Institutional Assessment and Change Management--

Page 1 of 38

PACE Assessment Study:

Institutional Assessment and Change

Management--

Department of Agriculture,

Government of the Punjab, Pakistan Prepared as part of the Technical Assistance to Department of Agriculture,

Government of the Punjab for the Punjab Agriculture Policy

March 2021 Authored by:

Abdul Wajid Rana

Pakistan Agricultural capacity Enhancement Program (PACE)

Funded by

United States Agency for International Development (USAID) Pakistan

Implemented by

International food Policy Research Institute – Pakistan (IFPRI)

________________

Abdul Wajid Rana is the country Program Leader of the International Food Policy Research Insti-

tute – Pakistan (IFPRI).

PACE Assessment Study: Institutional Assessment & Change Management, Punjab Agriculture Department (Pakistan)

Institutional Assessment and Change Management

2

CONTENTS

1. Background ......................................................................................................................... 4

2. Vision and Goals of Agriculture Department ...................................................................... 5

3. Existing Structure of the Punjab Agriculture Department ................................................... 6

4. Functions of Agriculture Department .................................................................................. 8

5. Legal Framework ................................................................................................................ 8

6. Policy Making and Coordination Institutions ...................................................................... 9

7. Major Constraints ................................................................................................................ 9

7.1. Organizational and Functional Constraints ................................................................... 9

7.2. Monitoring and Evaluation Constraints ...................................................................... 14

7.3. Human Resources Constraints .................................................................................... 14

7.4. Financial Constraints .................................................................................................. 15

7.5. Environmental Constraints.......................................................................................... 17

8. Need for Institutional Restructuring in Agricultural Department ..................................... 18

8.1. Need for Effective Monitoring and Evaluation ........................................................... 19

8.2. Need for Efficient Markets and Removal of trade distortions .................................... 19

8.3. Need for Managing Biodiversity and Biosafety Challenges ....................................... 20

8.4. The need for Generating, Adapting and Adopting New Technology ......................... 20

8.5. Need for Skilled Manpower ........................................................................................ 20

8.6. Need for Coordination ................................................................................................ 20

8.7. Need for Efficiency in Providing Goods and Services ............................................... 21

8.8. Need for the Transfer of Services to the Private Sector .............................................. 21

8.9. Need for Effective and Efficient Management of Agriculture Department ................ 21

8.10. Need for Enhancing Agricultural Exports .................................................................. 21

9. Proposed Restructuring of Agricultural Department ......................................................... 22

9.1. Coordination Committees ............................................................................................ 22

9.2. Other Measures Relating to Proposed Restructuring……………………………… 24

10. Institutional Restructuring and Change Management 26

Annex-1 Functions of Ministry of National Food Security and Research……………………35

Annex-2 Functions of Punjab Department of Agriculture……………………………………33

Annex-3 Change Management Process………………………………………………………35

List of Figures

Figure 1: Organizational Structure of Agriculture Department ............................................................... …7

Figure 2: Low Public Spending on Ag R&D as % of Ag GDP .................................................................. 11

Figure 3: Distribution of Agriculture Sector ADP Allocation .................................................................... 14

Figure 4: Per Capita Agriculture Allocations Across Districts FY206/17 ... Error! Bookmark not defined.

Figure 5: Agriculture Department Recurrent Budget .................................................................................. 15

Figure 6: Proposed Structure of Agriculture Department ........................................................................... 23

Figure 7: Strength of Forces ....................................................................................................................... 26

Figure 8: Kubler-Ross Change Curve ......................................................................................................... 27


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ACRONYMS

ADP Annual Development Plan

ADU Agriculture Delivery Unit

AGGDP Agriculture Gross Domestic Product

AO Agriculture Officer

CBD Convention On Biological Diversity

CM Chief Minister

DA Director Agriculture

DGA Director General Agriculture

FABS Financial Accounting and Budget System

FD Finance Department

GDP Gross Domestic Product

GIS Geographical Information Systems

GOPB Government Of Punjab

GPS Global Positioning System

HIES Household Income-Expenditure Survey

ICT Information and Communication Technology

LD Line Department

M&E Monitoring and Evaluation

MIS Management Information System

MNFS&R Ministry of National Food Security And Research

O&M Operation and Maintenance

P&DD Planning and Development Department

P&E Planning and Evaluation

PAD Punjab Agriculture Department

PAMCO Punjab Agriculture Marketing Company

PARB Punjab Agriculture Research Board

PC-I Planning Commission Proforma I

PIM Project Implementation Management

PIPIP Punjab Irrigated Agriculture Productivity Improvement Project

PMASUAA Pir Mehr Ali Shah University of Arid Agriculture

PPRA Punjab Procurement Regulatory Authority

QCP Quality Control

VCUAF University Of Agriculture, Faisalabad

WTO World Trade Organization


4

1. Background

The enactment of 18th Constitutional Amendment in 2010 was followed by devo-

lution of most of the functions of the erstwhile Ministry of Food, Agriculture and Live-

stock (MINFAL) to the Provinces and the MINFAL was formally abolished on June 30,

2011. Instead, a new Ministry of National Food Security and Research was established1 for

better execution of un-devolved functions as well as attaining and maintaining national food

security. The functions assigned to the new Ministry are at Annex-1. This devolution of re-

sponsibilities to provinces led to increased attention to agriculture2 with a common notion that

there is a significant untapped potential for economic growth and employment creation associ-

ated with productivity improvement of traditional crops and importantly diversification to-

wards high-value and climate smart agriculture, including livestock, and post-harvest value

addition. Unlocking this potential for all these components requires a transformative approach

that would include major policy reforms, institutional changes, and a re-orientation of public

resources away from wasteful subsidies to smart subsidies and productive public investments.

Punjab accounts for more than half of Pakistan’s GDP and is home to more than

110 million people, 36 percent3of whom live in urban areas4. The Punjab agriculture sector

is crucial not only to the economy of the province but also national economy. In Punjab, agri-

culture (in the widest sense including crops, livestock, forestry & fisheries, and on-farm water

management) accounts for 27% of its GDP and provides employment to over 40% of its work

force. About 60 percent of the area is commanded by Indus Basin Water System (IBWS) in

Punjab. 72.6 percent of national cropped area and 77.7 percent of country’s irrigated area is

situated in Punjab. Punjab’s shares in national production of wheat, cotton, rice, sugarcane and

maize (the so-called “major crops” in Pakistan) are 77%, 73%, 52%, 63%, and 78% respec-

tively. Punjab is also a major contributor towards Pakistan’s exports of which more than 75%

are agriculture-based. The average monthly household income in rural Punjab is $285. In 2010

two-thirds of farms were smaller than 2 hectares (up from less 18% in 1960 and 48% in 1990),

and this proportion keeps increasing. The performance of the agriculture sector is therefore

crucial to any strategy for generating higher income.

Following a period of rapid expansion of output in the 1970s and 1980s, agricul-

ture growth in Pakistan (including Punjab which accounts for more than 60% of national

AgGDP) has been lackluster for nearly three decades. Previous growth in agriculture was

largely based on expansion of cereal production with heavy government intervention in cereal

1 Notified on October 26, 2011

2 The Provinces of Punjab, Sindh and Khyber Pakhtunkhwa are processing their own Agriculture Policy formula-

tion. While Punjab and Sindh provinces are implementing many World Bank and Asian Development Bank

funded projects in agriculture and irrigation sectors, KPK and Balochistan are already at advance stage of negoti-

ating projects with IFIs. Punjab is significantly increase resource allocation for investment in agriculture and

livestock sectors including announcement of Kissan (Farmers) Package in FY2017.

3 Population Census 2017

4 The urban local area has been defined under Section 2 (uuu) of the Punjab Local Government Act 2019 as “the

area of a District Council” while the urban local area means “a Metropolitan Corporation, a Municipality, or a

Town.”


5

markets and enormous subsidies. Even though the important goal of staple food security was

reached long ago, government policies have not evolved. From being among the best in the

world in the 1980s, sectoral Total Factor Productivity (TFP) growth in Pakistan has been

largely stagnant for three decades and is now the lowest among South-Asian comparators, cur-

rently accounting for less than a fifth of sector growth. Both crop and livestock productivity in

Punjab are low compared to levels achieved by progressive farmers and productivity in other

Asian countries and resulting in higher unit costs of production of most crops and livestock

commodities.

Punjab’s agricultural sector is hugely subsidized5 but has been neglected for the

past many decades until the farmers resorted to severe public protests in 2015 and 2016.

While agriculture has significant social importance, most government policy makers have not

seen it as a potential engine of growth or a means to increase national wealth. A patchwork of

policies, developed piecemeal over years, has left the sector subject to a wide variety of con-

tradictory approaches and perverse economic incentives, and vulnerable to various forms of

rent seeking and self-dealing behaviors. The private sector, too, tends to neglect agricultural

sector. Credit and investment flow toward the energy, infrastructure, and services sectors leav-

ing agriculture capital starved. Nevertheless, the current Government of the Punjab has realized

the vitality of agricultural sector and its potential to accelerate growth as well as to provide

employment to large rural population. Towards this end, GoPb has undertaken to refurbish

irrigation system by introducing an integrated law regulating both the surface as well as

groundwater, introduce water use efficiency, constructing rural roads connecting them to main

highways and motorways, and investing in livestock sector. The Government is also imple-

menting various policy initiatives to modernize agriculture through Strengthening Markets and

Rural Transformation (SMART). The present government is taking a wholistic view to develop

a comprehensive plan for reinvigorate agriculture sector.

