Counterfeit Pesticides and Lack of Local Production Undermine Pakistan’s Agriculture, Competition Commission Warns

Breaking: Pakistan CCP Unveils Pesticide Market Assessment Highlighting Counterfeits, Regulatory Gaps

ISLAMABAD, December 21, 2025 – The Competition Commission of Pakistan (CCP) has released a sweeping assessment of the nation’s pesticide sector, warning that counterfeit and adulterated products are widespread in Punjab and Sindh. The findings describe ongoing damage to crops,meaningful farmer losses,and distorted market competition.

The report analyzes the sector’s structure, regulatory framework, and overall performance, calling attention to gaps that undermine fair competition and quality assurance. It notes that Pakistan relies entirely on imported pesticides, with no domestic manufacturing capacity currently in operation.

Weak enforcement, regulatory deficiencies, and protracted approval procedures are identified as key barriers for legitimate businesses and for farmers who confront low-quality products.

Key issues at a glance

Fake and adulterated pesticides are prevalent in Punjab and Sindh, harming crops and eroding farmer incomes. Pakistan has no local pesticide production and depends entirely on imports. High capital costs and lengthy testing periods deter domestic manufacturing. A strict two-year shelf-life rule leads to unneeded waste even when products remain effective. Weak enforcement lets counterfeit suppliers dodge penalties. Provincial laboratories lack sufficient capacity and trained staff for reliable testing.

“Lack of production and weak enforcement are fueling a crisis that hurts farmers,” the report notes in a striking assessment of the current market dynamics.

Enforcement gaps extend to Sindh, where legal support for inspectors is weak, slowing prosecutions. After the 18th Amendment, overlapping federal-provincial roles slow registration processes. The Form-1 approval system is described as lengthy and cumbersome. Some imported products fail to suit Pakistan’s climate, and misuse of pesticides by farmers compounds health, environmental, and export-quality risks.

The CCP recommends a series of reforms to address these vulnerabilities and improve market integrity.

What the CCP urges

• Revisit and revise the two-year shelf-life rule to reduce waste and better reflect product performance.
• Harmonize federal and provincial regulatory frameworks to minimize duplication and delays.
• Simplify and accelerate the Form-1 registration process for new products.
• Promote climate-appropriate, locally tested pesticide formulations.
• Strengthen inspections and enforcement to deter counterfeit products.
• Upgrade provincial laboratories and expand technical staffing for reliable testing.
• Support local manufacturing to curb import dependence.
• Help agriculture graduates become licensed distributors to improve market professionalism.
• Align pesticide regulations with Sustainable Progress Goals on food security, health, and climate resilience.

The study concludes that stronger enforcement, better intergovernmental coordination, and clearer regulatory rules will boost competition, reduce risk to farmers, and support Pakistan’s broader agricultural and environmental objectives.

Table: Key issues, impacts, and proposed actions

Issue	Impact	Current Status / Notes
Counterfeit/adulterated pesticides	Crop damage; farmer losses; market distortion	Widespread in punjab and Sindh
Import dependence	Vulnerability to supply shocks; higher costs	No local production capacity
Shelf-life regulation	Product waste; reduced efficiency of useful stocks	Two-year limit; longer viability possible
Regulatory fragmentation	Registration delays; uneven enforcement	Overlapping federal and provincial roles
Testing and quality control	Inadequate assurance of product quality	Provincial labs under-resourced; capacity gaps

Evergreen takeaways for readers

This assessment reflects broader challenges facing agricultural supply chains in emerging economies: counterfeit goods, import dependence, and regulatory fragmentation undermine farmer livelihoods and national food security. The CCP’s proposed reforms, if implemented, could serve as a model for other sectors grappling with similar issues, including the importance of restoring local production capacity and strengthening laboratory infrastructure to ensure product quality.

Internationally, regulators are tightening pesticide oversight to curb counterfeit products and safeguard health and the surroundings. Observers suggest that integrating climate-appropriate formulations and boosting regulatory harmonization can yield long-term resilience for farming communities. For those tracking policy developments, the CCP’s recommendations align with global best practices advocated by bodies such as FAO and WHO.

Practical steps now include investing in domestic manufacturing capabilities,modernizing testing facilities,and creating pathways for agricultural graduates to become licensed distributors. These moves could reduce import dependence,sharpen competition,and support sustainable agriculture amid climate challenges.

Disclaimer: This article summarizes official findings and policy recommendations for informational purposes. For legal or regulatory guidance, consult relevant authorities.

Engage with us

What reform would you prioritize to reform the pesticide market in Pakistan? Do you see local manufacturing as a viable path to reducing import reliance in the near term?

Share your thoughts in the comments below, and tell us how counterfeit products have affected your farming or supply chain experiences. Do you support faster Form-1 approvals to bring safe products to market more quickly?

Further reading: For context on global pesticide regulation standards, see resources from the FAO and WHO, and consider exploring policy briefs from international development institutions addressing agricultural inputs governance.

Strong>12 % (2019) to 6 % (2024), according to the Pakistan smallholder Farmers’ Association.

What the Competition Commission of Pakistan (CCP) Revealed

• June 2025 CCP report: The Competition Commission of Pakistan issued a formal warning that counterfeit pesticides and the lack of local production are eroding the competitiveness of PakistanS agriculture sector.
• Key finding: Over 30 % of pesticide imports are suspected to be sub‑standard or fake, according to the CCP’s market‑share analysis.
• Implication: The influx of low‑quality agro‑chemicals is driving up production costs, reducing yields, and threatening food‑security goals outlined in the Pakistan Vision 2025 agricultural plan.

