Rural Poverty in Pakistan: Agriculture and Food Security

Explore how agriculture in Pakistan can help reduce rural poverty in Pakistan and strengthen food security. Learn why fair market returns, affordable credit, reliable infrastructure, sustainable water management, climate resilience, and diverse rural livelihoods are essential for lasting progress.

POLICY BRIEFS

Nadeem Riyaz

10/22/2026

an old man with a white turban on his head

At the edge of his ruined field, a farmer stands in silence. The crop he nurtured for months, borrowing money for seeds, fertilizer, pesticides, and diesel, lies flattened by unseasonal rain. The harvest that was supposed to feed his family and repay his debts has vanished. His eyes fill with tears as he surveys the damage. For him, this is not merely a failed crop; it represents a year's labour lost, mounting financial obligations, and the uncertainty of how he will feed his family until the next planting season.

For millions of rural Pakistanis, such hardship is not an isolated tragedy but part of a recurring cycle. Uncertain harvests, rising input costs, limited access to markets, inadequate storage facilities, and weak financial protection keep many farming households trapped in poverty. Agriculture feeds the nation, supplies raw materials to industries, and sustains millions of livelihoods. Yet those who work the land frequently struggle to earn a stable income. This is the central paradox of Pakistan's agricultural economy: a sector with enormous productive potential that continues to coexist with widespread rural deprivation.

The figures cited from the Pakistan Economic Survey 2025–26 highlight the scale of the challenge. National poverty reportedly reached 28.9 per cent in 2024–25, while rural poverty stood at 36.2 per cent, compared with 17.4 per cent in urban areas. Provincial poverty rates were reported at 23.3 per cent in Punjab, 32.6 per cent in Sindh, 35.3 per cent in Khyber Pakhtunkhwa, and 47 per cent in Balochistan. These figures represent entire populations rather than farmers alone, but they illustrate the substantial disparities affecting rural communities.

Behind these statistics lie structural challenges, including unequal land ownership, water scarcity, limited agricultural credit, inadequate extension services, and farmers' weak bargaining power in agricultural markets. Climate change compounds these difficulties through floods, droughts, heatwaves, and unpredictable rainfall, making agricultural incomes increasingly uncertain.

The fundamental question is not simply why agricultural production falls short of its potential, but why those who cultivate the land so often fail to share in its rewards. Addressing rural poverty requires policies that connect agricultural productivity with fair market returns, climate resilience, better infrastructure, and sustainable livelihood opportunities. Only then can agricultural growth translate into secure and dignified lives for Pakistan's rural population.

Provincial Differences, Shared Rural Challenges

Punjab is Pakistan’s agricultural heartland, yet its relatively advanced farming sector has not eliminated rural poverty. Small and fragmented landholdings, rising input costs, expensive agricultural machinery, and farmers’ weak bargaining power often limit profitability. Inefficient irrigation practices and declining groundwater reserves threaten long-term productivity, while tenant farmers and landless agricultural labourers face insecure incomes and limited social protection. Although commercial farming and improved technologies offer opportunities, their benefits remain unevenly distributed. The challenge is to translate agricultural productivity into equitable, sustainable rural prosperity.

In Sindh, agriculture depends heavily on the Indus irrigation system, supporting the production of rice, cotton, sugarcane, and wheat. However, unequal land ownership, insecure tenancy, and disparities in access to irrigation water restrict the economic opportunities available to many rural households. Floods, waterlogging, and soil salinity further damage farmland and reduce agricultural returns. Climate change compounds these pressures, increasing uncertainty for farming communities. Improving water governance, strengthening tenant protections, and promoting climate-resilient agriculture are essential for reducing rural deprivation.

Khyber Pakhtunkhwa presents a different set of challenges, shaped by mountainous terrain, small farms, and dependence on rainfall in many districts. Horticulture, livestock, and other agricultural activities provide important income opportunities, but inadequate roads, storage facilities, processing infrastructure, and market connections frequently reduce farmers’ earnings. Limited access to agricultural credit, veterinary services, and extension support further constrains productivity. Strengthening value chains and connecting smallholders with reliable markets could help transform agricultural potential into more stable livelihoods.

Balochistan faces particularly severe constraints because of its arid climate, scattered settlements, and scarce water resources. Rural households depend on livestock, rain-fed farming, and groundwater-based agriculture, leaving them vulnerable to drought and irregular rainfall. Excessive groundwater extraction threatens long-term agricultural sustainability, while poor infrastructure and high transportation costs restrict access to markets and essential services. Sustainable water management, drought-resilient farming, improved livestock services, and alternative income opportunities are therefore critical.

Despite their differences, all four provinces share a fundamental challenge: agricultural activity does not automatically guarantee rural prosperity. Addressing poverty requires region-specific policies that improve resource access, strengthen farmers’ market power, expand rural infrastructure, and protect vulnerable households against economic and climate-related shocks.

Breaking the Cycle: From Diagnosis to Action

Despite provincial differences, Pakistan faces a shared challenge: translating agricultural productivity into secure and equitable rural incomes. Addressing rural poverty requires moving beyond production targets to improve the livelihoods of smallholders, tenant farmers, and landless agricultural workers.