In this backdrop, the assessment of institutional and legal framework pertinent to

management of agriculture sub-sector at the provincial level and the operational envi-

ronment needs consideration of relevant actors, their specialized divisions and functions

and the legislation that governs their respective mandate and actions. This paper describes

the current institutional framework of the Punjab Agriculture Department (PAD), various sec-

toral implementing agencies, the coordinating and policy-making institutions and the sectoral

and cooperative mechanisms and aims at producing a feasible proposal for restructuring and

development of an effective organizational structure for (PAD) to increase its effectiveness and

efficiency in performing its functions in new-market oriented scenario to achieve the recently

formulated vision and to deliver future expectations.

2. Vision and Goals of Agriculture Department

The GoPunjab has envisioned stimulating growth in agriculture by enabling

productivity, increasing competitiveness in agriculture marketing and trade, and enhanc-

5 Subsidy on fertilizer, pesticides, electricity for tubewells, loans, irrigation water, groundwater. etc.


6

ing resilience. The vision aims at transforming agriculture sector into a diversified, sustaina-

ble, and modern and market driven sector through ICT empowerment, efficient resource utili-

zation and revamping existing practices. The principal goals of agriculture incudes:

I. Ensuring sustainable high growth

II. Increased productivity for staple and high value crops

III. Increased private investment in farm and non-farm activities

IV. Sustainability and improved resilience to climate change and natural disasters.

The Government’s vision is operationalized through seven focus areas called

“strategic components”: (i) improving crop and livestock productivity; (ii) development of

value chains and private sector participation in agriculture marketing; (iii) better use of energy;

(iv) gradual shift to high-value agriculture; (v) improving land resources and climate resilient

agriculture; (vi) supporting agribusiness for rural women and youth; and (vii) regulatory and

institutional changes.

The GoPunjab aims at enhancing the agriculture growth rate, improving delivery

of quality inputs to farmers, mobilizing private investment in the sector and rural trans-

formation. Towards this end, the Government is implementing various initiatives. These in-

clude: (i) formulation of a provincial agriculture policy after forty years; (ii) better targeting of

fertilizer subsidy through electronic vouchers; (iii) increasing public investments towards high

value and climate smart agriculture; (iv) improving farm efficiency through high tech farm

mechanization and water conservation technologies such as high efficiency irrigation, and laser

land leveling with financing from the World Bank; (v) optimizing watercourse conveyance

efficiency through enhanced lining; (vi) rainwater management in cotton fields to minimize

impact of climate change; (vii) migrating from implementer to regulator and enabling private

sector; (viii) establishment of an ICT-based knowledge exchange system for better and quick

decision making during pre and post cultivation and post harvesting (Extension 2.0); (ix) re-

vamping research and extension services to meet new challenges of productivity and food qual-

ity; and (x) promoting financial inclusion.

3. Existing Structure of the Punjab Agriculture Department

Punjab Agriculture Department (PAD) is the principle public institution respon-

sible for the development of agriculture sector in the province. It provides the policy direc-

tion and strategies and the development planning for agriculture growth and development. It

along with a large number of subordinate agencies also implements the public role in the legit-

imate areas of public good as well as those areas where private sector needs to have lead role,

such as agriculture produce marketing, research, extension and quality inputs.

The existing organizational of the PAD is at Figure 1. The Secretary PAD is sup-

ported by a Special Secretary, Additional Secretaries, six Directorates General and five direc-

torates and many autonomous bodies. These directorates perform technical, administrative,

regulatory and service functions and include the following:


7

Figure 1: Organizational Structure of Agriculture Department

Directorates General

i. Directorate General Research

ii. Directorate General Extension and Adaptive Research

iii. Directorate General Pest Warning and Quality Control of Pesticides

iv. Directorate General Water Management

v. Directorate General Soil Survey

vi. Directorate General Field

Secretary

Agriculture

Special

Secretary

Agriculture

Marketing

Additional

Secretary

Technical

Additional

Secretary

Admin

DGA Soil

Survey of

Punjab

DGA Pest

Warning &

QCP

DA

Information

DA

Floriculture

DA Crop

Reporting

Services

DGA Water

Management

ADU

Chief Coordinator

Regional Agricultural

Economic Develop-

ment Centre

Chief

P&E

Cell

DA Eco-

nomics &

Marketing

Chief

WTO

Cell

Punjab Seed

Corporation Punjab Ag-

riculture

Research

Board

VC UA

Faisalabad

VC

PMASUAA

Rawalpindi

CEO

PAMCO

Provincial

Market

Committees

Fund Board

Project

Directors

DGA Extension

& Adaptive

Research

DGA Field

DA Punjab Institute of

Agriculture Marketing

DGA Research


8

Directorates

vii. Directorate of Crop Reporting Services

viii. Directorate of Agriculture Information

ix. Directorate of Floriculture

x. Directorate of Agricultural Economics and marketing

xi. Director Punjab Institute of Agriculture Marketing

Other Bodies/Technical Sections

xii. Chief, Planning and Evaluation

xiii. Chief, WTO Cell

xiv. Chief Coordinator, Regional Agricultural Economic Development Centre

xv. Punjab Seed Corporation

xvi. Punjab Agriculture Research Board

xvii. Ayub Agricultural Research Institute

xviii. Punjab Agricultural and Meet Company

xix. Punjab Bio Energy Company (Pvt.) Ltd.

xx. University of Agriculture Faisalabad

xxi. Pir Mehr Ali Shah Arid Agriculture University, Rawalpindi

xxii. Provincial Market Committees Fund Board

xxiii. Water Management Training and Research Institute

4. Functions of Agriculture Department

The functions assigned to the PAD, as enunciated under Rule 3(3) read with Second

Schedule of the Punjab Government Rules of Business, 2011, are at Annex-2.

5. Legal/Regulatory Framework

The legislation pertaining to Punjab Agriculture sector that regulate its various functions include the

following:

i. The Cotton Ginning and Pressing Factories Act, 1925

ii. The Cotton Industry (Statistics) Act, 1926

iii. The Punjab Soil Reclamation Act, 1952

iv. The Punjab Agricultural Development Finance Corporation (Recovery of Arrears) Act, 1958.

v. The Punjab Vegetable Market (Lahore) Ordinance, 1963

vi. The Punjab Tobacco Vend Act, 1958

vii. The West Pakistan Agricultural Bank (Recovery of Dues) Ordinance, 1959

viii. The Punjab Rice (Restrictions on cultivation) Ordinance, 1959.

ix. The Punjab Institute of Textile Technology Cess Act, 1962


9

x. The Punjab Seed & Fruit Plant Ordinance, 1965

xi. The Punjab Cotton Control Ordinance, 1966

xii. Agricultural Pesticides Ordinance, 1971

xiii. The University of Agriculture Faisalabad Act, 1973

xiv. The Punjab Cotton Control (Validation of Levy of Fees) Ordinance, 1971

xv. The Punjab Silkworms (Regulation & Control) Ordinance, 1972

xvi. The Punjab Essential Articles (Control) Act, 1973

xvii. The Punjab Fertilizers (Control) Order, 1973

xviii. The Punjab Agricultural Development and Supplies Corporation Act, 1973

xix. The Punjab Cotton Control (Validation of Transportation Fee) Act, 1974

xx. The Punjab Seed Corporation Act, 1976

xxi. Seed Act, 1976

xxii. The Foodstuffs Fertilizers (Cancellation of Authorizations and Dealerships) Ordinance, 1978

xxiii. The Punjab Agricultural Research Board Act, 1997

xxiv. The Punjab Agricultural produce markets Ordinance (XXIII of 1978)

xxv. Agricultural Pesticides (Amendment) Act, 1992

xxvi. The Pir Mehr Ali Shah Arid Agriculture University Rawalpindi Act, 1995.

xxvii. Agricultural Pesticides (Amendment) Act, 1997

xxviii. Patents Ordinance, 2000

xxix. On-Farm Water Management and Water Users’ Associations Ordinance, 1981

6. Policy Making and Coordination Institutions

The policy making and coordination institutions relevant to Punjab Agriculture Sector are:

I. The Chief Minister

II. Punjab Planning and Development Board

III. Punjab Agriculture Commission (recently established with specific mandate)

IV. Punjab Seed Council

V. Standing Committee of the Punjab Assembly on Agriculture

VI. Punjab Standing Committee on Planning and Finance (for SMART)

7. Major Constraints

7.1. Organizational and Functional Constraints

The current structure of PAD has its roots in the philosophy of an all-knowing and

centrally managed public sector organization. Several fundamental economic, social and


10

environmental changes have occurred during the last four decades. New ideas relating to eco-

nomic development have emerged focusing on governance, changing role of public institutions

and their decentralization, increasing role of the civil society and stakeholders in designing

public policies and relatively growing role of the private sector. Economic liberalization poli-

cies adopted at varying degrees by several developing countries in the 1990s and 2000s, post-

Washington Consensus, including Pakistan have impacted most public sector organizations

significantly. Concomitantly, devolution through 18th Constitutional Amendment has influ-

enced agricultural strategies, policies, research, inputs, marketing, extension, agricultural ser-

vices and natural resources management leading to divestment of the government role, privat-

ization, empowerment, accountability and transparency. The role of the government has trans-

formed from doing everything to policy, rules and regulations, regulatory and enforcement

functions, creating enabling environment for the private sector, monitoring and evaluation, and

building capacities. The new approach calls for an increased participation in planning, imple-

mentation, and service delivery.

