Opportunities and Challenges in Pakistan’s Vertical Farming Landscape – June 2024

This policy brief explores the potential of vertical farming in Pakistan, examining its benefits, challenges, and strategic recommendations for implementation. Pakistan is one of the most water-stressed countries in the world and also one of the most susceptible to climate change. These challenges mean that Pakistan has to explore innovative agricultural methods such as vertical farming where crops are grown in stacked layers within controlled environments, offering a potential solution to the country’s food security issues and environmental challenges.

Advantages and Challenges of Vertical Farming

Vertical farming optimizes land use, conserves water, reduces reliance on pesticides, and allows for year-round crop production. This method can significantly mitigate the impacts of climate change and resource scarcity on agriculture. However, high initial capital costs, significant energy consumption, technical complexity, and the need for specialized knowledge are major barriers. Additionally, the current market infrastructure, high costs of imported materials, and consumer awareness in Pakistan are not fully supportive of this agricultural model.

Countries like the Netherlands and regions such as the Gulf have successfully implemented vertical farming, driven by advanced technology, favorable policies, and a focus on sustainability. These examples highlight the potential for similar success in Pakistan with the right strategies. Despite the current challenges, vertical farming can help Pakistan reduce its dependency on imports and enhance its agricultural exports by producing high-quality, high-value crops.

Conclusions and Recommendations

Vertical farming in Pakistan shows promise, particularly for the high-end market, but faces significant challenges. Many initiatives have struggled to establish themselves locally due to competition with traditional farming prices, high capital requirements, and major financing challenges. Additionally, a lack of research and knowledge on system adaptability to Pakistan’s climate has led to numerous failures. It is essential for the government or a neutral body to collect and share information on the successes and failures of these ventures to support future efforts. Subsidized financing and the elimination of customs duty on imported greenhouse equipment are critical to making vertical farming commercially viable.

A ready market for high-quality produce is also crucial for the success of vertical farming. There is a growing domestic market willing to pay a premium for consistent supply, which some hydroponic farms have failed to deliver due to improper location and equipment. Integration with processors in horticulture value chains can ensure a stable supply and price, aiding business planning and reducing susceptibility to supply shocks. Vertical farming offers an alternative pathway to sustainable agriculture in Pakistan, providing economic opportunities and a means to secure supply and stabilize prices for various industries. Lowering the barriers to entry through targeted government interventions and facilitating the setup of vertical farm facilities is essential for realizing its potential.

Vertical farming presents a promising solution to Pakistan’s agricultural challenges, with the potential to enhance food security, reduce environmental impact, and boost economic growth.