The Green Initiative, launched by the Government of Pakistan, encompasses a two-pronged strategy. Firstly, to cultivate arable land with the current target being 1 to 1.5 million acres of new land, and secondly, to enhance the productivity of the existing 50 million acres of cultivated land through conventional farming.
Green Pakistan Initiative builds on the concept of corporate farming. Pakistan is a large country, with a population of more than 230 million people. Just ten to fifteen years ago, we were producing grains and food more than our requirement and we were a net exporting country, but in the last ten years or so, it has started to tilt the other way round. Today, food security has become a big challenge. There was a thought that we must do something to contribute to the food security in Pakistan because the challenge of food security connects to our national security as well.
When the war between Russia and Ukraine began, along with disruptions in Africa, we faced challenges as our sources of cheap grain imports were being choked. Fauji Foundation, a welfare organization in Pakistan, initially considered initiating large-scale farming to cultivate arable land. This idea materialized when General Syed Asim Munir assumed the role of Chief of the Army Staff and decided to expand the project, giving rise to the Green Pakistan Initiative (GPI) concept.
The Green Initiative, launched by the Government of Pakistan, encompasses a two-pronged strategy. Firstly, to cultivate arable land with the current target being 1 to 1.5 million acres of new land, and secondly, to enhance the productivity of the existing 50 million acres of cultivated land through conventional farming. That is what actually makes Green Pakistan Initiative.
The objectives of this initiative are not difficult to achieve. Actually, we have seen in the past two decades that a number of countries have carried out corporate farming on such a large scale. There are similar projects underway around the world, including in countries like Egypt, China, Brazil, and several African nations. The primary challenge we are currently facing is the need for sufficient financial resources. This is because we require large-scale machinery to carry out operations on the magnitude we are planning, and such equipment is not currently available in Pakistan. Acquiring these large and efficient machines is essential to achieving our objectives. However, the country is currently grappling with foreign exchange issues, and various models are being considered to address this challenge.
FonGrow is a project of Fauji Foundation, primarily focused on food and agriculture. However, it is important to note that FonGrow is just one part of the broader Special Investment Facilitation Council (SIFC), which encompasses five key sectors. These sectors include mining and minerals, where investments are being sought. Another promising sector is IT, which offers significant potential for Pakistan. Additionally, energy and defense production are also among the areas of focus.
SIFC represents a whole-of-government approach to Pakistan's development and is co-chaired by the Minister of Planning and Chief of the Army Staff. In discussions with some countries, it became clear that potential investors desired an organization that could provide continuity and security for their investments in Pakistan. This is why the Pakistan Army has joined in. Historically, the army has willingly contributed to projects of national importance and nation-building. Currently, Pakistan Army experts, operating as a small team, are leading this initiative and facilitating the corporate sector's involvement. This mechanism is aiding in policy improvements and all other necessary steps to enhance and modernize our traditional agriculture.
FonGrow, as part of the Fauji Foundation, conceived a new business line aimed at contributing to food security in Pakistan. Since the Fauji Foundation was already involved in the food and agriculture sector, the idea was to integrate corporate farms and related businesses into its operations. This initiative consists of five stages:
Prioritizing farming as Pakistan's foremost initiative.
▪ Simultaneously launching seed development initiatives.
▪ Establishing an agriculture services company.
▪ After establishing the farms, Pakistan plans to create the concept of agro-industrial complexes, facilitating value addition industries that will generate employment opportunities. Instead of solely exporting the grains it produces, the country will engage in value addition.
▪ The fifth step involves introducing finished products into the market within and beyond Pakistan, maximizing the advantages of this approach.
The corporate model is based on a 60/40 structure, where 60 percent of the crops will directly contribute to Pakistan's food security. As a business model, it includes a provision to export 40 percent of the production. We are already engaged in the Gulf market and have received significant demand from China. These are the two markets where the country currently exports its production. As production increases, we plan to explore additional markets where we can achieve better returns.