In its current organizational structure, PAD is unable to provide and implement

effective agricultural sector policies to achieve the desired sustainable agricultural

growth and development. With its current form and capabilities, PAD is not able to cope with

on-going economic, technological and policy changes at the regional and international levels.

Evidence of the inappropriate organizational structure include the following:

a. Centralized Decision Making: Decision making is, to a large extent, centralized in the

Department itself.

b. Delegation of Authority: Delegation of authority is not widely practiced.

c. Policy Analysis: Less than needed policy analysis, policy formulation and planning

capacity within the PAD.

d. Grey Areas: Existence of grey areas and possibilities of duplication among some di-

rectorates.

e. Institutional Development: Weak institutional facilities for human resources’ devel-

opment and manpower planning.

f. Cross-Sectoral Planning: Absence of institutional arrangements for cross-sectoral

planning and coordination and regular consultation. Policies are set in one-sub-sectoral

department without considering its impact on other sub-sectors of Agriculture, such as

Livestock, Dairy Development, Forest and Fisheries and Irrigation and between various

agencies involved in the development of the sector.

g. Large Number of Directorates: There are large number of directorates, but the system

lacks Agriculture Department-Directorates, inter-Directorates and intra-Directorates

effective communication and coordination mechanism.


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h. Forecasting Mechanism: Absence of any forecasting mechanism for various agricul-

tural products and its communication to farmers to create market equilibrium which

many a times leads to market surpluses and farm-gate price crash causing losses to the

farmers.

i. Inter-Departmental and Intra-Departmental Coordination: Weak inter-depart-

ments and intra-department communication and coordination leading gaps, overlaps,

duplication of effort and policy failure

j. Research System: Following 18th amendment to the constitution in 2010, agricultural

sector responsibilities have been devolved to the provinces, where research systems

have gained a clearer mandate in science, technology and innovation. Nonetheless,

there is little evidence to suggest that provincial research systems have been signifi-

cantly strengthened through this restructuring. The sector-level outputs are not clear:

• No mechanism to find and prioritize emerging issues to be resolved through research.

• Research priorities are decided at the scientist’s level. No involvement of stakeholders

in research.

• Poor research-extension-farmer linkage.

• Little International Exposure or Interaction.

• Little Incentive to be Innovative.

• Lack of Collaboration Between Institutes and Disciplines.

• Little Scientific Monitoring and Evaluation

k. Research Institutions: Existence of specialized Directorate General Research, PARB, and

AARI carrying out research with lack of clarity as to their clear role and interface may result in

duplication of effort and/or split of research activities.

Figure 2: Low Public Spending on Ag R&D as % of Ag GDP

Source: Agricultural Science and Technology Indicators of various years

l. Research Spending: Pakistan’s public spending on agriculture research and develop-

ment as% of AgGDP is the lowest in South Asia. Even countries like Nepal, Sri Lanka,

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2016 2019

R &

D S

pen

din

g a

s %

of

AG

GD

P

Pakistan Bangladesh India Nepal Sri Lanka China


12

Bangladesh are spending higher than Pakistan. China’s public spending on agriculture

R&D is 0.5% of AgGDP while equal contribution is made by the private sector. This

low spending on R&D is affecting productivity and shift to HVA (see Figure 2).

m. PARB: Punjab Agriculture Research Board, despite being a statutory body is hugely

dominated by official directors and members of the provincial assembly that compro-

mises its autonomy and its authority to raise funds. It has also restricted mandate and

has no linkage with other research institutions in the Punjab either for collaboration or

otherwise.

n. PERI: Punjab Economic Research Institute is understaffed and lack resources to update

cost of production analysis for determining the indicative prices.

o. Extension System: The current system suffers from inherent weakness. First, Field

extension worker is expected to support large number of farmers in a vast geographical

area. Agriculture Officer (AO), the front-line extension agent, looks after on an average

30-40 villages. In some districts, there are more than 60 villages under the domain of

an AO. It is almost impossible for an AO to visit every village during each cropping

season. Second, career path for extension workers is unattractive with very slow pro-

motion, minimal benefits, and lack of rewards (Burton, 2012). Third, absence of effi-

cient monitoring and evaluation system at the lower tier of extension set-up is impeding

the effectiveness of public extension system. Fourth, the system lacks specialized

knowledge and training of extension workers in different aspects of agriculture as these

workers possess generalized knowledge and there is minimal involvement of subject

matter specialists in the field work.

p. Geographic Distribution of Extension Agents: Extension workers provide services

in specific geographical areas, rather than crops. It is difficult for an extension worker

to establish command over production technologies of numerous crops cultivated in his

area of responsibility. Consequently, his advice is mostly generic. Fourth, the staff are

demotivated due to poor service structure, lack of focus, shifting priorities, and meagre

salaries. Generally, it is believed that Pakistan has cheap labour; in fact, due to low

productivity, labour cost is far greater in Pakistan than it is in other countries. Fifth,

there is poor coordination between extension and research wings of the Punjab Agri-

culture Department. Coordination takes place only at higher levels. There is no mech-

anism of regular engagement between functional tiers of the extension and the research

wings.

q. Ineffective extension services: Ineffective extension services, especially to smallhold-

ers, are considered as one of the major underlying causes of low productivity. Major

challenges for the extension Directorate are posed by a large productivity and profita-

bility gap between various farmers; land fragmentation; soil, water and environment

degradations; increase in diversification and value addition; and exponential growth in

use of ICT tools. All these have profound effects on the coverage, effectiveness and

efficiency of extension services offered by the Directorate.


13

r. Shrinking Farm Size: In Punjab, where cooperative model could not succeed, shrink-

ing farm sizes pose a serious challenge for the investment and extension strategy. While

a handful of progressive medium and large farmers use advanced agricultural practices

to optimize yields, most smallholders are either unaware of advanced practices and

technologies or do not have the financial or operational capacity to use them. To address

the first part of the problem, the Directorate must either massively expand its workforce

so that they reach smallholders, or it must adopt extension models that promise a greater

geographical coverage with limited resources. Developing private sector extension ser-

vices is another promising option.

s. Private Sector as Service Provider: The private sector is still a minor provider of

extension services in Punjab. Historically, extension has been conceptualized as a pub-

lic service, rather than a commercial activity. Resultantly, the role of the private sector

has been limited to marketing-related extension activities of their representatives. In

several countries, extension is now a private good, to be procured for a fee, and public

extension is focused on universal issues, and on farmers with limited capacity to pay.

Exactly the reverse is the case in Punjab – public extension focusses on precisely those

farmers who have the most capacity to pay.

t. Role of ICT: During the last two decades, Information and Communication Technolo-

gies (ICTs) have improved the effectiveness and efficiency of many services. Agricul-

ture extension is no exception. So far, the Directorate has made piecemeal efforts to use

ICT tools to improve the effectiveness and coverage of public sector extension services.

There is a dire need to adopt a holistic and comprehensive ICT based approach in Pun-

jab to improve such services in a meaningful manner.

u. Climate Change: Climate change is altering rainfall patterns and affecting crops badly

in many areas of Punjab. This requires change in crop selection and agricultural prac-

tices, which shall ultimately put more pressure on extension services to provide advi-

sory on such emerging issues and their solutions. Extension Wing is neither fully aware

of this menace nor geared towards combating such climatic changes.

v. Analysis of Sectoral Spending: Analysis of real spending between 2001/02 and

2014/15 suggests that agriculture research has been a low priority before and after 18th

amendment and the 7th National Finance Commission Award. ACGR of real develop-

ment spending on agriculture research between 2001/02 and 2014/15 was negative in

Punjab, the largest provinces in terms of population.

w. ADP Schemes Allocation: Main focus of Agriculture based on analysis of FY2016/17

ADP apparently continues to be on “On-Going” schemes in terms of allocation as 60%

of on-going schemes has been allocated 63% of total resource for the sector while 40%

of new schemes has been allocated 37% of the total resource.


14

x. Allocation to Core Agriculture Sub-Sector: Core Agriculture Sub-Sector, which con-

tributes 60% of Punjab GDP, has been allocated only 2.5% of total ADP Size of Rs 312

billion in 2020/21 (See Figure 3).

• Agriculture Research is allocated only 5.7% of total Agriculture sub-sector allocation

• Agriculture Extension is allocated only 7.5% of total Agriculture sub-sector allocation

• Allocation for productivity increase and HVA has increased but mainly funded by donors

including HEIS

Figure 3: Distribution of Agriculture Sector ADP Allocation

Source: Annual Development Program of the Punjab for FY2020/21

7.2. Monitoring and Evaluation Constraints

The PAD lacks an effective ICT based mechanism for monitoring and evaluation of the

responsibilities and performance of the large number of directorates. It weakens regulatory and

enforcement function of the department.

