INP-WealthPk

Govt support needed for growth of agriculture startups in Sindh

March 21, 2025

Ahmed Khan Malik

Experts have emphasised the urgent need for effective policies and government support to boost agriculture startups in Pakistan as modern technology and innovative business models could revolutionise the agricultural sector, improving farmers' livelihoods and strengthening the national economy.

They urged the government to promote agricultural research, and develop digital agricultural platforms so that farmers can benefit from modern solutions. They stressed that by cultivating barren lands, improving water management, and adopting ‘digital’ agriculture, Pakistan could significantly enhance its farm production.

"By adopting modern farming techniques, we can not only achieve self-sufficiency in food production but can also boost exports," Mumtaz Naqvi, Director of Sindh Agriculture Foundation, told WealthPK. He said that the growth of agriculture startups would stabilise the rural economy and create millions of jobs.

He called for the government, private sector, and educational institutions to collaborate in establishing agriculture innovation centres, where young entrepreneurs can be trained in modern agricultural technologies. "Pakistan's agricultural future depends on agriculture startups, and if we fail to seize this opportunity, we will fall behind in the race for progress," he warned. Naqvi said that agriculture is the backbone of Sindh’s economy, contributing significantly to employment and food security.

“However, despite its potential, the agricultural sector faces numerous challenges, particularly for agriculture startups that aim to bring innovation and efficiency to farming practices.” He proposed that Sindh government should introduce low-interest loans, grants, and venture capital funds specifically for agriculture startups, and tax exemptions and subsidies on agricultural machinery and technology can encourage adoption and investment.

Nizamuddin Palejo, Director of Agriculture Research, Sindh, said that agriculture startups face numerous issues. He pointed out that agriculture startups often struggle to secure funding due to the high-risk nature of agriculture. “Banks and financial institutions are reluctant to offer loans due to unpredictable weather conditions, market volatility, and the absence of collateral from small-scale entrepreneurs.”

“Also, poor infrastructure, including inadequate roads, cold storage facilities, and irrigation systems, hampers agricultural productivity. Startups dealing in agriculture-tech solutions, farm-to-market logistics, and precision farming require better infrastructure to operate efficiently,” he underscored. Palejo noted that many farmers in Sindh still rely on traditional farming techniques, leading to low yields and inefficiencies.

“Agriculture startups that introduce modern technology, such as smart irrigation, soil health monitoring, and drone-based surveillance, need government support to promote widespread adoption,” he stressed. He also pointed out that bureaucratic red tape and complex regulatory procedures make it difficult for startups to register, obtain licences, and access government schemes. “A more streamlined regulatory framework is necessary to encourage investment and entrepreneurship in the agricultural sector,” he said.

He added that agriculture startups often struggle to connect with buyers, suppliers, and international markets. “Middlemen dominate the agricultural supply chain, reducing profits for farmers and entrepreneurs. Direct-to-market platforms and government-supported e-commerce initiatives could help bridge this gap.” He said that Sindh’s agriculture sector has immense potential, but without strong government support, agriculture startups will struggle to overcome existing challenges.

“By providing financial assistance, infrastructure development, technological promotion, streamlined regulations, and better market access, the Sindh government can foster an environment where agricultural entrepreneurship flourishes. This, in turn, will lead to higher productivity, increased rural employment, and a more resilient agricultural economy.”

Credit: INP-WealthPk