Building Stronger and Sovereign Pakistan

As Pakistan celebrates another Independence Day, it is worth reflecting on what sovereignty means in the twenty-first century. It is no longer measured solely by territorial integrity or military capability. A truly sovereign nation is one that is food secure, economically resilient, financially stable and institutionally strong. It protects its borders while creating opportunities for its people, particularly its youth, whose aspirations will shape the country's future.

Pakistan has demonstrated remarkable resilience throughout its history. Despite geopolitical uncertainties, economic pressures and security challenges, the nation has preserved its independence, strengthened its strategic capabilities and developed institutions capable of safeguarding its national interests. These achievements provide a solid foundation for the next stage of national progress.

National security remains indispensable. Pakistan has maintained credible deterrence in a challenging regional environment, ensuring peace through strength. Recent conflicts elsewhere have also underscored an important lesson: military preparedness alone cannot guarantee lasting security. Sustainable national power rests equally on economic vitality, technological advancement, food security and social cohesion.

Pakistan's strategic location offers immense opportunities. Situated at the crossroads of South Asia, Central Asia, the Middle East and China, the country can serve as a vital hub for trade, energy and regional connectivity. Stronger economic cooperation with neighbouring countries, including Afghanistan, Iran and, whenever circumstances permit, India, can unlock new avenues for commerce, investment and shared prosperity.

Energy connectivity remains another strategic opportunity. Projects such as the Iran-Pakistan pipeline and the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline have the potential to strengthen Pakistan's energy security while generating transit revenues and promoting regional integration. Advancing such initiatives through constructive diplomacy would contribute to long-term economic stability.

Economic sovereignty is built upon sound fundamentals. Pakistan must continue reducing fiscal and trade imbalances while strengthening public confidence in institutions. Consistent policies, transparent governance and effective implementation are essential to creating an environment where businesses invest with confidence and innovation flourishes.

Food security deserves equal priority. Pakistan possesses fertile land, a hardworking farming community and extensive irrigation infrastructure. Yet recurring shortages of essential commodities highlight the need for modern storage facilities, efficient supply chains and timely policy decisions. Preventing post-harvest losses and improving agricultural productivity will strengthen both national food security and economic stability.

Agriculture as a whole requires renewed attention. Reviving cotton production through high-quality, disease-resistant seed varieties, modern farming practices and greater research support would benefit farmers, strengthen the textile industry and increase export earnings. Likewise, investment in value-added agriculture can transform Pakistan from an exporter of raw commodities into a supplier of high-value products.

Industrial modernization must also become a national priority. Upgrading oil refineries, encouraging technological innovation and expanding manufacturing capacity will reduce import dependence while creating skilled employment. Predictable policies and a stable regulatory environment will encourage both domestic and foreign investment, enabling industries to compete more effectively in global markets.

Pakistan's greatest asset is its people. A young and energetic population, growing digital capabilities, entrepreneurial talent and an expanding technology sector offer tremendous potential. By investing in education, vocational training, research and innovation, Pakistan can build a knowledge-based economy capable of competing in an increasingly technology-driven world.

The country's future prosperity will depend on partnerships between government, private enterprise and academia. Together they can promote productivity, encourage exports, strengthen infrastructure and create employment opportunities for millions of young Pakistanis. Sustainable economic growth will reinforce national resilience and enhance Pakistan's standing in the international community.

As the nation celebrates its independence, the objective should not merely be to preserve sovereignty but to strengthen it. Economic self-reliance, food security, technological advancement, regional connectivity and good governance are not separate goals; together they form the pillars of enduring national strength.

Pakistan has overcome formidable challenges before, and it possesses every ingredient needed to build a more prosperous future. With prudent policies, strong institutions and a shared national purpose, the country can transform its strategic advantages into lasting economic success. That is the path to a stronger, more confident and truly sovereign Pakistan.

*This article was originally published in Pakistan & Gulf Economist

 

 

Urea shortage in Pakistan a hoax call

Certain quarters have started saying that Pakistan is likely to face shortage of urea that could affect wheat production and food security in the country. Their voice gets credibility because natural gas supply to fertilizer plants will be suspended from middle of October.

They say the gap between urea production and consumption has widened, raising fears of nitrogenous fertilizer shortage up to 500,000 tons during Rabi season, especially between the critical period of October 2023 and March 2024, when wheat and other crops are sown.

The market has also begun to see price distortions, the industry is providing urea as usual but the middlemen are selling it at higher rate.

Farmers are being fleeced by middlemen, who are charging a premium up to PKR1,000 per bag above the retail price.

According to the National Fertilizer Development Center (NFDC) projections, total urea availability as of October 01, 2023, is expected to be only 69,000 tons, compared to 294,000 tons during the same period last year. During the last Rabi season, around 300,000 tons of urea was imported, but no plan has been set by the government to meet the critical requirement of farm nutrients for this season.

Some groups are asking the government to immediately import at least 500,000 tons urea and ensure its arrival in November 2023 to avoid a shortage and also ensure uninterrupted supply at full capacity keep the plants operating simultaneously.

Every year around this time Pakistan is forced to import urea. However, this year the government should continue gas supply to the fertilizer plants as the gas prices are attractive level in the international market.

For those, who may not be aware, Pakistan has an installed capacity to produce 7 million tons urea, but the manufacturers produce 6 million tons.  