7.3. Human Resources Constraints

The human resource constraint severely limit Department’s efforts to deal with

21st Century challenges and modernizing agriculture in Punjab. There are usually short-

term pre-occupations and competing priorities to contend with, all falling within limited ad-

ministrative capacity. The employees of the PAD come from different services/cadres: Pakistan

Administrative Service, federal services, provincial civil services, provincial technical cadre,

and directorate as well as project specific service/staff. They bring with them their shared val-

ues, inter-service and intra-service tensions, and rigidities which affect inter-personal relations,

smooth functioning of the department and policy formulation. The main problems relating to

the human resource include:

28%

6%

7%47%

2%

4%

5%

1%

Distribution of Agiculture Sub-Sector Allocation in FY2021

Productivity & HVA

Research

Extension

Water Course Lining

Mechanization

Economics & Marketing

Education

Labs, Surveys, Climate

Floriculture

Bio-Energy


15

a. Centralization of routine management.

b. Inadequate technical and management skills.

c. Inadequate reporting system

d. Limited opportunities for career progression and disincentivized salary structure which

negatively influence the performance.

e. Lack of objective criteria for distribution of staff amongst various Directorates in the

province

f. Inadequate reporting system and performance evaluation.

Recently, the Department has introduced performance contract system for senior management. How-

ever, its effectiveness is yet to be seen.

A major institutional weakness probably experienced in all sectors of the Govern-

ment is the lack of capacity to execute programs and projects. The severe shortage with the

necessary qualifications and experience is facing all sectors. In addition, staff members in the

more scientific fields of engineering, research, computer science, policy specialists are not at-

tracted to government service because of salary structure. Effort to fill the gaps created with

ad-hoc measures such as creation of Agriculture Delivery Unit have met with some success.

However, this unit is not aligned within the organizational hierarchy and thus not institutional-

ized which results in an even greater dependence on external support. It is important to institu-

tionalize such arrangements in a more sustainable way.

7.4. Financial Constraints

Resource allocation to agriculture sector in Punjab has been far below its potential

and its significance in Punjab’s GDP. A major portion of recurrent budget was allocated to

salary adversely affecting the sustainability of its operational side (see Figure 4). Public in-

vestment is poorly aligned with the policy goals and objectives. Lack of effective training and

computerized budgetary control system, which slow down budget preparation and impedes

effective monitoring.

Figure 4: Agriculture Department Recurrent Budget

2.763.27

3.80 3.96 4.004.26

1.90

1.271.66 1.64 1.73

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Salary Non-Salary


16

The agriculture schemes in the ADP are heavily focused on one major goal of the

Punjab Agriculture Growth strategy -- agricultural productivity. The other key compo-

nents of the Punjab Agriculture Growth Strategy are mostly neglected. Key components such

as improving the regulatory framework and institutional change, value chains and markets, and

energy for agriculture do not have any allocation, whereas improving land resources and envi-

ronment have minimal allocations.

Within agricultural productivity the main focus is on water management, which accounts

for 60 percent of the total allocation under 4 schemes, the largest of which is the World Bank-funded

‘Punjab Irrigated Agriculture Productivity Improvement Project (PIPIP). Furthermore, within agricul-

tural productivity, compared to water management, there is relatively less focus on other areas to im-

prove productivity. In terms of allocation, extension accounts for 21 percent of the total and education

for 7 percent. There is some attention to agricultural inputs, notably mechanization (allocation of 7

percent of the total). At the same time, minimal to no attention is given to other inputs required to

improve productivity.

There is no unified asset management system, which is a critical weakness of PIM in Pun-

jab. The province does not have a unified register for either immovable infrastructure objects or equip-

ment. This is a critical weakness of the PIM system for two reasons: First, lack of information about

existing assets complicates evidence-based investment decisions, as reported gaps cannot be easily as-

certained especially during appraisal. This might result in new investments in locations that already

have better access to infrastructure than underserved areas. Likewise, it hinders an informed analysis of

alternative solutions to an identified need, e.g., whether to invest in new infrastructure or upgrade an

existing asset. Second, lack of data on existing assets results in poor planning and financing of O&M

costs.

Consequently, O&M allocations remain insufficient for adequate maintenance of

existing assets. In turn, inadequate O&M resources tend to result in deterioration of existing

assets, often to the point of non-functionality, which then necessitates costly rehabilitation or

investment in new assets. The extent of this problem is evidenced by the large number of pro-

jects involving rehabilitation of infrastructure that are included in each year’s ADP.

The P&DD monitors progress in project implementation primarily by tracking

disbursements. At present, financial progress is tracked only in terms of disbursements be-

cause LDs do not report commitments through the (Financial Accounting and Budget System

(FABS), even though the system includes a relevant module. So far, some LDs have started to

report commitments in the Management Information System of the Punjab Procurement Reg-

ulatory Authority (PPRA MIS). Lack of timely information on outstanding commitments does

not allow for optimal timing of ADP funds releases and is likely to result in delays and under-

execution of ADP allocations. Moreover, disbursements can be tracked in real time through

the FABS only for projects launched from FY14/15 onwards. For older projects, however, the

P&DD relies primarily on monthly reports by Line Departments because the ADP identifica-

tion of these projects have not been linked to their FABS codes.


17

The P&DD monitoring does not include regular review of the physical progress of

projects. This is currently left to the LDs and LGUs with responsibility for project implemen-

tation. The LDs and LGUs provide updates on the status of physical progress in their reports

to the P&DD, which does not however conduct any review of the reported progress. The sheer

number of projects would make it practically impossible for the P&DD to conduct such a re-

view except for a few, high-risk projects. Going forward, a dedicated ADP MIS linked to the

FABS would enable the P&DD and other center-of-government institutions (e.g., FD. CM’s

office) to track the status of projects throughout the PIM cycle – from PC1 (concept) to PC5

(evaluation). Ideally, such a system would include GIS data on projects’ location and pictorial

evidence of physical progress. At present, infrastructure projects have been already GIS-

mapped in two districts (Sheikhupura and Sialkot), and the widespread use of GPS-enabled

smartphones for monitoring service delivery on the ground could also be used to geo-map in-

frastructure objects.

Monitoring adherence to procurement plans is primarily a function of the PPRA.

At present, the PPRA is in the process of rolling out the MIS to LDs, so that it can track the

implementation of procurement plans. The system will also enable the PPRA to produce ana-

lytical reports on a range of indicators such as the use of various procurement methods,

timeframes for completing procurement processes, and price divergences in different contracts

for the common procurement categories. Compliance with procurement legislation is moni-

tored by the Office of the Accountant General and subject to review by the federal Office of

the Auditor General – the only Supreme Audit Institution in Pakistan. Overall, procurement

under ADP projects is mostly competitive, though the potential savings from competitive pro-

cesses may – to some extent – be offset by the common practice of fragmenting project pro-

curement into multiple lots.

Inadequate budgetary provision for necessary operational inputs seems to be the

main cause holding back newly completed assets from becoming fully functional. This is

to be expected, given that PC1s often do not provide estimates of required O&M costs, and that

overall O&M allocations in the budget fall short of what is required for adequate maintenance.

At the same time, planning and management problems are also an important factor. Difficulties

typically arise when it comes to timely recruitment of service delivery staff required for new

facilities to become functional, given that recruitment is managed through different processes

than PIM. Other shortfalls may related to procurement of critical equipment and/or consumable

inputs (e.g. medicines), and the timely completion of infrastructure inputs provided by different

LDs or entities, e.g. access roads and utility connections.

7.5. Environmental Constraints

Poor institutional design and weak institutional capacity are major hindrances to environmental

management. Effective environmental management requires an appropriate institutional framework

within Agriculture Department. If a specialized environmental agency is to play an effective role, it

should seek to influence and to coordinate effectively with both government agencies and public and

private sector institutions. It should be borne in mind that this cooperation and coordination is usually


18

costly to agencies in terms of staff and other resources. It is intended to form a body to coordinate efforts

concerning land use, fertilizer subsidy, and cropping pattern.

The Agriculture Department needs to design Priority Framework for action in priority

areas such as (i) Institutional and technical capacity for climate change adaptation and disaster risk

management in agriculture; (ii) assessment and monitoring of climate risks, vulnerabilities as well as

enhancing early warning systems; (iii) Improving knowledge management, awareness raising and edu-

cation on climate change, adaptation and disaster risk management; (iv) reducing climate related risks

and the underlying vulnerabilities by implementing technical options in agriculture and livestock; (v)

strengthening capacities and procedures for effective disaster preparedness, response and rehabilitation

at all levels and integration of climate change adaptation interventions.

8. Need for Institutional Restructuring in Agricultural Department

Institutions are humanly devised constraints that shape human interaction and

that provide the structure of formal and informal economic, political and social behav-

ioral rules (North, 1990). For institutional assessment, three things are important: institutional

environment, institutional arrangements, and organization. Institutional environment refers to

the formal and informal values and basic ground rules of a society, such as traditions, norms

and religion. From an economic perspective, the institutional environment includes political,

social and legal rules that form the basis for production and market exchange, such as the rule

of law, private ownership, the enforceability of contracts and so on (Davis and North, 1971).

Taking shape within the given institutional environment, institutional arrangements refer to

formal and informal rules for different types of interaction to conduct official business.

Restructuring of institutions is an instrument of adjustment to changes in the so-

cio-economic environment at the national, regional, or international levels to increase

their effectiveness and efficiency in achieving their mission, performing their roles, and

carrying out their functions. Restructuring of institutions relating to agriculture sector will

enable the preparation and implementation of well-designed agricultural development strate-

gies and policies. These policies may meet the development needs of the agriculture sector

while considering its real constraints and provide solutions for its challenges and must further

maintain a focus on steady growth. Institutions like PAD should be structured in accordance

with the specific needs of the province, stressing its ability to respond to the current and future

socioeconomic and environmental changes.

