Mechanisation-led rural employment crisis

The rural areas of Pakistan are fast heading towards a larger-than-ever unemployment crisis, driven by a complex interplay of several factors, including rapid mechanisation. Given Pakistan’s historical reliance on traditional agricultural practices, its agriculture sector has lagged in mechanisation. However, recent years have witnessed significant investments in agricultural machinery by large- and medium-sized farmers thanks to their improved financial muscle. High food prices worldwide, coupled with modestly supportive policies from previous governments, have yielded positive outcomes for farmers, leading to increased profits. Additionally, service providers of agricultural machinery operating under a rent-based business model have also made considerable investments. Another contributing factor to mechanisation is corporate farming or large-scale contract farming, which the government is actively promoting.