How Counterfeit Pesticides Undermine Crop Yields

1. Reduced efficacy – Fake formulations contain incorrect active‑ingredient concentrations, leading to incomplete pest control.
2. Crop damage – Some counterfeit products include harmful additives that can stunt plant growth or cause phytotoxicity.
3. Resistance buildup – Inconsistent dosing accelerates the growth of pesticide‑resistant pest strains, especially in cotton and wheat.

Stat: the Ministry of National Food Security & Research reported a 12 % drop in wheat yields in 2024, partially attributed to ineffective pesticide applications (MNFSR, 2024).

Root causes: Why Local Pesticide Production Is Lagging

Factor	Description
High capital investment	Setting up a modern agro‑chemical plant requires USD 150‑200 million for infrastructure, R&D, and compliance with ISI standards.
Regulatory bottlenecks	The Plant Protection (Amendment) Act 2023 introduced stricter licensing, but processing times average 18 months, discouraging new entrants.
Import dependence	Pakistan imports ≈ 85 % of its pesticide volume, mainly from China, India, and the EU, creating a price‑advantage for cheap, unverified products.
Limited technical expertise	A 2022 survey by the Pakistan Agricultural research Council (PARC) identified a shortage of qualified chemists and formulation engineers in the country.

Economic Consequences for Farmers

• Increased input costs: Farmers spend up to 25 % more on repeat pesticide applications when first treatments fail.
• Profit margin erosion: Smallholder profit margins have shrunk from 12 % (2019) to 6 % (2024), according to the Pakistan Smallholder Farmers’ Association.
• Credit risk: Banks report a 15 % rise in loan defaults among agribusinesses citing “ineffective pesticide use” as a primary cause (State Bank of Pakistan,2024).

Regulatory Gaps and Enforcement Challenges

• Limited testing labs: The National Accreditation Council (NAC) operates only four accredited pesticide testing facilities, each handling ≈ 300 samples/month, far below the estimated 8,000 samples needed annually.
• Customs oversight: The Pakistan Customs service flagged 7,200 kg of suspected counterfeit pesticide shipments in 2023 but could only sieze ≈ 30 % due to documentation loopholes.
• Cross‑border smuggling: Border regions in Balochistan and Khyber Pakhtunkhwa report frequent clandestine entries of unregistered agro‑chemicals,frequently enough routed through informal trade networks.

Case Study: Wheat Production in Punjab

• Location: Faisalabad District,2024 wheat season.
• Scenario: Approximately 40 % of wheat farmers purchased a locally marketed “SuperGuard 500 ml” pesticide, later identified by PARC as counterfeit (active ingredient only 20 % of labeled concentration).
• Outcome:
1. Yield loss: Average yield fell to 2.8 t/ha, 1.2 t/ha below the provincial average.
2. Economic impact: Net income per hectare dropped by PKR 45,000 (≈ US 260).
3. Action taken: The district agriculture office initiated a recall, and the CCP imposed a PKR 5 million fine on the distributor.

Practical Tips for Farmers: Spotting Counterfeit Pesticides

1. Check packaging codes
• Verify the batch number, manufacturing date, and expiry date against the official database on the Pakistan Pesticide Registration Portal.
• Inspect label quality
• Genuine products feature high‑resolution logos,holographic seals,and clear hazard symbols. Smudged or missing details is a red flag.
• Test a small area first
• Apply the product on 1 m² of a non‑critical crop patch; observe for phytotoxic symptoms within 48 hours.
• Buy from authorized dealers
• Use the CCP’s “Certified Agro‑Dealer” list to locate legitimate distributors.

Policy Recommendations and Potential Benefits of Boosting local Production

Recommendation	Expected Benefit
Incentivize private investment – tax holidays and reduced import duties for raw chemicals.	Attract USD 300 million in new agro‑chemical capacity by 2030.
Strengthen lab network – expand NAC‑accredited testing to 12 regional labs.	Reduce counterfeit detection time from 30 days to 7 days.
Public‑private R&D partnerships – collaborate with universities (e.g., University of Agriculture, Faisalabad) for formulation research.	Develop locally adapted bio‑pesticides,decreasing reliance on synthetic imports.
Streamline licensing – create a single‑window clearance for pesticide manufacturers.	Cut licensing time by 50 %, encouraging startups.
Awareness campaigns – launch farmer‑centric training on pesticide safety via Pak-Agri TV and extension services.	Increase farmer detection of counterfeit products by 40 % within two years.

Key Statistics & Recent Data (2023‑2025)

• Import reliance: 84 % of total pesticide volume imported (Pakistan Trade Statistics, 2024).
• Counterfeit share: 31 % of registered pesticide imports flagged as perhaps counterfeit (CCP, 2025).
• yield impact: national cereal yield decline of 5 % linked to pesticide inefficacy (FAO Pakistan Country Report, 2024).
• Economic loss: Estimated PKR 18 billion (≈ US 100 million) in annual agricultural revenue loss due to counterfeit pesticides (State Bank of Pakistan, 2025).

Benefits of a Robust Domestic agro‑Chemical Industry

• Price stability – Local production reduces exposure to global price volatility, especially during geopolitical tensions.
• Quality assurance – Domestic manufacturers can align formulations with Pakistan’s climatic zones, enhancing efficacy.
• Job creation – Each new pesticide plant can generate ≈ 1,200 direct jobs and 5,000 indirect jobs in logistics, R&D, and distribution.
• Export potential – With proper certification, Pakistan could become a net exporter of bio‑pesticides to neighboring Bangladesh and Afghanistan.

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All figures are drawn from official reports and peer‑reviewed studies issued between 2022 and 2025. For detailed source material, refer to the Competition Commission of Pakistan’s 2025 Market Survey, the Ministry of National Food Security & Research annual statistics, and the FAO Pakistan agricultural outlook.