During the last four decades, agriculture in Punjab has achieved considerable pro-

gress. Production and yield increases have been realized for the basic food crops (wheat, rice)

reflected in high level of self-sufficiency for cereals. It also improved rural income reflected in

good levels of poverty alleviation in the rural areas. However, agriculture in Punjab still suffers

from huge yield gap between progressive and average farmers as well as its neighbors; high

cost of unit production, low water productivity and efficiency, low investment in agriculture

research and development, poor extension services; focus on four major crops rather than

moving to high value agriculture despite a visible shift in food consumption pattern as revealed

by HIES Survey of 2013; declining farm size and huge subsidies to reduce cost of production.


19

The role of the government in agriculture within a market-oriented economy and

in the context of the international economic changes is not only vital, but also difficult to

implement given the nature of challenges and political economy. This is due to the fact that

under such a system, governments refrain from direct interference in production, marketing

and distribution activities, which are almost completely left to the private sector to undertake.

Government’s role is restricted to policy directives to guide the private sector to implement

government’s strategies and policies, creating enabling environment and regulatory enforce-

ment. Hence the need is tremendous for well-designed strategies and policies that include clear

and effective policy directives capable of motivating farmers and fostering private sector in-

vestment in agriculture and related services. The need is also there for the periodic revision of

these strategies and policies to increase flexibility and create dynamic efficiency, not only

within agriculture sector. Needed institutional changes include:

a. A strong policy and planning organ with well-equipped institutional structure

b. A powerful modern state of the art research system

c. A strong statistical and data base system with forecasting capability

d. A powerful management information system for monitoring and evaluation

e. Efficient points of interface within Agriculture Department, for farmers, planners, pri-

vate sector, and NGOs

f. A dedicated unit for private investment and joint ventures in value addition, supply

chain, agro-processing and agri-business, etc.

g. A highly skilled manpower.

8.1. Need for Effective Monitoring and Evaluation

Strategies, policies, and plans, no matter how well designed, lose their effectiveness, if

they are not well implemented. It is important to have an effective ICT based monitoring and

evaluation system and a directorate embedded with the institution.

8.2. Need for Efficient Markets and Removal of trade distortions

Problems farmers face in marketing their products are more critical than their

production. The more efficient the marketing, better the prices farmers are expected to get for

their produce. Needed changes include allowing private sector agriculture produce wholesale

markets to create healthy competition, a powerful marketing information system that collects

and disseminates markets and marketing data and information on daily, weekly, and monthly

basis, a well-regulated contract farming system, and financial inclusion. The department also

need to establish a crop forecasting system and assessment of domestic and international de-

mand export marketable surpluses or import to meet domestic shortages which will help in

stabilizing prices as well as removal of distortions in agriculture trade. Also needed are setting

up of standards and quality assurances.


20

8.3. Need for Managing Biodiversity and Biosafety Challenges

Pakistan is signatory to Sustainable Development Goals which emphasis biodiver-

sity and biosecurity which needs focus on sustainable agriculture. It refers to an agricultural

production and distribution system that achieve the integration of natural biological cycles and

controls; protects and renews soil fertility and the natural resource base; optimizes the manage-

ment and use of on-farm resources; reduce the use of non-renewable resources and purchased

production inputs; provides an adequate and dependable farm income; promotes opportunity

in family farming and farm communities; and minimizes adverse impacts on health, safety,

wildlife, water quality and the environment. Pakistan is also a signatory to Cartagena Protocol

on bio-safety to the Convention on Biological Diversity (CBD) Article 1 of which aims to

“contribute to ensuring an adequate level of protection in the field of the safe transfer, handling

and use of living modified organisms resulting from modern biotechnology that may have ad-

verse effects on the conservation and sustainable use of biological diversity, taking also into

account risks to human health, and specifically focusing on transboundary movements”. In

short, it seeks to protect biodiversity from the potential risks of living modified organisms

(LMOs) resulting from modern biotechnology. There is a need to set up wing to manage these

challenges. Also needed are appropriate strategies for plant protection and pest control.

8.4. The Need for Generating, Adapting and Adopting New Technology

Development of agriculture is a function of, among other things, use of advanced

agricultural technology. Keeping abreast with new technology through generation and/or

adapting and ensuring the adoption of these appropriate technology by agricultural producers

necessitates carrying out appropriate research in agricultural fields and extending such

knowledge to farmers in a way that would make them adopt appropriate technology for their

conditions. Needed institutional changes include: consolidation of agricultural research includ-

ing adaptive research into a provincial agricultural research institution with full mandate over

all aspects of agricultural research and link it with the central extension organ.

8.5. Need for Skilled Manpower

Adoption and application of new and appropriate technology in agriculture re-

quires developing skilled labor force and manpower at different levels and in different

fields of agricultural work. Needed institutional changes include strengthening agricultural

and middle level technical education and retraining. Re-organization implications relating to

human resources include: (i) all staff will be trained according to government policy; (ii) need

for an improved personnel management system and record keeping; (iii) need for performance

evaluation system; (iv) revision and re-orientation of the training centers; (v) management

training courses for all levels; and (vi) mechanisms to facilitate communication.

8.6. Need for Coordination

Effective and efficient policy formulation and planning requires development of ef-

fective coordination between agencies involved in agricultural production input delivery,


21

marketing and processing. Needed institutional changes include: Inter-sectoral Policy Plan-

ning and Coordination Committee headed by either Minister for Agriculture or Chairman

Planning and Development Department with secretaries of relevant departments. Also, an In-

ternal Coordination Committee headed by the Secretary and including all the Special Secre-

taries of the Department and a Technical Committee on plan and budget coordination are

needed.

8.7. Need for Efficiency in Providing Goods and Services

Achieving the objectives of good strategies, policies, and plans require, among

other things, efficiency in the provision of public goods and services. To enhance such ef-

ficiency more focus should be directed to extension and advisory services, equitable and effi-

cient water delivery, soil testing and conservation, establishing service centers, well designed

seed law and specifications for crops, inputs, and machinery. Needed institutional changes in-

clude Special Secretary for Farm Services and directorates for other services.

8.8. Need for the Transfer of Services to the Private Sector

The successful move to the market-oriented economy requires the gradual trans-

fer of services to the private sector. Services to be partly transferred to private sector or joint

venture organizations include: (a) production of improved seeds; (b) nurseries and distribution

of seedlings; and (c) privatization of seed farms. Services to be commercialized include: (i)

Soil Survey labs; (ii) Agriculture Services Centers including mechanization; (iii) extension and

advisory services; and (iv) Environment and Social Safeguards assessments

8.9. Need for Effective and Efficient Management of Agriculture Department

The effective and efficient management of Agriculture Department is a prerequisite for

the achievement of all the above-mentioned objectives. Needed institutional changes include:

• Special Secretaries

• Internal Auditing and Supervision

• Decentralization and Delegation

• Functional distribution of authority and responsibility among Special Secretaries

• Good administrative and financial wing

8.10. Need for Enhancing Agricultural Exports

For agriculture to be self-reliant with respect to foreign exchange and contribute significantly

to the development of the economy, agricultural exports need to be enhanced. Needed institu-

tional changes include: (i) flexibility in the development planning to enable farmers respond to

price signals; (ii) judicious balance between land for export crops and locally consumed crops;

(iii) promote private farming and livestock rearing; and (iv) creation of specialized groups and

marketing services companies.


22

9. Proposed Restructuring of Agricultural Department

The proposed structure of the Punjab Agriculture Department is at Figure 6. The main

features of restructuring include the following:

a. Enhancing senior management for efficient decision-making and implementation with

five Additional Secretaries each dealing with specialized functional areas

b. Aligning the structure with national and international environment and Sustainable De-

velopment Goals

c. Reduction and consolidation of the existing directorates in Agriculture Department

d. A directorate for international cooperation and a directorate for finance

e. Consolidation of all agricultural research and policy activities under Special Secretary

f. Consolidation of all farm services under a Special Secretary

g. Creating a separate wing for Sustainable Agriculture and Biosafety issues

h. Consolidation of all trade, export and markets related issues under a Special Secretary

i. Establishing an ICT based Monitoring and Evaluation system as well as Communica-

tion and Information Directorate

9.1. Institute high level coordination committees:

a. Inter-Sectoral Policy Planning and Coordination Committee headed by either

the Minister for Agriculture or Chairman, Planning and Development with rele-

vant Secretaries as members. The committee would undertake regular consulta-

tion and coordination among departments related to agriculture sector and organ-

izations in the province that have impact on agricultural policies and interven-

tions.

b. Internal Executive Committee headed by the Secretary Agriculture with all the

Special Secretaries as members. Its main functions include: Coordinating internal

activities of the different wings of the Department and making periodic review

meetings to formulate policies, evaluate implementation progress of various ini-

tiatives and projects and take remedial measures when necessary.

c. Agricultural Research and Extension Committee headed by the Secretary Ag-

riculture: Its main functions include: developing provincial research priorities and

programs; engaging private sector in research; making periodic review of the re-

search activities in the province; advising on funding and cooperation links; tak-

ing measures for adapting the research and linking it with extension.

d. Plan and Budget Coordination Committee headed by the Secretary Agriculture

with Special Secretary Human Resource/Admin and Special Secretary Planning

as Members. Its main functions include: Formulate medium to long term plan for

implementation of approved policies in various sub-sectors; clearing development

projects prepared by the relevant directorate for onward processing; acquire

needed resources and manage those resources in most efficient manner; and peri-

odically review progress.