For many small farmers, rising costs of seeds, fertilizers, machinery, and energy reduce profitability. Limited access to affordable credit, quality inputs, modern technology, and agricultural advice further restricts productivity. Weak bargaining power often forces farmers to sell produce at unfavourable prices. Accessible credit, crop insurance, reliable extension services, and timely market information can help farmers manage risks, improve yields, and avoid falling into debt after crop failures.

Sustainable water management is equally important. Efficient irrigation, improved drainage, groundwater conservation, and rainwater harvesting can protect agricultural resources where conditions permit. Climate-resilient crop varieties, diversified farming systems, and effective early-warning mechanisms can reduce losses from floods, droughts, and extreme temperatures. Strengthening rural resilience is essential to prevent temporary agricultural shocks from developing into persistent poverty.

Farmers must also receive a fairer share of the value generated by their produce. Inadequate storage, cold-chain facilities, processing units, and rural roads contribute to post-harvest losses and increase dependence on intermediaries. Investing in these facilities, strengthening farmer cooperatives and producer organizations, and improving market transparency can increase bargaining power, expand market access, and improve farm-gate prices. Greater investment in agro-processing can also create rural employment beyond primary production.

Policy interventions must reflect provincial conditions. Punjab needs improved smallholder profitability, efficient irrigation, and sustainable groundwater management. Sindh requires stronger flood protection, better drainage, and greater security for tenant farmers and agricultural workers. Khyber Pakhtunkhwa could benefit from stronger horticultural and livestock value chains, improved storage, and better rural connectivity. Balochistan must prioritize water conservation, drought preparedness, and resilient livestock-based livelihoods.

Ultimately, reducing rural poverty requires coordinated investment in agricultural infrastructure, human development, social protection, and inclusive rural institutions. Provincial governments should establish measurable targets and monitor whether interventions improve household incomes and economic security. Agricultural success must be measured not only by what farms produce, but also by whether farming families can earn decent incomes, withstand economic shocks, and build better futures for their children.

Beyond Farming: Building Secure and Diversified Rural Livelihoods

Agricultural production alone cannot provide adequate employment or stable incomes for every rural household. Pakistan must diversify rural economies by promoting food processing, dairy production, livestock value chains, fisheries, handicrafts, and small enterprises that create employment close to home. Developing rural industries can reduce dependence on seasonal agricultural earnings while generating additional value from locally produced raw materials. Investment in education, vocational training, digital connectivity, and affordable finance can also expand opportunities for young people beyond traditional farming.

Women must be central to this transformation. Despite their substantial contributions to agriculture and household livelihoods, many rural women face barriers to land ownership, credit, technology, training, and market participation. Improving their access to productive resources, entrepreneurship support, and digital financial services can strengthen household incomes and promote more inclusive rural development.

Agricultural reform must also be complemented by effective social protection. Cash assistance, accessible healthcare, quality education, and timely disaster relief can prevent crop failures, livestock losses, or sudden income reductions from pushing vulnerable households into prolonged poverty. Crop insurance, emergency financing, and targeted assistance can provide additional protection against climate-related shocks. Such interventions cannot replace productive employment, but they can offer a vital safety net while families rebuild their livelihoods.

For the farmer watching his harvest disappear, the consequences extend far beyond a ruined crop. Lost income can mean unpaid loans, reduced food consumption, interrupted education, and uncertainty about the family's future. Across Pakistan, millions of rural households face similar insecurities, although the underlying challenges vary across provinces.

The task is therefore not simply to increase agricultural output, but to ensure that its benefits reach those who depend on the land. More profitable farming, fairer market access, sustainable resource management, climate resilience, and diversified employment must become integral to Pakistan's rural development strategy.

Ultimately, agricultural success should be measured not only by production volumes but also by farmers' incomes, household security, and opportunities for future generations. Pakistan's agricultural potential will remain incompletely realized until the people who cultivate its land can earn a dignified living, withstand economic shocks, and escape the persistent cycle of rural poverty.

Conclusion

Rural poverty in Pakistan cannot be overcome by increasing agricultural production alone. Smallholders, tenant farmers, and landless workers need fair market returns, affordable credit, reliable infrastructure, sustainable water management, and protection against climate-related shocks. Provincial strategies must address local challenges while ensuring that vulnerable households have access to education, healthcare, social protection, and diversified livelihood opportunities. Investments in agro-processing, livestock value chains, rural enterprises, and women's economic participation can create employment beyond traditional farming and reduce dependence on uncertain harvests. Equally important, transparent markets, effective agricultural institutions, and targeted support must ensure that the benefits of agricultural growth reach those who produce the nation's food. Ultimately, Pakistan must measure agricultural success not only through yields and production volumes but also through farmers' incomes, household food security, and resilience to economic and environmental risks. Only when rural families can earn a dignified living and build secure futures will the country's agricultural potential translate into lasting poverty reduction.

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 a former Pakistan Ambassador and Permanent Representative to FAO, WFP and IFAD and can be reached at nriyaz60@gmail.com

Rural Poverty in Pakistan: Agriculture and Food Security

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