Point to Ponder March 2024
Women’s Rights or Corporate rights?
In the recent months the focus on women farmers remains a stream. A class analysis of rural women has put them in three categories: land owners, workers on family farms, and landless labor. The first category is no doubt the smallest category, but is representative of the powerful feudal base of the country, enjoying fruits of the land without any hand in labor. The other two categories of women face feudal and patriarchal exploitation, working on land without having any right to land ownership, but their toil resulting in rich harvest for land owners. Agriculture, generating the majority of country’s earnings, as well a major livelihood contributor, remains part of the informal sector, which is a decisive factor for landless women farmers agriculture workers being the most exploited and oppressed at the hand of feudal, capitalist and patriarchal forces. As capitalist mode of agriculture intensifies and increases its grip on agricultural production, many actors are working to highlight the plight of women in the rural economy, raising issues of women’s rights, including right to decent livelihood, safe working environment, right to nourishing food and the most important, right to land. There are also policy level initiatives underway. An example is of the Sindh Women Agricultural Workers Act, which was passed in 2019 but till present little has been done for its implementation. Though, these initiatives are much needed to ensure women can raise their voice in demanding rights, it is also important to remember that exploitative classes, especially capitalism has always used women’s rights as an agenda that benefits its own coffers. Capitalism introduces new technologies much of which require more trained, skilled labor force. This is also being articulated as more and more agriculture universities around the country are stressing the need for trained manpower, a prerequisite for agricultural development. The most critical agenda of all, is to understand that the ultimate and most important of rights is the right to land and which will only be granted based on landless women and agriculture workers’ engaging in this struggle as frontline activists, and not as passive receivers of education and sporadic campaigns.
Corporate Farming – who calls the shots?
With the formation of the Special Investment Facilitation Council (SIFC), there has been a sharp escalation in public land being given over for corporate farming. In addition, land is also being used for gentrification projects like Zulfiqarabad city in Thatta, Bahria Town and DHA city in Karachi. Apart from such housing schemes, farmers’ rights and nationalist groups have been agitating against about 1.3 million acres of land in Sindh being handed over for corporate farming. The Sindhi Hari Tehreek organized a conference on the matter, with participants demanding land to be distributed among landless farmers, as well as called for an end to feudalism. Land grab is not only being seen in Sindh but also across the country including Punjab where a number of actors have been involved including the Revenue Employees Cooperative Housing Ltd (RECHS) as well the Bahria Town Ltd (BTL), and the Defense Housing Authority (DHA).
At the other end of the spectrum, the commercial enterprises have been praising the federal government’s corporate farming policy. According to the President, Hyderabad Chamber of Small Traders & Small Industry, Mr Shaikhani, there was a need for another green revolution, and furthering the corporate farming agenda, with emphasis on international agriculture technologies. Though he spoke in favor of the marginalized, pointing out that 24 percent of Pakistan’s population (approximately 55 million people) lived below poverty, he did not outline the most critical policy recommendation of genuine land reforms with redistribution of land away from the elite to the peasants, who are in essence the foundation stone for the country’s food security as well as economic growth.
The corporate farming agenda now also carries behind it the support of the Pakistan People’s Party (PPP) government in Sindh, even though regional and nationalist parties had protested earlier in the year against the 50,000 acres being given to M/s Green Corporate Initiatives, (Private) Limited, an army-backed entity for corporate farming. Recently, as many as 27 Chinese containers carrying agricultural equipment for the `Green Pakistan` initiative have come through the Khunjerab Pass.
The Sindh government also wants to attract corporate investments in agriculture sector, while emphasizing that local growers would be given equal opportunity in such ventures. The PPP Sindh president, Mr. Nisar Ahmed Khuhro, has stated that the Sindh government has to ensure that irrigation water accessibility to the khatedars, meaning landholders based on revenue records. Given the political ambiguity of land ownership, the feudal and rich landlords controlling land and attached resources including water, what will this mean for the small farmers? It is well known that Pakistan suffers from water scarcity, and this year in the kharif season, there is a risk of 30-35 percent water shortage. For Pakistan’s policy makers, issues of national gravity are resolved not internally through democratic debate and resolution based on equitable distribution for all, but on discussions with known imperialist organizations such as the World Bank, for whom all answers emit from privatization of our resources. In a recent meeting with the Sindh Chief Minister Syed Murad Ali Shah, the World Bank Water Global Director, Saroj Kumar Jha advised that the Karachi Water Board needs to operate like a commercial organization. Needless to point out that the privatization of the energy sector is one of the critical most reasons for Pakistan’s mounting debt.
Ventures like the Kisan Card program are being used to provide small farmers (owning 1-12 acres of land) subsidies and incentives to use ‘best quality’ agro-chemical inputs like pesticides and fertilizers, as well as seeds. Farmers have to register themselves, and open bank accounts at specified banks. These schemes promote digitalization, giving the corporate sector information and access to farmers, as well as ensure that it is their products that are being bought and used by small farmers, increasing their market sphere. It also opens space for Big data to gain insights into farmers’ practices and develop strategic market decisions furthering market hold. It should be pointed out that the World Bank has approve $78 million in financing for the Digital Economy Enhancement Project.