23

Figure 4: Proposed Structure of Agriculture Department

Secretary Agriculture

Agriculture Inputs &

Enforcement

ICT Based

M&E System

Inter and Intra

Department

Communication

Agriculture

Education

Economics, Statistics

& Forecasting

Institute

Nutrition Sensi-

tive Agriculture

& Fortification

Special Secretary Pol-

icy and Farm Support

Additional Secretary

Planning Addl. Secretary Farm

Services Addl. Secretary Trade

and Markets Additional Secretary Hu-

man Resource /Admn Addl. Secretary Sustaina-

ble Agriculture &

Biosafety

Research & Innova-

tion including Adap-

tive Research

Crops, &

Horticulture

Legal, Regulation &

Enforcement

Biosafety

Policy

Farm Water Policy

Plant Systems &

Strategies

Biosafety Enforcement

Plant Health &

Protection

Agriculture

Produce

Markets

International

Cooperation

Export

Standards &

Quality

Agriculture

Commodities

Trade & Access

W.T.O. for

Agriculture

Farm Water

Resource

Management

Medium to Long

Term Planning for

Policy Implementa-

tion

Pest Warning

& QCP

Soil Testing &

Conservation

Agriculture

Extension &

Advisory Services

Regional Ag Develop-

ment Policy and Strat

& Fegy

Agriculture Services

Centres &

Engineering

Project

Preparation &

Processing

Public-Private

Investment

Agriculture

Delivery Unit

Human Resource

Management

Administration

Training

Institute & Capacity

Building

Environment and

Social Safeguards

Assessment

Finance & Budget for

Resource

Acquisition

Agri Business &

Value Chains


24

9.2. Other Measures Relating to Proposed Restructuring

(i) Joint Ventures: Public corporations such as Punjab Seed Corporation be commercialized

and if not successful privatized (Joint Ventures or Private Institutions).

(ii) The legal unit would undertake all legal functions and responsibilities including drafting

of laws and regulations, where required, in consultation with concerned wing of the depart-

ment.

(iii) The Management Information System (MIS) would be the core information center for

the Department. It would: provide information to the top management; monitor and evalu-

ate all directorates and sector corporations etc. develop agricultural production database;

and develop and keep documentation.

(iv) The Directorate of International Cooperation would provide interface with international

organizations such as World Bank, Asian Development Bank, IFC, FAO, IFAD, DFID,

USAID and UNDP, and IFPRI. It would: coordinate projects for international cooperation

and provide technical backstopping on matters relating to international agricultural impli-

cations.

(v) Policy and Farm Support Wing: Its main functions would include: formulation and mon-

itoring and evaluation of structural policies for agriculture, water use, agriculture, research

and extension and employment.

(vi) Planning Wing: Prepare medium to long term agricultural development plans, prepare

projects, follow-up, prepare and coordinate budgets, collection of agricultural production

data, etc. It may have deputy directors for crops, animals, and natural resources and sector

planning. The deputy directors for crops, animals and natural.

(vii) Agriculture Economic, Statistics and Forecasting Institute: Estimate annual demand of

inputs and monitor delivery; collect, analyses and disseminate data on prices for the main

crops, and agricultural inputs; undertake policy related studies in key areas; establish a

documentation center and data-bank for agricultural statistics; market studies and food bal-

ance sheets; undertake statistical surveys; analysis and evaluation of data received; docu-

mentation and publication; develop model for forecasting model for demand, estimate pro-

duction and determine surpluses or shortages in time for decision to export or import.

(viii) Nutrition Directorate: Undertake nutritional intake assessment and planning for nutrition

needs as well as nutrition sensitive agriculture.

(ix) Agricultural PPP Investment Directorate: Advise on allocation of land and water for

private investment consistent with PPP act; provide advice and promotional services; mon-

itor and evaluate public and private sector investment in agriculture and related activities

and develop joint-venture projects; develop marketing information base and dissemination.


25

(x) Farm Water Resources Management directorate: Water resources planning and man-

agement, conduct surveys; watershed management; regulation of use and protection of wa-

ter resources, develop efficient irrigation techniques, and participate in water use policies.

(xi) Environmental Monitoring and Social Safeguards Assessment: Environmental Impact

Assessment (EIA), prepare maps, documents and participate in planning and polices and

undertake social safeguards assessment of the proposed policies and programs in agricul-

ture sector.

(xii) Crops and Horticulture Production and Regulation: It would undertake appropriate

regulatory means for crops, prepare provincial strategies for horticulture crops (fruits, veg-

etables, flowers, medicinal plants), provide technical support to farmers and organizations

involved; collect information on horticulture technologies and exports; and supervise pro-

vincial farms for development of horticulture. It implements rules and regulations and par-

ticipates in planning and policies formulation relating to crop and horticulture production.

(xiii) Agriculture Inputs and Enforcement: Its functions would include: setting standards for

seeds; testing and certification of all seed in coordination with federal seed certification;

technical support to seed industry; initiate seed legislation and enforce seed law; setting

standards for fertilizer use for different crops and arrange its dissemination through exten-

sion wing; monitoring and regulation of seeds, seedlings of horticultural crops.

(xiv) Plant Health and Plant Protection: It would provide appropriate regulatory means for

crop protection against pests and diseases; survey and combat pests and enforce rules and

regulations, and manage national crop protection operations also participate in policy and

planning and provide technical support to relevant areas.

(xv) Agriculture Education: Skilled agriculture labor force and information are becoming in-

creasingly important capital for agricultural growth and development. It would coordinate

with all institutions relating to agriculture education in the province.

(xvi) Agriculture Training Institute: There is an urgent need for reforming this institute in

terms of staff, curricula, and equipment. It is important that the staff should be highly qual-

ified, well trained and conversant with teaching and training methods, and permanently

assigned to the teaching and training profession, provided opportunities for further training

and given incentives to stay as teachers and trainers. Greater emphasis should be directed

towards strengthening the mid-level management education. The current curricula need be

revised with increased emphasis on field, changing technology orientation and current cul-

tivation techniques.


26

10. Institutional Restructuring and Change Management

Leading positive change is a management skill that focuses on unlocking positive hu-

man potential. Positive change enables individuals to experience appreciation, collaboration,

vitality, and meaningfulness in their work. They include: (1) establishing a climate of positivity,

(2) creating readiness for change, (3) articulating a vision, (4) generating commitment to the vision,

and (5) institutionalizing the positive change (Cameron & Ulrich, 1986). Nevertheless, there is

always initial resistance to organizational change for at least three reasons: (a) people have had

negative experiences as a result of previous organizational change efforts, particularly during tran-

sition; (b) loss of status quo; and (c) uncertainty created by the impact of impending change.

It needs to be recognized that in a given moment, an organization is in a state of equi-

librium which results from the balance between driving forces that push for change and re-

straining forces that act against change. To make change happen, the balance of these forces

must be altered to let equilibrium moves. It will require an increase in driving forces or a decrease

in the resistant forces (Figure 7).

Figure 5: Strength of Forces

Present Status Quo

Driving Forces Resisting Forces

Promise of greater financial rewards

Better knowledge & technology

Wish for better image with peer groups

Customer complaints

Department’s desire to do better

High morale

Pressure from stakeholders for better returns

Pressure from policy decision-makers

Desire for greater financial rewards

Lack of knowledge about exactly what’s

wrong

Threats

Short-staffed, Low morale

Poor Equipment

Poor and low quality of output

Low belief that there is anything in it for us

Dynamic New Status


27

People react against change for a wide range of reasons including fear of the un-

known, lack of information, threat to status, lack of perceived benefits, fear of failure, low

trust in the organization and leadership, strong peer groups norms and being bound by cus-

toms. The Elisabeth Kubler-Ross Change Curve6 reflects various levels or stages of emotions ex-

perienced by the organization when facing change (Figure 8). These range from negative reactions

which see change as a threat, to positive reactions, which see it as an opportunity.

Four factors are significant while working for change management. First, formal insti-

tutions are easier to create or modify than informal institutions as it is easier to change specific

institutional arrangements than to modify or change the institutional environment: the latter re-

quires changes in political and social fabric which generally take a long time. Second, changes in

formal institutions are easier to implement if they conform to the general informal rules of the

society. Third, there are no guidelines or explicit procedures for changing or modifying informal

rules. Fourth, the same institutions, formal or informal, might yield different economic, social or

political outcomes in different countries.

Figure 6: Kubler-Ross Change Curve

Spencer and Mountford (1997) point out that the gain from a well-managed change effort brings out growth

and prosperity to organizations and stakeholders. Kotter (1995) suggest eight-steps change implementation

6 Elisabeth Kubler-Ross, “Death and Dying”, 1969


28

model.7 Based on literature and experience, Figure 9 summarizes the eleven steps process involved in lead-

ing positive change. The details of behavioral guidelines are at Annex-3.

