Imposition of Agri tax from Jan 2025: Experts urge need to engage rural youth in agr

[Business Recorder]

Imposition of Agri tax from Jan 2025: Experts urge need to engage rural youth in agr

ISLAMABAD: Leading agriculture experts Saturday strongly recommended that there is an urgent need to engage rural youth in agricultural productive activities after imposition of Agri tax from January 2025.

Taking to media at the National Press Club here on Saturday, Khan Faraz, an agro expert informed that with limited income opportunities from farming, many are at risk of drifting towards illegal or unproductive paths. Therefore, policymakers must address this growing aspiration gap as Pakistan is an agricultural country.

Agriculture is the mainstay of the country’s economy. Agriculture contributes around 23 percent to the GDP and employs 33.4 percent of the country’s labour. About 70 percent of the country’s exports are directly or indirectly derived from agriculture.

Khan Faraz said they low landholding has emerged as a major challenge in the rural regions of Pakistan. In 1990, the average landholding in the country was approximately five hectares (12.4 acres). Today, that figure has shrunk to around three hectares (7.4 acres).

This decline is compounded by significant land inequality. While a few large landlords control the majority of the land, many smallholders now own less than one hectare. For rural populations heavily reliant on agriculture, high fertility rates and the division of family land among heirs have led to increasingly smaller farm sizes, leaving many families in economic distress as alternative income sources remain scarce.

Also, inheritance practices, urbanization has contributed to the problem, with agricultural land being converted into housing and commercial developments. Land fragmentation is another persistent issue, further exacerbated over time.

Small landholdings struggle to achieve economies of scale, severely affecting agricultural productivity. Farmers operating on small plots often cannot afford modern machinery or technology, making their operations less efficient compared to larger farms. The high cost of production per unit for smallholders reduces profitability and competitiveness. Also, climate change disproportionately affects smallholders compared to large landholders.

In view of the above, there is an urgent need to engage rural youth, most of whom are under the age of 30, in productive activities. With limited income opportunities from farming, many are at risk of drifting towards illegal or unproductive paths. Therefore, policymakers must address this growing aspiration gap -- the disparity between what individuals hope to achieve and the opportunities available in their communities, agricultural expect added.

Source: Business Recorder, 2024

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