Agriculture in the country remains heavily dependent on small-scale farmers, with nearly 27 million acres cultivated on landholdings of six acres or less. This fragmented system hampers efficiency, making it difficult to adopt modern technology and advanced farming techniques. As a result, productivity remains low, and the sector struggles to compete on a global scale.

In this context, corporate farming has emerged as a potential solution, promising increased efficiency, higher yields, and economic benefits. However, while corporate agriculture presents opportunities for modernization and investment, concerns persist over its impact on small farmers and rural communities.

The government’s recent push to corporatize agriculture—by leasing unused state land to private companies and individuals for irrigation and cultivation—has sparked significant debate and resistance. Concerns are mounting that corporate farming could sideline small-scale farmers, consolidating control over agricultural resources in the hands of a few powerful entities known for exploitative practices. Critics fear that this shift may deepen existing inequalities, making it harder for traditional farmers to compete.

However, despite these reservations, corporate farming could also bring much-needed modernization to an agricultural sector that has long struggled with inefficiency and stagnation. Agriculture remains a cornerstone of Pakistan’s economy, providing livelihoods—both directly and indirectly—to nearly 70 percent of the population. With 37.4 percent of the workforce engaged in the sector, its success is critical to economic stability. Yet, longstanding issues such as skewed land ownership, outdated techniques, water shortages, and resistance to technological advancements have stunted its growth. These challenges have led to inefficiencies, low productivity, food insecurity, and declining competitiveness in global markets. To secure a sustainable future, Pakistan must embrace modernization.

Dismissing corporate farming outright ignores the deeply entrenched problems in the sector. The absence of comprehensive land reforms has allowed vast tracts of land to remain under the control of large feudal landlords, leaving small farmers and laborers vulnerable to exploitation. Moreover, the industry remains largely unmechanized, with outdated methods like hand-harvesting leading to contamination, poor seed quality limiting yields, and inefficient flood irrigation depleting water resources. These factors have long hindered agricultural output and export potential.

Despite these structural challenges, agriculture showed impressive growth in FY2024, expanding by 6.2 percent. Increased investment, better access to credit, and favorable weather contributed to this positive trend. Early indicators—such as rising machinery sales and improved water availability—suggest that the sector may continue to strengthen in the coming years.

While corporate farming is not a one-size-fits-all solution, it presents an opportunity to introduce efficiency, innovation, and investment into a sector that desperately needs reform. The challenge lies in ensuring that modernization benefits all stakeholders, rather than deepening existing inequalities.

An analysis of agricultural practices in the country reveals that nearly 27 million acres of farmland are cultivated by small farmers on plots of six acres or less. This fragmented landholding pattern results in inefficient use of resources and poses significant challenges in adopting modern farming techniques, advanced machinery, and technology—ultimately stifling productivity.

This is where corporate farming presents a strong case. With larger landholdings and greater financial capacity, corporate farms can drive down per-unit production costs, boost yields, and increase profitability by investing in modern equipment, bulk purchasing, and specialized labor. These advantages create economies of scale that smaller farms struggle to achieve.

Moreover, increased investment in infrastructure, advanced technology, and modern irrigation methods such as drip irrigation—along with research and development—can have broader benefits beyond corporate farms. As competition grows, non-corporate farms may be encouraged to modernize their practices, potentially improving overall agricultural efficiency. This shift could help the country enhance food security and transition towards becoming a net exporter of agricultural goods.

Another key advantage lies in taxation. With provincial governments now required to tax agricultural incomes under IMF directives, and corporate farms subject to corporate income tax, the expansion of the sector could significantly boost tax revenues. While provincial authorities have been slow to enact agricultural tax legislation, mounting pressure from the IMF and the potential for increased revenue could eventually push them to introduce necessary reforms.

However, for corporate farming to be successful and widely accepted, the government must implement safeguards to address public concerns. Transparent land allocation, protection of small farmers’ rights, and ensuring that increased agricultural productivity benefits local communities—through job creation, improved infrastructure, and access to modern farming techniques—are essential.

Lessons from other countries, such as India, highlight the risks of corporate farming, where large-scale ventures have led to land grabs and the displacement of small farmers. Rather than rejecting corporate farming outright, a balanced approach is needed—one that enforces strict regulations to prevent exploitation, safeguards small farmers, and promotes sustainable agricultural development that benefits all stakeholders.

The expansion of corporate farming could bring much-needed advancements to the agricultural sector, fostering efficiency, investment, and economic growth. However, without proper regulations and safeguards, it risks marginalizing small farmers and creating new economic disparities. A balanced approach is necessary—one that encourages modernization while ensuring fair land distribution, farmer protections, and inclusive development. If implemented thoughtfully, corporate farming has the potential to transform agriculture into a more productive and globally competitive industry while safeguarding the interests of local communities.