Leadership is a key element in change management. The power and ability of organizational

leadership to lead and influencing others is vital to implementing change. It is a dynamic process as all

individuals or groups continuously seek to gain power and influence others to think or act in particular

ways. Therefore, it is important for a transformational leader to create a vision which is inspiring and worthy

of people’s thinking and actions, setting smart goals, developing effective and high performing teams, and

building credibility. The transformational leader is not encumbered by current circumstances, beliefs or

assumptions and daunting challenges. Bernard Bass (2008)8 has suggested four components of transforma-

tional leadership to bring change as follows:

a. Intellectual Stimulation. He challenges the status quo; encourages creativity among fol-

lowers; and explore new ways of doing things and new opportunities.

b. Individualized Consideration. Transformational leadership supports and encouragement

to individual followers. In order to foster supportive relationships, transformational leader

keep lines of communication open so that followers feel free to share ideas and so that

leaders can offer direct recognition of the unique contributions of each follower.

c. Inspirational Motivation. Transformational leaders have a clear vision that they are able

to articulate to followers. These leaders are also able to help followers experience the same

passion and motivation to fulfil these goals.

d. Idealized Influence – The transformational leader serve as a role model for followers.

Because followers trust and respect the leader, they emulate this individual and internalize

his or her ideals.

The transformational leader develops effective and high performing teams having

high level of trust amongst members and learning from geese flying formation to bring

change. The teams are faced with the need for continuous improvement, innovation, speed and

capitalizing on core competencies. The teams’ members sponsor new ideas, orchestrate their im-

plementation, and foster extraordinary performance. Individuals do not work for themselves; they

work for one another in pursuit of the shared purpose and vision. Teams produce outcomes above

and beyond current standards of performance. They surprise and delight their various constituen-

cies with quality levels not expected. An intolerance of mediocrity exists, therefore, standards of

performance are very high.

7 Kotter, J. (1995). “Leading Change: Why Transformation Efforts Fail.” Harvard Business Review, vol. 73, iss. 2.

8 Bass, B. M. & Riggio, R. E. Transformational Leadership. Mahwah, New Jersey: Lawrence Erlbaum Associates,

Inc; 2008.


29

Figure 9. Eleven Steps for Leading Positive Change

Establishing a sense of urgency by relating to potential crises and

opportunities facing the organization

Forming a powerful coalition of change-oriented individuals and

developing effective teams

Articulate a vision to achieve the desired end-result

• Focus on positive deviance

• Make the vision interesting

• Ensure source credibility

• Attach the vision to a symbol

Communicating the vision through numerous channels of commu-

nication

Establish a Climate of positivity

• Create positive energy networks

• Ensure a climate of compassion

• Build on strengths

Create Readiness

• Benchmark Best Practices

• Institute symbolic events

• Create new language

Generate Commitment

• Apply principles of recreational work

• Ensure public commitment

• Institute a small-wins strategy

Empowering others to change structures or policies in ways that

will facilitate

Planning to publicize short-term wins or successes so as to encour-

age change continuity

Consolidating improvements and changing some policies that are not

associated with the vision

Institutionalize the vision- Create Irreversible Momentum

• Turn learners into teachers

• Build human capital

• Establish metrics, measures, and milestones

• Publicizing organization’s successes


30

Team leader build credibility with his team members by: (i) demonstrating integrity,

representing authenticity and displaying congruence; (ii) being clear and consistent about what

they want to achieve; (iii) creating positive energy by being optimistic and complimentary; (iv)

building a base of agreement among team members before moving on, with a focus on task ac-

complishment; (v) managing agreement and disagreement among team members by using one-

sided and two-sided arguments appropriately—one-sided in situations when all team members

agree, two-sides when consensus does not pre-exist; (vi) encouraging and coaching team members

to help them improve; and (vii) sharing information about the team itself, providing perspective

from external sources, and encouraging participation.

Transformational leader during the process of change management must be cogni-

zant of those who play blocking roles in reform process. These are: (i) Dominating through

excessive talking or cutting others off; (ii) Overanalyzing splitting hairs and examining every

detail excessively, blowing something out of proportion and drawing unfounded conclusions; (iii)

Stalling not allowing the teams to reach a decision or finalize a task by side tracking the discus-

sion, being unwilling to agree, repeating old arguments; (iv) Remaining passive, not being willing

to engage in the teams’ tasks, staying on the fringe or refusing to interact with other team members,

expecting others to do the teams’ work; (v) Fault-finding, unwilling to see the merits of others’

ideas or criticizing others excessively; (vi) Premature decision-making, making decisions before

goals are stated, information is shared, alternatives are discussed, or problems are defined; (vii)

Presenting opinions as facts, failing to examine the legitimacy of proposals and labelling personal

opinions as truth; (viii) Pulling rank. Using status, expertise, or title to get ideas accepted rather

than discussing and examining their value; (ix) Resisting. Blocking all attempts to change, to im-

prove, or to make progress. Being disagreeable and negative about virtually all suggestions from

other team members; and (x) Deflecting. Not staying focused on the topic of the team’s discussion,

changing the subject of discussion or making comments that deflect attention away from the main

points.

The Punjab Agriculture Department has initiated the change management process

recently. The department has crafted a vision which is “stimulating growth in agriculture by ena-

bling productivity, increasing competitiveness in agriculture marketing and trade, and enhancing

resilience. The vision aims at transforming agriculture sector into a diversified, sustainable, and

modern and market driven sector through ICT empowerment, efficient resource utilization and

revamping existing practices” and set goals for itself. The department got dynamic leadership who

understands the challenges and constraints facing the agriculture sector. To push this change, an

Agriculture Delivery Unit manned by young, spirited and committed persons is in place. However,

this Unit has been established outside the organizational structure and hierarchy and is reporting

directly to the leadership. The experience of such arrangements in the Government has been that

such stand-alone units gain temporary success but gradually become a cause of organizational

tensions due to salary differential as well as regular staff consider it a threat. So, such specialized

units are highly dependent on the change leadership. They may not survive for long when the


31

current leadership is replaced. Therefore, it is important that the change management is institu-

tionalized through restructuring as proposed and hiring required skills from the market.

The leadership while generating commitment must be cognizant of skills-gaps as well

as noises within the department which, if not addressed, may have negative impact on change

process. Proposed restructuring of the Department will need new set of skills to bridge the existing

gaps. Secondly, it will be important to develop incentive structure including promotion opportu-

nities, reorientation and retraining and salary structure of the technical cadre. It will be vital to

carry them along in the change process to make the change sustainable.

The leadership is making efforts to generate commitment to the vision amongst De-

partment’s staff and developing effective change teams by organizing retreats and group

discussions. The department has also developed a system of performance contract and perfor-

mance evaluation. To institutionalize change, it will be important to communicate the crafted vi-

sion to various stakeholders through different communication channels. Engaging private sector

specialists as well as academia as resource persons could provide a well-researched and evidence

based input and a reality check on different issues facing agriculture sector as well as the institu-

tional change.

Communication is the most significant tool in change management as it plays a pivotal

role in collaborating all human activities that link people together and create relationships.

Also, communication is embedded in every aspect of becoming a learning and effective organiza-

tion. It may be noted that current structure of the Punjab Agriculture Department is highly bureau-

cratic and hierarchical shaping its communication practices in a vertical formal way, such as a top-

down chain of command through written forms of communication, while personal interactions

may not be very well exposed. Change management requires direct communication with the stake-

holders as well as communication quality (content of the communication sent). Failure to share

information or to inform people adequately of what changes are necessary and why they are nec-

essary viewed as having a highly negative impact.

The most frequently noted categories of problem encountered by the organization in

transition are “communicating vision” and “negative attitudes.” If an organization’s leader-

ship does not consider which communication behaviors it wishes to foster for its success, the sig-

nals it sends to employees may be inconsistent or counterproductive. Underlying reasons why

communication often falls short of the ideals, which are accuracy, reliability, validity, adequacy,

and effectiveness. Recognizing the significance of communication during change management,

the Punjab Agriculture Department is in the process of engaging an international expert to develop

communication strategy.

Institutionalization of change process and management will be of critical significance.


32

Annex-I

Functions Assigned to the MNFS&R

1. Economic coordination and planning in respect of food, economic planning and policy making in re-

spect of agriculture.

2. Imports and exports control on food grains and foodstuffs, inspection, grading analysis of food grains

and foodstuffs, maintenance of standards of quality for import and export and inspection, handling,

storage and shipment of rice exports.

3. Collection of statistics regarding production, consumption, prices, imports and exports of food grains.

4. Coordination with aid and assistance agencies in respect of food sector.

5. Pakistan Agricultural Research Council and other Federal agriculture research organizations.

6. Food and Agriculture Organization (FAO) of United Nations in respect of food.

7. Plant protection, pesticide import and standardization, aerial spray, plant quarantine and locust control

in its international aspect and maintenance of locusts warning organizations.

8. Federal seed certification and registration.

9. Standardization and import of fertilizer.

10. Procurement of foodgrains, including sugar: (a) from abroad; (b) for Federal requirement;

(c) for inter-Provincial supplies; and (d) for export and storage at ports.

11. Grading of agricultural commodities, other than foodgrains, for exports.

12. Administrative control of PASSCO.

13. Preparation of basic plan for bulk allocation of food grains and foodstuffs.

14. Price stabilization by fixing procurement and issue prices including keeping a watch over the price of

foo grains and foodstuffs imported from abroad or required for export and those required for inter-

provincial supplies.

15. Agricultural Policy Institute.

16. (i) Animal quarantine departments, stations and facilities located anywhere in Pakistan.

(ii) National Veterinary Laboratory, Islamabad.

(iii) Laboratory for Detection of Drugs Residues in Animal Products at Karachi.

17. Veterinary drugs, vaccines and animal feed additives’-

(i) import and export; and

(ii) procurement from abroad for Federal requirements and for inter-provincial supplies.