There is also the responsibility of the ruling junta to also take concrete steps to stop the smuggling of fertilizer through the Western borders.

Saudi Arabia urges G-20 members to strengthen food systems

The G-20 Agriculture Ministers’ Meeting took place in Hyderabad, India. The Saudi delegation was headed by Minister of Environment, Water and Agriculture Eng. Abdulrahman Bin Abdulmohsen Al-Fadhli.

Eng. Al-Fadhli said we urge for cooperation to strengthen food systems for a better and more sustainable future.

Eng. Al-Fadhli also added that in the aftermath of COVID-19, the food and agriculture production systems worldwide continue to face numerous challenges, particularly at a time, when the demand for food for a growing population, is increasing rapidly.

“One crucial element in ensuring food security is strengthening rural communities by educating and empowering women and youth.

“Saudi Arabia in 2018, launched its flagship Sustainable Rural Development Program covering eight different areas.

“The program has proven remarkably to increase the income of our beekeepers by up to 50%, while a 10% increase in rain-fed small farmers,” Eng. Al-Fadhli added.

Eng. Al-Fadhli mentioned to the importance of responsible investment in agriculture and food Systems. Furthermore, it is required to align financing with innovation policies. By adopting these innovations, we can enhance the efficiency, resilience, and sustainability of our food sector.

Over the past five years, Saudi Arabia has increased loans for the adoption of innovative technologies by more than 10 folds.

“We think that digitalization is emerging as a key catalyst to transform the agriculture sector by improving resource efficiency, enhancing performance, and boosting productivity.

“In this regard, Saudi Arabia launched a digital extension platform, which served more than 230,000 farmers and provided 2.9 million agricultural extension services,” Eng. Al-Fadhli added.

Eng. Al-Fadhli stressed there is a need for realignment of all humanitarian programs to effectively address the most pressing food insecurity challenges.

In this regard, Saudi Arabia has demonstrated its commitment, by completing over 772 food security projects in 71 countries through King Salman Humanitarian Aid & Relief Centre.

Eng. Al-Fadhli called for work together as G20 Agriculture Ministers within the framework of SDGs for realizing the Opportunities of the 21st Century for All, for our One Future.

International Financial Institutions plan to address food insecurity

Kristalina Georgieva, Managing Director, International Monetary Fund (IMF) has made a statement following the publication of a Joint International Financial Institution (IFI) Plan to Address Food Insecurity.

Russia’s invasion of Ukraine has precipitated serious economic and social consequences around the globe. Among them, many countries are now facing dangerous food shortages and sharply higher prices for food, energy, and fertilizers. 

These pressures occur at a time when countries’ public finances are already stretched from the pandemic and public debt burdens are high. With inflation reaching the highest levels seen in decades, vulnerable households in low- and middle-income countries are most at risk of acute food insecurity. And history has shown that hunger often triggers social unrest and violence.

If we have learned one lesson from the 2007-08 food crisis, it is that the international community needs to take fast and well-coordinated actions to effectively tackle a food crisis, by maintaining open trade, supporting vulnerable households, ensuring sufficient agricultural supply, and addressing financing pressures. I am honored to have been able to work together with the heads of other International Financial Institutions to propose concrete actions. Coordination between us will be critical for the plan to have maximum impact in quickly alleviating food insecurity, especially for the most vulnerable households in the most vulnerable countries.

Working closely with the World Bank and other International Financial Institutions, the IMF will provide policy advice, capacity development assistance, and financial support to catalyze and complement financing from other institutions. The IMF is investing in its monitoring capacity to allow for timely identification of countries with the most pronounced financing pressures, especially fragile and conflict-affected states, which will particularly be affected by food insecurity.

The IMF is working with country authorities on macroeconomic frameworks and policy priorities. A critical area of focus is to assist countries in their efforts to rapidly improve social safety nets to protect vulnerable households from the imminent threat of hunger. Helping members identify ways to safeguard food security without resorting to export restrictions has been another priority. These policy objectives are reflected in the IMF’s program engagement. IMF financial support for Moldova (recently augmented to help address the harmful effects of the war) and Mozambique, for instance, includes a focus on strengthening social safety nets for vulnerable households.

The IMF will also bring to bear its new Resilience and Sustainability Trust, which will provide affordable longer-term financing for countries facing structural challenges, while countries with acute financing needs could access IMF emergency financing, where appropriate. The IMF is intensifying efforts with the World Bank and others to support debt restructurings where needed.”

Background: Following a meeting of International Financial Institutions (IFIs) and global leaders convened by the US Treasury on April 19, 2022, “ Tackling Food Insecurity: the challenges and call to action,” the International Monetary Fund (IMF), the African Development Bank (AfDB), Asian Development Bank (ADB), European Bank for Reconstruction and Development (EBRD), Inter-American Development Bank (IDB), the World Bank, and the International Fund for Agricultural Development (IFAD) have worked together to formulate a joint action plan to address food insecurity.

According to the plan, the IFIs will pursue actions to step up, surge, and scale their work across six priority goals: 1) support vulnerable people; 2) promote open trade; 3) mitigate fertilizer shortages; 4) support food production now; 5) invest in climate-resilient agriculture for the future; and 6) coordinate for maximum impact.