Poor storage, supply chain failures cost Pakistan $2 bn annually: Report

Pakistan is losing an estimated $2 billion annually due to high post-harvest losses, with inadequate storage facilities, weak supply chains and poor enforcement of quality standards undermining the country's agribusiness sector, a report has said. A report published in Dawn said Pakistan's food losses are among the highest in South Asia, particularly for perishable produce such as fruits and vegetables.

It further showed that inadequate post-harvest infrastructure often leaves farmers struggling to market their produce profitably. “Owing to an inadequate post-harvest infrastructure, Paki­stan’s food losses are among the highest in South Asia, particularly for perishable crops such as fruits and vegetables,” according to the report. In some cases, transportation costs and volatile prices make it economically unviable for farmers to send crops to markets, resulting in produce being discarded.

The report cited industry concerns over extreme price fluctuations faced by growers. “Syed Mehmood Nawaz Shah, President of the Sindh Abadgar Board, once likened growing vegetables to gambling. There is a lot of focus when tomatoes are Rs 500 a kg, but nobody talks when they are being sold for Rs 5 per kg, he said,” the report said. It also said that the absence of adequate cold storage infrastructure alone accounts for about $1.2 billion in annual post-harvest losses, highlighting a critical weakness in Pakistan's agricultural value chain. The multilateral lender also said the country is missing significant export opportunities due to inadequate compliance with international quality and safety standards.

Stronger enforcement and wider adoption of global certifications could help Pakistan generate an additional $2 billion to $3 billion in export earnings, it added. The report further pointed to poor waste management practices and said that Pakistan's recycling rate remains below 5 per cent, compared with 25 per cent in neighbouring India. As a result, the country forfeits around $1 billion in potential economic gains from waste-management technologies.

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