The conversation about Pakistan’s economic state continues to be dominated by pessimism — sluggish growth, rising poverty, slow export expansion, and growing dependence on imports. These concerns reflect longstanding policy weaknesses. Yet they obscure an important reality: in sectors where Pakistan possesses comparative advantages in natural resources and human capital, parts of the private sector are already driving growth, job creation and export diversification.
The binding constraint is policy fragmentation that prevents successful models from scaling and delivering economy-wide impact.
Agriculture — bridging the credit gap
Agriculture remains the backbone of Pakistan’s economy, employing more than a third of the workforce and supporting millions more indirectly. Where farmers gain access to capital, technology and expertise, outcomes improve markedly. Yet a stark imbalance persists. Nearly 60 per cent of bank deposits originate from rural and semi-urban areas dominated by agriculture, but less than 10pc of private-sector credit flows to the sector.
Encouragingly, parts of the financial sector are rethinking how agriculture is financed. Initiatives such as HBL Zarai represent a shift from traditional collateral-based lending to value-chain financing, bundling credit with agronomic advice, digital tools and market access. The Bank of Punjab has also expanded agricultural lending programmes, while crop insurance is emerging to manage climate and lending risks.
Despite policy shortcomings, many companies in the private sector are stepping up to drive growth
Private-sector models are also addressing long-standing constraints. Farmers dependent on arthis have traditionally been forced to sell produce immediately after harvest, often at the lowest prices. Initiatives such as Naymat Collateral enable farmers to store crops in professionally managed silos and obtain credit against warehouse receipts, so they can sell when prices improve.
Technology is reinforcing these shifts. Engro’s UgAi platform provides weather forecasts, nutrient uptake data, and irrigation alerts that improve farm-level decision-making. Upstream, the Fatima Group’s work in seed development and crop nutrition addresses yield gaps, while the Sapphire Group’s investment in traceable cotton strengthens sustainability and export competitiveness in textile supply chains.
Mechanisation and farm productivity
Private investment is also modernising farm productivity through mechanisation. Companies such as Jaffer Brothers are introducing more advanced equipment, including combined harvesters, precision seed drills and laser land-levelling systems that significantly improve water efficiency.
Large agribusiness groups such as JDW demonstrate how mechanised farming can achieve significantly higher yields. Increasingly, private contractors are also providing small farmers with custom hiring services for farm machinery.
Integrating agricultural value chains
Further downstream, private firms are modernising agricultural value chains, reducing import dependence and creating employment.
National Foods’ tomato and chilli processing initiatives are reducing Pakistan’s reliance on imported concentrates while stabilising farmer incomes. Importantly, the company is leveraging its established brand and distribution network to anchor domestic supply chains.
A similar approach is evident in K&N’s, which has built a vertically integrated poultry operation, including retail distribution. This model — using brand strength and market reach to stimulate upstream agricultural production — is one that companies dependent on imported vegetable oils could emulate in oilseeds.
Multinationals are also strengthening agricultural ecosystems. PepsiCo contracts with farmers for potato cultivation, while Nestlé and Friesland Campina have invested in milk collection networks, cold chains and farmer training. Pakistani groups such as Nishat, Interloop, Ghani and Sapphire have also entered corporate dairy farming.
Meat processing and cold chains
Livestock accounts for nearly two-thirds of agricultural value added, yet much of Pakistan’s meat production remains informal. Private investment in modern abattoirs and cold chains is beginning to change this.
Companies such as Fauji Meat and Tazij Meats have established modern slaughterhouses and processing facilities that meet international halal certification and export standards. Developing cold-chain logistics — from refrigerated transport to modern storage facilities — remains critical for scaling exports.
Momentum Logistics of the Interloop Group plans to extend transportation of perishable foods to include meat, complementing its sister Interloop Dairies’ plans to expand into meat processing.
Minerals — emerging private participation
Pakistan’s mineral sector, long underdeveloped despite vast geological potential, is also beginning to attract private investment.
The Lucky Group, traditionally associated with cement and industrial materials, has entered mining ventures in the vicinity of the Reko Diq copper-gold project in Balochistan. Such initiatives signal growing private-sector interest in developing Pakistan’s mineral resources.
Skills and digitisation
Despite these efforts, human capital development remains essential to sustaining emerging sectors.
The Hunar Foundation, supported largely by the business community, is addressing the gap between education and employability by providing vocational training aligned with market demand. These programmes improve productivity and expand opportunities for Pakistan’s youth.
Digitisation is also accelerating growth. Pakistan’s information technology (IT) and IT-enabled services exports now exceed $3.5 billion annually, driven largely by private firms such as Systems Limited, NetSol and 10Pearls. Digital finance platforms such as Easypaisa and JazzCash are expanding financial inclusion while helping formalise economic activity.
Scaling success
Across agriculture, food processing, livestock, minerals and digital services, examples of private-sector innovation are visible. If policy alignment allows these emerging models to scale, Pakistan’s economic narrative could shift — from pessimism to pragmatic progress.
The author, a former CEO of Unilever Pakistan and of the Pakistan Business Council, writes on economic policies that promote sustainable and inclusive growth.
Published in Dawn, The Business and Finance Weekly, March 23rd, 2026