Agro-chemical farming continues to reap super profits from the sale of chemical fertilizers. According to a rich farmers’ lobby, the Sindh Abadgar Board (SAB), the “urea dealers’ mafia” had already minted over PKR 50 billion form farmers in Sindh. Urea prices in the past 12 months have escalated from PKR 2,900/bag to PKR 4,649/bag.
The corporate agriculture policy direction in agriculture development also shed light on the sudden interest in education and skill training programs for rural women as well. At the same time, with more mechanization and digitalization of the agriculture sector, will it mean that millions more landless will have no access to a livelihood?
In short, the only synchronization in agriculture policy is based on the demands of paying off the trillions of dollars of debt that the country’s elite have piled up on the masses. How does corporate farming benefit the landless and how does it provide food security for the people? These are questions that are critical for the economic, social and political well-being of the country.
Climate Imperialism
According to a new report released by the Food and Agriculture Organization (FAO), ‘The Unjust Climate,’ floods and high temperatures have globally widened the income gap between rural poor and non-poor households up by $21 billion a year. Further, with every day of extreme heat, poor rural households lose 2.4% of their on-farm incomes, 1.1 percent of the value of the crops they produce, and 1.5 percent of their off-farm income relative to non-poor households. This certainly depicts the reality of Pakistan. The Global Climate Risk Index, ranks Pakistan as the fifth most climate-vulnerable country in the world. Pakistan also faces some of the highest disaster risk levels in the world, ranked as number 23 out of 194 countries.
Climate crisis facing Pakistan has many times resulted in the destruction of millions of dollars-worth crops, livestock, infrastructure and lives and livelihood of farmers, and rural people. At the same time, rising sea levels continue to destroy agricultural land. Though the advanced capitalist countries are historically responsible for the ongoing climate catastrophe, there is no recognition of the fact. The economic crunch along with the climate crisis are being used to further corporate-owned agriculture technology; collaborations on different projects are happening between different actors including Food and Agriculture Organization (FAO), Sindh Agriculture University (SAU), Tandojam, and Australian Research Council. In addition, the Pakistan Agricultural Research Council (PARC) in collaboration with Chinese partners has introduced climate-resilient wheat varieties that would provide higher yield per acre, that would be useful in ensuring food security for the country.
Professional farmers, such as those from the SAB, also have been urging the use of genetically modified seeds, and private sector led research initiatives for provision of ‘quality seeds’ for climate change adaptation. In other words, paving the way for agrochemical monopoly corporations to take advantage of disaster, destruction and suffering of others for increasing their profits.
Production Woes
While grand plans are underway for modernizing agriculture in the country, there are still many hurdles faced by farmers. For instance, availability of urea remains a grave issue, with imported urea being provided to fertilizer corporations but farmers unable to procure the product. At the same time, though there was a much higher cotton production than the previous year, the demand for cotton remained low, with at least 200,000 bales o cotton lying with ginners, due to the dire economic situation, high tariff rates on power and gas as well as steep taxes on the industrial sector.
For the current cotton sowing season, the government has decided on at least one million acres for cotton production. However, there have been complaints voiced that there was non-payment of the minimum support price of PKR 8,500 that had been promised at the start of the previous season.
For wheat procurement in the current season, Sindh government has approved a target of 900,000 tons of wheat to be bought at a support price of PKR 4,000/bag. The Chief Minister has directed procurement of 100,000 bardana (bags) for wheat collection from farmers. However, in spite of a bumper crop, there was news of wheat procurement from Ukraine. With delays in wheat procurement by the government, it was reported that wheat was being bought from farmers at a much lower price, with unjust deductions in payment based on excuses such as moisture content in wheat grains.
The Debt Trap Panacea – agricultural trade?
Pakistan’s external debt rose by $1.2 billion in six months to $86.358 billion as of September 30, 2023, and stood at $85.18 billion, while the public debt rose to PRK 42.62 trillion (approximately $153 billion) in January 2024. According to the IMF, Pakistan is now seeking another medium-term bailout package that is based on longstanding structural reforms; if the IMF executive board approves the package, the staff-level agreement would be based on $1.1 billion — 828 million special drawing rights (SDR) — by late April.
According to news reports, four areas remain central to the new IMF standby agreement. These include firstly, strengthening public finance which translates to broadening the tax base in particular sectors that are real estate, retail and wholesale trade and agriculture. Secondly, to restoring the energy sector’s viability by accelerating cost-reducing reforms. Cost reducing reforms means budget cuts in production to reduce cost and increase profits, and is often hinged on cutting labor costs. Thirdly, there is emphasis on reducing inflation, which is based on the free-floating foreign exchange market. Fourthly, the emphasis on privatization continues, as well as further reforms of government owned corporations. In summary, all of these measures do not address price control of products but focus on letting Pakistani currency’s value be based on foreign exchange markets, as well further shrinking of the labor market, all measures that could ultimately result in further rise in market prices, joblessness, depreciation of the Pakistani rupee value, resulting in further economic hardship for the people.