In the pursuit of contributing to SIFC and introducing new technologies to the GPI, numerous countries have been visited to explore available models. It has become evident that countries that have achieved significant agricultural success, such as European and Gulf nations, Australia, and China, have embraced technology.
There is an abundant untapped potential in Pakistan that will be harnessed through the platform of SIFC. This presents a significant opportunity for Pakistan, as there are approximately seven to eight million acres of land that can be utilized for agriculture and food security. The GCC countries import around 78 million tons of wheat every year, with most of it originating from non-OIC countries. Pakistan is already engaged with some Gulf countries such as Saudi Arabia, Qatar, Bahrain, and the UAE. At the corporate level, it has established partnerships with renowned companies like Hassad, Al Dhara, Saleh, and Al Khorayef in Saudi Arabia. Several models are being followed:
▪ The Corporate Model. This is a win-win model that allows countries to make direct investments. Both countries will have an equal stake at the corporate and government levels, forming a joint company.
▪ Tripartite Model. Another model that we have proposed and are currently working on with Saudi Arabia and the UAE is a tripartite model. In this model, we export the required produce to them for animal feed, which aligns with their current priorities. With the foreign exchange earned, we purchase equipment from Gulf-based companies. To support this initiative, we are seeking assistance from organizations such as the OIC's Islamic Organization for Food Security (IOFS) and others.
The SIFC platform is open to all types of agreements, whether it be Government-to-Government (G2G), Business-to-Business (B2B), or Government-to-Business (G2B). It presents an opportunity for all stakeholders. Pakistan, due to its proximity compared to South America, Africa, and Australia, offers the most convenience.
When it comes to agricultural produce, there is typically no significant issue because there is always a shortage of food supply for various crops at any given time. However, there is an issue related to the supply chain, as Pakistani brands are not very well-known globally. Nevertheless, Fauji Cereals, one of Pakistan's products, has gained recognition in Gulf countries, and we are currently receiving orders from them.
The GPI is a comprehensive package that includes import facilitation, subsidy assistance, and support for the entire agriculture sector in Pakistan. Despite international factors and rising inflation leading to increased input costs, the overall cost of production has also risen. Feasibility studies suggest that agriculture on this scale remains profitable. Unlike industrial products, agricultural incomes are calculated over an extended period. Some individuals calculate their income over ten years, while others prefer eight or five years. Generally, a five-year income calculation is common because even with all the right practices, nature still plays a role. It's widely believed that farmers experience good yields in the initial two years, followed by two average or poor years, with the fifth year being unpredictable, resulting in a balanced five-year average.
In the pursuit of contributing to SIFC and introducing new technologies to the GPI, numerous countries have been visited to explore available models. It has become evident that countries that have achieved significant agricultural success, such as European and Gulf nations, Australia, and China, have embraced technology. In contrast, agriculture in Pakistan predominantly remains conventional, resulting in inefficiencies in irrigation, production, sowing, and harvesting systems. For instance, we lose approximately two million tons of wheat each year due to inadequate harvesting technologies. This translates to a loss of nearly 20 percent, equivalent to billions of rupees. In contrast, the current harvesters manufactured worldwide have a grain loss parameter of less than one percent.
We face a grain shortage of three million tons every year, a gap that can be bridged through improvements in our irrigation system, planting methods, crop management, harvesting, and post-harvest processes. Currently, Pakistan lacks an effective post-harvest management system. Presently, Pakistan is developing a strategic storage model in which we retain our crops and only sell them when we can secure better rates.
As a developing country, we are confident that our model will succeed, as it has already begun to yield results. Pakistan has already developed 2,500 acres of land and has successfully cultivated three crops. Other countries have also endorsed our approach and methodology, and it is only a matter of time before it becomes a model followed by other nations.
The author is a PhD scholar in Management Sciences with extensive experience in Project Management.
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