Aurangzeb outlines agro-financial reforms, climate resilience to boost private sector growth and exports
In Washington, on the sidelines of the IMF and World Bank Annual Meetings, Finance Minister Muhammad Aurangzeb addressed a high-level World Bank panel titled “AgriConnect: Farms, Businesses and Financing for Jobs”, highlighting Pakistan’s efforts to modernize its agricultural sector while addressing climate risks.
Aurangzeb began by highlighting the central role of agriculture in Pakistan’s economy, contributing almost a quarter of GDP and supporting millions of smallholder farmers with less than five hectares. He stressed that policy would shift from direct control to facilitation, allowing the private sector to drive growth in areas where it can be more effective.
He detailed pilot programs currently underway, providing seeds and fertilizer, offering agronomic services and using satellite crop monitoring to help farmers increase yields while reducing their reliance on middlemen.
To intensify these efforts, the minister called on the financial sector to intervene, by offering first loss guarantees, subsidized loans and unsecured credits to small businesses and farmers.
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On climate resilience, Aurangzeb highlighted the urgency of adapting to extreme weather events, such as the recent floods which severely affected the rice harvest. He noted that one-third of Pakistan’s 10-year National Partnership Framework with the World Bank is dedicated to climate action and decarbonization. Financial resources exist, he said, but deployment must accelerate to meet evolving challenges.
Investing in capacity building, the government sent around 1,000 Pakistani students to China for advanced training in agricultural research, mechanization and modern farming methods. In response to questions, Aurangzeb reaffirmed his commitment to deregulation and incentivizing private investment in infrastructure such as cold chains, warehousing and value-added processing.
Learn more: Aurangzeb lands in Washington
He also highlighted the export potential of key crops, forecasting rice exports of around $3.5 billion for the current year. In his concluding remarks, the minister expanded the definition of agriculture’s impact, stating that when the entire value chain is included, the sector contributes almost 40 percent of GDP.
Earlier in Washington, Aurangzeb also attended the G24 ministerial meeting, where he highlighted Pakistan’s macroeconomic stability, crediting structural reforms in the areas of taxation, energy and privatization, while thanking the IMF and the World Bank for their support for tariff reforms and cross-border trade initiatives.
