produce in international markets. According to the Trade Development Authority of Pakistan (TDAP, 2024), export earnings surged from USD 300 million in FY 2023 to USD 430 million in FY 2024, marking a notable 43% increase within a year. Major destinations for Pakistani vegetables include the United Arab Emirates, Saudi Arabia, Malaysia, Qatar, and the United Kingdom markets that value Pakistan’s proximity, competitive pricing, and seasonal advantage. Among the top export commodities are onions, potatoes, and chilies, which together account for more than two-thirds of total vegetable exports. This growth underscores the potential of the sector to contribute significantly to foreign exchange earnings and rural income generation.

However, the growth trajectory remains unstable due to multiple structural and policy-related challenges. Frequent export bans during periods of domestic supply shortages create uncertainty among international buyers and damage Pakistan’s reliability as a supplier. Additionally, 25–40% of total vegetable production is lost post-harvest due to poor handling, inadequate cold chain facilities, and inefficient transportation systems (World Bank, 2023). These losses sharply limit the volume of exportable produce and reduce farmer profits.

In a regional context, Pakistan’s performance remains modest compared to neighboring countries. India’s vegetable exports, valued at USD 1.87 billion, and Iran’s at USD 1.02 billion (International Trade Centre, 2024), far surpass Pakistan’s figures. These competitors benefit from advanced processing facilities, quality certification systems, and strong branding strategies. Nonetheless, Pakistan’s diverse agro-climatic zones offer a distinct advantage in producing off-season vegetables for Gulf and European markets. To fully realize this potential, investments are urgently needed in cold storage, packaging, value addition, and internationally recognized quality certification systems that can strengthen Pakistan’s position in the global vegetable trade.

Key Constraints and Challenges in Pakistan’s Vegetable Export Sector

Despite the strong potential of Pakistan’s vegetable sector, its growth and global competitiveness are constrained by a series of structural, institutional, and policy-related barriers. One of the most pressing issues is high post-harvest losses, with estimates suggesting that up to 40% of total production is wasted each year (World Bank, 2023). These losses occur primarily due to poor harvesting practices, lack of cold storage facilities, and the absence of modern packaging and transportation systems. Such inefficiencies not only reduce the exportable surplus but also erode the profitability of smallholder farmers, who already operate on thin margins.

Another major obstacle is non-compliance with international Sanitary and Phytosanitary (SPS) standards. Only a small percentage of farms in Pakistan are certified for Good Agricultural Practices (GAP), and the country’s testing laboratories lack the technical capacity and international accreditation required for high-value markets like the EU or Japan. Consequently, shipments are frequently rejected or downgraded, undermining Pakistan’s credibility in global trade.

Limited access to finance further constrains productivity and export readiness. Most small-scale farmers are unable to secure affordable credit for quality seeds, irrigation systems, and compliance certifications. Similarly, fragmented market information systems mean that farmers and exporters lack real-time data on international demand, price trends, and evolving regulatory standards.

Finally, inconsistent trade policies, particularly the sudden imposition of export bans during domestic shortages, disrupt supply chains and damage long-term buyer relationships. Such unpredictability discourages investment and weakens Pakistan’s standing in global markets.

Addressing these interconnected challenges through infrastructure upgrades, financial inclusion, farmer training, and stable trade policies is essential to unlock the full export potential of Pakistan’s vegetable sector and position it as a reliable supplier in regional and international markets.

Policy Recommendations and Projected Economic Impact

Unlocking the true potential of Pakistan’s vegetable sector requires a coordinated, evidence-based, and multi-dimensional policy framework that simultaneously addresses infrastructure deficits, quality assurance, finance, and market positioning. First, modernizing supply chain infrastructure should be prioritized through targeted incentives for public-private partnerships (PPPs). The establishment of cold storage facilities, pack houses, and refrigerated transportation near production zones in Punjab, Sindh, and Khyber Pakhtunkhwa would drastically reduce post-harvest losses, currently estimated at 30–40%.

Second, enforcing quality and certification regimes is vital to enhancing export competitiveness. Government support in subsidizing Good Agricultural Practices (GAP) and Global G.A.P. certifications for smallholder farmers would promote compliance with international standards. Equally important is the upgrading of federal and provincial Sanitary and Phytosanitary (SPS) laboratories to internationally accredited levels, ensuring product safety and minimizing export rejections.

To strengthen farmers’ financial capacity, tailored credit products must be developed through partnerships between commercial and microfinance banks, supported by credit guarantee schemes. These would enable investments in modern irrigation, improved seeds, and compliance certifications. Simultaneously, enhancing research and development (R&D) within provincial agricultural institutes should focus on developing high-yield, climate-resilient, and disease-resistant vegetable varieties to ensure sustainable productivity growth.

A national branding initiative, such as “Pure Pakistani Produce,” can further elevate Pakistan’s image in global markets by emphasizing quality, safety, and traceability. Finally, policy stability is critical moving away from ad hoc export bans toward predictable, data-driven trade policies would restore international buyer confidence and encourage long-term partnerships.

If effectively implemented, these strategies could yield transformative results by 2030: vegetable exports reaching USD 1 billion annually, the creation of 250,000 new jobs across the supply chain, post-harvest losses reduced below 15%, and Pakistan emerging as a dependable supplier of premium-quality horticultural products in global markets.

Conclusion

Pakistan’s vegetable sector stands at a crucial turning point rich in potential but constrained by systemic inefficiencies that limit its global competitiveness. With its diverse agro-climatic conditions, year-round production capacity, and strategic proximity to high-value Gulf and Asian markets, the country has all the prerequisites to become a leading exporter of fresh and processed vegetables. However, persistent challenges such as low productivity, post-harvest losses, inadequate cold-chain infrastructure, and weak compliance with international standards continue to undermine this potential. The sector’s underperformance is not due to lack of capacity, but rather the absence of coherent policy direction, investment in technology, and institutional coordination.

The pathway forward lies in adopting a comprehensive, innovative-driven reform agenda that modernizes the supply chain, strengthens SPS and GAP compliance, facilitates access to finance, and fosters climate-smart agricultural practices. Public-private partnerships can play a transformative role in bridging infrastructure gaps and ensuring quality consistency. Simultaneously, stable trade policies and national branding initiatives such as “Pure Pakistani Produce” can enhance Pakistan’s credibility in global markets. With sustained commitment and coordinated policy implementation, Pakistan’s vegetable sector could achieve exports exceeding USD 1 billion by 2030, generate hundreds of thousands of jobs, and contribute meaningfully to rural prosperity and national economic resilience.

References: FAO; ITC; PBS; Ministry of Finance, Government of Pakistan; TDAP; World Bank; PHDEC; MNFSR.

Please note that the views expressed in this article are of the author and do not necessarily reflect the views or policies of any organization.

The writer is affiliated with MAK Agri & Cattle Farm Sultanabad (LLP), Sindh, Pakistan and can be reached at mashooqnbp@gmail.com

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