18. Livestock, poultry and livestock products’-

(i) import and export; and

(ii) laying down national grades.

19. Pakistan Dairy Development Company.

20. Livestock and Dairy Development Board (LDDB).

21. Fisheries Development Board (FDB).

22. Pakistan Oil-Seed Development Board (for Federal areas only).

23. International cooperation matters relating to agriculture and livestock.

24. Administrative control of the Agricultural Counselor’s Office at Rome, Italy.

25. National Fertilizer Development Centre.

26. Administrative control of Pakistan Central Cotton

27. Pakistan Tobacco Board

28. Department of Plant Protection (DPP)

29. Animal Quarantine Department (AQD)

30. Plant Breeders' Rights Registry

31. National Veterinary Laboratory (NVL)

32. Federal Water Management Cell (FWMC)


33

Annex-2

Functions of the Punjab Agriculture Department

1. Legislation, policy formulation and sectoral planning regarding:

a. Agricultural Education, Training and Research including Agriculture University, Faisala-

bad and Pir Mehar Ali Shah University of Arid Agriculture Rawalpindi and pre-service /

in-service training at Agriculture Training Institutes.

b. Adaptive Research and Research Farms

c. Improvement of agricultural and water management methods.

d. Protection against insects, pests, prevention of plants diseases and quality control of pes-

ticides.

e. Soil Fertility and Soil Conservation

f. Mechanization, reclamation of land, use of agriculture machinery, ploughing, tube-wells

and installation and research Agricultural Engineering (Agricultura Machinery and Im-

plements), Water

Management Training and Research Institute, Lahore.

g. Agricultural Information and publications / training.

h. Agricultural Statistics

i. Preparation, implementation and review of agriculture production strategy in harmony

with the research education system through Agriculture Extension and Adaptive Re-

search.

2. Arboricultural Operations.

3. Monitoring of fertilizers, pesticides, irrigation, and other inputs, through field extension staff.

3a. Administrative, financial and technical control of Agriculture Extension, in-service and pre-service

agriculture training to the staff, adaptive research and other agriculture farms.

3b. Maintenance of Government buildings, purchase of stores and execution of development projects.

4. Promotion of modern production technologies by use of latest techniques through interpersonal

contracts method, result demonstration, farmer training, gathering of information through Infor-

mation and Communications Technology, print and electronic media at regional level according to

the site-specific conditions.

4a. Feedback, researchable problems in research and educational institutions, field surveys and execu-

tions of internship program for agriculture graduates.

5. Training and Research on Floriculture Seed Farms / Green Belts.

6. Market Information & Intelligence System and matters common to all Market Committees.

7. Agricultural Loans / subsidies

8. Water management operations, planning, benchmarks, coordination and improvement of water-

courses, provision of laser land levelers, installation of high efficiency irrigation systems, irrigation

agronomy practices, groundwater management and harvesting of water resources in barani or rain-

fed areas.

9. Production, multiplication and marketing of certified seed through Punjab Seed Corporation


34

10. Coordination and Strengthening of Research activities in Agriculture, Livestock, Irrigation, Water

Management, Forest and Fisheries Sector through Punjab Agricultural Research Board.

11. Economic Planning and policymaking in respect of agriculture in the province.

12. Plant Protection:

(a) Standardization of local and imported pesticides

(b) Plant quarantine

13. Economic studies for framing agricultural policy

14. Farm management research for planning project formulating and evaluation in the province.

15. Seed testing and seed certification; crops forecast and estimation; crop insurance in the province.

16. Grading of Agricultural commodities other than food grains, for exports.

17. Agricultural commodity research (marketing research and laboratory research for lying down dis-

trict, regional and provincial grades)

18. Soil survey, comprehensive inventory of soil resources of province and their proper utilization.

19. Standardization of fertilizers through soil fertility research, nutrient management studies, trainings,

soil mapping through laboratories and soil fertility advisory services.

20. Introduction of special crops like jute, tea, olive etc.

21. Under-developed areas:

(a) Identification of under-development areas.

(b) Identification of the fields in which an area is under-developed.

(c) Measures necessary to remove the causes of under-development in different areas

22. Socio-economic studies for framing agricultural research policies.

23. Research for the introduction of improved germs plasm, relating to agriculture

24. Collection of statistics on agricultural research

25. High level manpower training for agricultural research and on farm management.

26. Pest Scouting, Pest Survey, Pest Warning, Quality Control of Pesticides, Research on Plant Protec-

tion, Training of Pesticide Dealers, Farmers & Extension Workers in Plant Protection.

27. Budget, accounts and audit matters.

28. Purchase of stores and capital goods for the department

29. Service matters except those entrusted to Services & General Administration Department

30. Administration of the various laws and the rules framed there-under

31. Matters incidental and ancillary to the above subjects.


35

Annex-3

Step 1. Establish a Climate of Positivity

Step 2. Creating Readiness

1. Create Positive Energy Networks

• Place positive energizers in places where others can interact with them and be influenced by them.

• Model positive energy yourself.

• Recognize and reward positive energizers.

• Provide opportunities for people to form close friendships at work.

2. Ensure a climate of compassion, forgiveness, and gratitude.

• Enable collective noticing of human concerns.

• Enable the expression of collective emotion.

• Enable the collective responding to difficulty, pain, or distress.

• Publicly and personally acknowledge trauma and harm.

• Identify higher purpose outcomes that people can point toward.

• Maintain high standards and look toward the future after mistakes.

• Provide personal support to people who have been harmed.

• Pay attention to language so that virtuous words are acceptable.

• Express gratitude frequently and conspicuously, even for small acts.

• Keep track of things that go right (not just that go wrong).

3. Identify and give people feedback on their strengths and unique competencies.

• Implement a reflected best-self feedback process.

• Spend the most time with the strongest performers.

• Work to capitalize on strengths rather than focusing on overcoming weaknesses.

• Use five positive comments for every negative comment in your interactions with others.

1. Benchmark best practice and compare current performance to the highest standards.

• Use comparable others as standards.

• Use stated goals as standards.

• Use past improvement as a standard.

• Use an ideal as a standard.

• Use others’ expectations as a standard.

2. Institute symbolic events to signal the positive change.

• Interpret events or activities as indicators of the beginning of a new era.

• Manage people’s interpretations and mental images of incidents so that they reinforce the intended

change.

• Pay as much attention to the meaning of change as the substance of the change.

3. Create a new language that illustrates the positive change.

• Use words associated with the change that capture people’s imagination.

• Use passionate and inspiring language.

• Use words that communicate and reinforce a new direction.


36

Step 3: Articulate A Vision

1. Focus on creating positive deviance rather than correcting negative deviance.

• Focus on possibilities more than probabilities.

• Focus on extraordinary, spectacular achievement rather than just winning or being seen as success-

ful.

2. Include left-brain images by asking questions such as:

• What are our most important strengths as an organization?

• Where do we have a strategic advantage?

• What major problems and obstacles do we face?

• What stands in the way of significant improvement?

• What are the primary resources that we need?

• What information is required?

• Who are our key customers?

• What must be done to respond to customers’ expectations?

• What measurable outcomes will we accomplish?

• What are the criteria to be monitored?

3. Include right-brain images by asking questions such as:

• What is the best we can achieve?

• What represents peak performance?

• What stories or events can we tell that characterize what we stand for?

• What metaphors or analogies can we use that will identify what the future of our organization will

look like?

• What symbols are appropriate for helping capture people’s imaginations?

• What colorful and inspirational language can exemplify what we believe in?

4. Make the vision interesting by challenging weakly held assumptions.

5. Ensure credibility of the vision through demonstrating:

• Integrity in adhering to a consistent set of principles.

• Knowledge regarding the implications of the vision.

• Enthusiasm and personal passion for the vision.

• Association with core personal values.

• A straightforward and simple message.

• Exciting and energizing language.

6. Attach the vision to a symbol to constantly remind people of the vision.

• Create visual images such as logos, flags, or signs.

• Make certain that the visual symbol is closely associated with the vision so it remains a constant re-

minder.


37

Step 4. Generating Commitment to the Vision

Step 5. Institutionalizing the Vision and Create Irreversible Momentum

1. Apply principles of recreation to the work associated with the vision:

• Clearly define goals.

• Ensure that scorekeeping is objective, self-administered, peer-audited, and compared to past per-

formance.

• Ensure frequent (or continuous) feedback.

• Provide opportunity for personal choice.

• Ensure that rules are consistent and don’t change.

• Provide a competitive environment.

2. Provide opportunities for people to publicly commit to the vision.

• Hold events where people can verbalize their commitment.

• Ask people to teach others about, or recruit others to sign up for, the vision.

3. Institute a strategy of small wins.

• Find something easy to change.

• Change it.

• Publicize it.

• Repeat the process multiple times.

4. Communicate the vision frequently.

• Never give a public speech or presentation without mentioning the vision.

• Make certain that all your written messages contain references to the vision.

• Avoid changing messages.

1. Turn learners into teachers.

• • Provide opportunities for people to develop a teachable point of view.

• • Make certain that others are required to articulate the vision themselves.

2. Build human capital.

• Ensure training and development opportunities for others so they can be leaders of positive

change.

• Encourage the formation of networks and friendships that provide support.

3. Identify metrics, measures, and milestones.

• Identify when measurable progress will be achieved.

• Identify what the specific criteria will be for evaluating success.

• Determine how successful achievement of the vision will be ascertained.

• Maintain accountability for the success of the positive change.


38

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