The economic growth of the country remains unstable with the Large-Scale Manufacturing (LSM) growth at a negative -0.52 percent, and Gross Domestic Product (GDP) growth at only 1 percent in the second quarter of FY24. The decline in economic growth, along with the stiff conditionalities especially tariffs on electricity and gas continue to have a debilitating impact on the industrial growth as well as the working class, the urban poor and the peasantry. Inflation, as measured by the Consumer Price Index (CPI) has come down from 28.3% in January to 23.06% depicting a slight decrease in the prices of food products. However, raw food products exports had risen by 35 percent in the previous month, up from $518.87 million to $702.46 million, raising food inflation to 20.2 percent.
The way out is of course increasing foreign exchange earnings, and there is a clear governmental effort to increase exports, as well as open the country to foreign direct investment. The government has invited United Arab Emirates to invest in real estate, energy, agriculture, information technology, sectors which have also been under perusal under the IMF agreements.
Malaysian government is interested in increasing import of rice from Pakistan, while welcoming free trade agreements between the two countries. Pakistan, with the help of National Logistics Corporation (NLC) has been exporting bananas, meat and seafood to Central Asian countries, as well as kinnows to Russia. Though in February, textile exports rose to $1.4 billion from $1.18bn during the same month last year, overall, in the first eight months of FY24, textile and clothing exports shrank 0.65 percent from $11.21 billion to $11.14 billion, based on the high production costs related to higher energy prices. It is also notable, that FDI from China, Pakistan’s largest investor, saw a steep decline of 80 percent during this period.
Worth pointing out that in spite of such troublesome data, the corporate sector has been reaping rich profits. On the KSE-100 index, 83 corporations have shown a growth of 45 percent, with profits of $5.94 billion up by 6.3 percent in 2023.
Pakistan Privatization Ltd
With poor credit ratings, the government is unable to get much credit. At the same time, the IMF conditionalities continue the push privatization policy as one of the key recourse for overcoming the crushing economic crisis facing the country. The Privatization Commission is supposed to be working out a three-phased privatization program for public entities in the next five-year plan (2024-29). According to the Federal Minister for Privatization and Board of Investment Abdul Aleem Khan, 15 to 20 institutions must be privatized immediately. There are also ongoing discussions with IMF to introduce reforms within the FBR
The privatization of PIA is considered a priority, and British firm Ernst & Young had been appointed as financial advisor for this purpose. The International Finance Corporation (IFC), member of the World Bank Group, who had earlier last year been appointed by the government of Pakistan as transaction advisor under the Public Private Partnership Act 2017, has informed the Federal Minister for Defence, Defence Production and Aviation Khawaja Muhammed Asif, above the outsourcing of three major airports including Islamabad International Airport, Jinnah International Airport Karachi, and Allama Iqbal International Airport Lahore in the first phase.
Capitalism’s unending disasters
While the thrust for privatization and more and more corporate sector encroachment is being encouraged, there seems to be a blind eye to the environmental disasters, and corrupt practices it brings in its wake. According to the Pakistan Environmental Protection Agency, its survey of 270 industries across four industrial zones has shown that dozens of industries are non-compliant with environmental laws. Assessment measures on discharge of effluents has shown that many industries are responsible for polluting air spaces as well as ground water. Pakistan has been categorized as the second most polluted country in 2023. According to according to ‘2023 World Air Quality Report’, published by IQAir, a Swiss air-monitoring organization, Lahore is the most polluted mega city globally, with pollution levels at 99.5 micrograms per cubic metre (μg/m³), 20 times higher than WHO guidelines. Data from Pakistan Air Quality Initiative (PAQI) has shown that hazardous air quality is resulting in a life expectancy loss of 4.4 years.
While privatization is considered to provide the best option towards development, there is little to prove this assumption. The people of Pakistan continue to suffer from tuberculosis, diabetes and cancer, with women also facing potentially triple-negative breast cancer. It’s reported that the country witnesses approximately 608,000 new TB cases and 15,000 drug-resistant TB cases, annually, while every fourth Pakistani suffers from diabetes. Private hospitals are in the meantime taking advantage of a government hospital, Services Hospital Lahore, by illegally obtaining postgraduate training and house jobs from the facility.
Climate crisis, which has been unleashed on the basis of climate imperialism continues to leash its havoc, not only in Pakistan but globally, with Vietnam suffering from huge loss of arable land due to rising sea levels. While the climate crisis leaves the most vulnerable suffering from loss of livelihood, the World Trade Organization continues to push for more free trade agreements that are entirely detrimental to small producers; a recent example is the passing of the WTO’s fishing agreement which has decided that fisherfolk are responsible for ‘illegal fishing.’
The many atrocities of capitalism also include the ongoing genocide in Gaza. Immune to the intense hunger faced by the people of Gaza, the Zionist Israel continues its food and humanitarian embargo in Gaza. According to UNICEF, said every third Gazan child is severely malnourished.
It is indeed tragic that the world’s policy makers, including those in Pakistan are unable to see the downward social and economic disasters befalling the country. The voices raised by the people against stark injustice ushered through neoliberalism, or induced by climate imperialism fall on deaf ears of our state.