Sunlight or Diesel? The Struggle of Pakistan’s Farmers

Saba Chaudhary

Narowal: Nadeem, 27, a small-scale farmer from South Punjab, never imagined that the only work he has ever known—farming—would one day feel impossible.

With water levels sinking and fuel prices soaring, keeping his crops alive has become a battle against rising costs and a system that offers little support.

“Two years ago, our produce was badly affected due to dirty canal water. Even now, we have to wait for days to irrigate our land,” he says.

Like many farmers in the region, Nadeem still relies on a diesel-powered tube well for irrigation. But as the water table has dropped from 20 to 80 feet in recent years, pumping water demands more fuel—and more money—than ever before.

A Missed Opportunity

Solar technology could be a game-changer, helping farmers like Nadeem cut fuel costs and secure a more stable water supply. But the path to solar irrigation remains inaccessible for many.

Pakistan has over 1.2 million privately operated tube wells — 85 percent of them in Punjab, the country’s agricultural heartland. Yet most small-scale farmers say they can’t afford to transition to solar, even with government support.

Under the Punjab Solarisation for Agriculture Tube Wells Program, the provincial government has allocated 9 billion rupees to help farmers make the switch. The subsidy covers up to Rs 1 million per system but only applies to those with at least one acre of land — and even then, just 8,000 tube wells across the province qualify.

“We cannot transition on our own. Lots of planning, budgeting, and management are needed — and a small farmer like me doesn’t understand all of this,” says Nadeem.

Even those who qualify must cover the remaining cost out of pocket — often hundreds of thousands of rupees. For smallholders already stretched thin by rising input costs for seeds, fertilisers and diesel, the upfront investment is a risk they say they simply can’t take.

Jowdat, a four-acre landowner, is one of those stuck in the middle. On paper, he qualifies. But the paperwork is overwhelming, and the remaining costs are far beyond reach.

“Government subsidies for energy transition fail small-scale farmers due to poor program design, financial barriers, and bureaucratic inefficiencies,” explains Dr Ahmad Mansoor from the Climate Change and Sustainable Development Programme in Pakistan.

“Many subsidies require significant initial investments, which smallholders cannot afford. Access to formal credit is also restricted due to high interest rates.”

The Rising Costs of Agri

For farmers unable to afford solar, diesel remains the only option, even as it eats away at their already slim profits.

“When diesel prices go up, some days the daily expense is Rs10,000 just for irrigating crops,” says Muhammad Khalid, a 40-year-old farmer from Narowal. “Not giving enough water, especially in summers, damages both the quantity and quality of crops.”

Khalid owns three acres and spends around Rs30,000 a month on diesel. With fuel prices fluctuating and electricity access unreliable, many small farmers are trapped in a cycle of rising costs, low yields, and mounting debt.

While small farmers struggle to access solar irrigation, Pakistan’s broader solar market is booming — but just not for them.

In April 2024, Norwegian firm Atlas used satellite data to identify over 400 solar plants across Pakistan, mostly concentrated in industrial zones. Many more remain undetected.

A study by Bloomberg NEF found that much of the country’s solar capacity is concentrated in commercial and industrial installations, where businesses produce their own electricity.

In 2023, Pakistan imported $1.45 billion worth of solar panels from China. By mid-2024, that figure was already matched.

But this transition has largely bypassed rural communities.

“Farmers, particularly smallholders, face significant financial barriers to adopting solar irrigation,” says Harjeet Singh, climate activist and founding director of Satat Sampada Climate Foundation.

“They often rely on self-financing or informal loans due to difficulties in accessing formal credit. In contrast, industries have better access to financing through commercial banks or private investments due to their potentially higher revenue and creditworthiness.”

Why Aren’t Subsidies Working?

Despite the provincial government’s subsidy programme, uptake remains low, and awareness even lower. Experts point to a mismatch between policy and reality: most smallholders don’t meet land criteria, can’t navigate the paperwork, or don’t have the upfront cash to make the leap.

But Pakistan’s challenges aren’t unique — across South Asia, small farmers face similar hurdles. What sets others apart is how their governments have overcome some of these hurdles.

“Pakistan can learn from India and Bangladesh, where targeted financial support and strong policy frameworks have enabled small-scale farmers to adopt solar,” says Dr Mansoor.

“India’s PM-KUSUM scheme offers substantial subsidies and buyback incentives, while Bangladesh’s Solar Home System program shows the power of microfinance and community-led models.”

By comparison, Pakistan lacks large-scale support systems for smallholder farmers despite its target of 60 percent clean energy by 2030.

Falling Behind, Internationally

In December 2024, Pakistan became the first South Asian country to sign the Fossil Fuel Non-Proliferation Treaty, signalling strong international intent to phase out fossil fuels. But so far, those ambitions haven’t translated into support for rural farmers.

While critics argue that Pakistan’s government has failed to deliver the financial support needed for farmers, there’s also a deeper issue: Pakistan itself isn’t getting the climate finance it needs from the international community.

“Despite being highly vulnerable to climate change, Pakistan lags in international climate finance accessibility,” says Harjeet Singh.

“The fact that solar-powered irrigation is largely driven by farmers purchasing pumps directly, without favourable interest rates or subsidies, suggests a fundamental lack of financial support from external sources.”

A UN report highlights a $348 billion financing gap for mitigation and adaptation efforts in Pakistan by 2030.

“Limited institutional capacity, slow disbursement rates, and a reliance on debt-based climate finance hinder Pakistan’s access,” Harjeet adds.

What Needs to Change

Pakistan’s solar transition cannot succeed if it excludes the very people who grow its food. Experts say the country must move beyond short-term subsidies and adopt long-term financing mechanisms that make solar irrigation accessible to all.

“By designing inclusive financial mechanisms, ensuring easy access to credit, interest-free loans and efficient subsidy programmes, the government can help small-scale farmers adopt solar, because they need it the most,” concludes Dr Mansoor.

Until then, Pakistan’s small farmers remain stuck in the middle — between a sun that could save them and a diesel engine they can no longer afford to run.

The information and statistics used in this feature report are the sole responsibility of the reporter.

Saba Chaudhary is a freelance journalist based in Pakistan. she tweets at @SaBa_ch_