In Pakistan, push to free farmers from middlemen is riddled with challenges

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Pakistani farmers harvest wheat corps in a field in Lahore on April 20, 2013. (AFP)
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Iqbal Lala works at his sugarcane field, Peshawar, Nov.19, 2019. ( AN photo)
Updated 21 November 2019
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In Pakistan, push to free farmers from middlemen is riddled with challenges

  • Last week, Khyber Pakhtunkhwa government set up 50 ‘kisan markets’ to allow farmers to sell their produce directly to consumers at cheaper rates
  • The markets have not met with much success due to the lasting control of middlemen, who provide loans to farmers and space at markets

PESHAWAR: The Khyber Pakhtunkhwa (KP) government last week opened 50 kisan markets in different districts of the province for farmers to directly sell their produce to consumers, but a miscalculation of the strength of middlemen has kept it from being successful.
In Peshawar, four such markets were established on Dilzak Road and in the neighborhoods of Masho Gagar, Naguman and Peshtakhara, which are entrance points to the city. The areas are accessible to both city residents and farmers.
On the day of their inauguration, Peshawar Commissioner Shahab Ali Shah told reporters that the provincial government wanted to directly link consumers and farmers without middlemen, and to guarantee cheap prices. “All district administrations have been instructed to visit kisan markets on a regular basis to ensure the best quality and cheap rates,” he said.
Under the province’s agricultural extension program, the markets are formed to supply fresh vegetables and fruits at cheaper prices, and to end the grip of middlemen on smallholders. The administration offered free space and tents to facilitate the farmers, but did not realize how strong the intermediaries were.
A huge banner on one tent boasted the “revolutionary step” by the KP government, but a week later the market on Dilzak Road was empty.




According to the banner, the KP government has introduced a program free from commission agents, Dilzak Road, Peshawar, Nov.19, 2019. ( AN photo)

Zeeshan Anwar a resident of Warsak Road in Peshawar appreciated the government’s kisan market initiative. “It was a great step, the other day I bought vegetables 30 percent cheaper, but today these tent shops are empty, this upsets me,” he said, adding that the administration should put more effort into sustaining these markets as they are of great benefit to both farmers and consumers.
According to Assistant Commissioner Asif Khan, the provincial government still wants to address the problem of intermediaries.
“Farmers get loans before sowing seeds against expected crops from commission agents and middlemen. The KP government still wants to end the middlemen monopoly on vegetables and fruits, which would ultimately reduce their prices by up to 40 percent and benefit common man,” he told Arab News.
Agricultural produce in Pakistan has been traditionally controlled by middlemen, who give loans to farmers before the harvest season and provide them space at marketplaces.
“Commission agents get all benefits as they give these loans. It compels us to bring our crops to lenders and sell vegetables on agent’s mercy,” said Iqbal Lala, 53, who has been working as farmer for over three decades. “In KP, these middlemen get their commission from farmers and purchasers and it varies from 15 to 20 percent,” he said, adding that farmers often feel “handcuffed” and compelled to follow this “dirty tradition.”




After a week from their launch, kisan markets are empty, Peshawar, Nov.19, 2019. ( AN photo)

According to middleman Jamal Shah, they do not force farmers to anything, but if they take loans, there are obligations to be fulfilled. “We assist farmers in hard days and we trust them and invest before seeding, and it is us who work for the country’s agriculture. Loans vary depending on the size of farming and commission includes labor, food and other expenses,” he said.
Amjad Khan, secretary general of Malakand Model Farms Services Center, which bridges farmers and the agriculture department, said that without government support farmers will not free themselves from middlemen or commission agents. “The kisan markets idea is brilliant, but it was launched in haste, without any research or survey,” Khan told Arab News. “Seeds, pesticides, taxes and fertilizer rates need to be reduced by 50 percent and banks should introduce a trustworthy plan for small farmers, with mini-loans for season crops,” he said, stressing that for self-sufficiency in agriculture, the state must back farmers and kisan markets would not survive if actual growers remain bounded by agents.


Pakistan says repaid over $13.06 billion domestic debt early in last 14 months

Updated 29 January 2026
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Pakistan says repaid over $13.06 billion domestic debt early in last 14 months

  • Finance adviser says repayment shows “decisive shift” toward fiscal discipline, responsible economic management
  • Says Pakistan’s total public debt has declined from over $286.6 billion in June 2025 to $284.7 billion in November 2025

KARACHI: Pakistan has repaid Rs3,650 billion [$13.06 billion] in domestic debt before time during the last 14 months, Adviser to the Finance Minister Khurram Schehzad said on Thursday, adding that the achievement reflected a shift in the country’s approach toward fiscal discipline. 

Schehzad said Pakistan has been repaying its debt before maturity, owed to the market as well as the State Bank of Pakistan (SBP), since December 2024. He said the government had repaid the central bank Rs300 billion [$1.08 billion] in its latest repayment on Thursday. 

“This landmark achievement reflects a decisive shift toward fiscal discipline, credibility, and responsible economic management,” Schehzad wrote on social media platform X. 

Giving a breakdown of what he said was Pakistan’s “early debt retirement journey,” the finance official said Pakistan retired Rs1,000 billion [$3.576 billion] in December 2024, Rs500 billion [$1.78 billion] in June 2025, Rs1,160 billion [$4.150 billion] in August 2025, Rs200 billion [$715 million] in October 2025, Rs494 billion [$1.76 billion] in December 2025 and $1.08 billion in January 2026. 

He said with the latest debt repaid today, the July to January period of fiscal year 2026 alone recorded Rs2,150 billion [$7.69 billion] in early retirement, which was 44 percent higher than the debt retired in FY25.

He said of the total early repayments, the government has repaid 65 percent of the central bank’s debt, 30 percent of the treasury bills debt and five percent of the Pakistan Investment Bonds (PIBs) debt. 

The official said Pakistan’s total public debt has declined from over Rs 80.5 trillion [$286.6 billion] in June 2025 to Rs80 trillion [$284.7 billion] in November 2025. 

“Crucially, Pakistan’s debt-to-GDP ratio, around 74 percent in FY22, has declined to around 70 percent, reflecting a broader strengthening of fiscal fundamentals alongside disciplined debt management,” Schehzad wrote. 

Pakistan’s government has said the country’s fragile economy is on an upward trajectory. The South Asian country has been trying to navigate a tricky path to economic recovery under a $7 billion loan from the International Monetary Fund.