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UAE’s growing interest in Pak agri sector

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THE COVID-19 pandemic disrupted global food supplies, affecting the food security of the Gulf Cooperation Council (GCC) countries. The GCC, with a population of 58.86 million, heavily relies on food imports due to limited arable land. The UAE, for instance, has only 1,600 square kilometres of arable land, meeting just over 20% of its food needs. To accommodate its growing population, expected to reach 11.5 million by 2025, the UAE is exploring agricultural land options in Pakistan.

The Gulf countries rely on foreign sources for 85% of their food, making them vulnerable to supply disruptions. For instance, when India banned rice exports in July 2023, it prompted a 40% rise in regional rice prices. As a response, the UAE is introducing a Food System and Agricultural Agenda at COP28 in November 2023, aiming to centralize food security within the climate platform and gain support from key stakeholders.

Pakistan, an agrarian nation, offers opportunities for Gulf countries due to its comparative advantage in producing low-cost food items. It can meet domestic and UAE needs. Pakistan is a potential market for Gulf rice exports, considering India’s reduced exports to fulfill domestic demand. The UAE, as the 16th largest rice importer, imported $484 million worth of rice in 2021, including a significant amount from India.

Former Prime Minister of Pakistan, Shehbaz Sharif, suggested on July 10, 2023, that Gulf countries annually import $40 billion worth of agricultural products. He proposed that Pakistan, under the oversight of the newly established Special Facilitation Investment Council (SIFC), should aim to fulfill this demand from the GCC states, with SIFC streamlining investment for Gulf region investors.

Currently, the agricultural sector of Pakistan is suffering as a result of the devastation caused by the flash floods in 2022. The International Rescue Committee reported that the floods destroyed almost 65% of the country’s main crops along with 70% of its rice. Moreover, the post-disaster assessment by the UN Food and Agriculture Organization (FAO) suggests that 14.6 million people in Pakistan are in need of food security. In the light of Pakistan’s food insecurity due to climate challenges and population growth, it’s imperative to take action. Currently, the agricultural sector contributes 23% to the country’s GDP and employs 37.4% of its workforce, with Punjab playing a significant role in food production. However, existing food production falls short of meeting the demands of Pakistan’s growing population. To address this, there is an urgent need to harness nearly nine million hectares of uncultivated land through modern farming techniques, infrastructure development and attracting foreign investment.

Pakistan, with military assistance, has initiated the Land Irrigation and Management System (LIMS) to promote sustainable agricultural practices. Launched on 7 July 2023, the project seeks to boost agricultural production and reduce dependence on imported food. LIMS involves constructing irrigation canals for storing floodwater to support farmers and offers real-time weather and soil quality data to enhance irrigation precision. UAE’s investment can boost Pakistan’s agriculture, enhance food security and offer a long-term solution for both nations. Pakistan should seize this opportunity and avoid past ineffective policies.

—The writer is associated with the Centre for Afghanistan, Middle East and Africa at the Institute of Strategic Studies Islamabad (ISSI).

Email: [email protected]

views expressed are writer’s own.

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