Pakistan’s rural economy urgently requires remedial measures to channel the labour force more effectively, ensuring maximum productivity. The depletion of vital non-renewable resources exacerbates economic distress, evident in unemployment, underemployment, and disguised unemployment.

Disguised unemployment, closely linked to rural agricultural economies, necessitates strategic interventions. It refers to a situation where additional labour does not increase overall economic output, often due to an excess of workers for too few jobs. This phenomenon is particularly prevalent in the agricultural sector, where more people are employed than necessary. According to the Law of Diminishing Returns, as more labour is added, the marginal productivity increases initially but eventually plateaus and then declines. These additional workers, who contribute little to productivity, need to be redirected into other productive avenues where their skills can be fully utilised.

To address this, it is crucial to create new job opportunities in rural areas outside of agriculture. These jobs should be manageable, complementary to existing rural activities, and capable of making a significant socio-economic impact.

One innovative solution is the establishment of “model village restaurants” that utilise agricultural pastures more effectively. The government should play an initial role in providing confidence, comprehensive guidance, and standard operating procedures (SOPs) for setting up these ventures. Offering tax rebates and other incentives would attract local farmers to invest in small-scale, community-rooted enterprises. This initiative would help shift surplus agricultural labour into more beneficial and valuable business activities. The government should also assist in infrastructure development, such as building access roads, designing village restaurants, and creating inventories, all while incorporating local aesthetics and architecture.

These model village restaurants would embody the essence of rural life. The food would be cooked on wood fires, using dairy products like milk and desi ghee produced on-site. The setting would include traditional elements such as mud crockery, wells, animal cart rides, and locally grown vegetables, along with farm-raised chickens and goats available for purchase or dining. This initiative would engage a wide range of local labour in various capacities, from construction to crafting furniture and pottery, creating new avenues for economic benefit.

Recognising that small farmers may lack the resources to invest in or manage such ventures, small loans could be provided as incentives. Pilot projects could be implemented to test and refine the model before wider adoption. These organic farms could become popular destinations, offering a variety of employment opportunities and revitalising rural economies.

The complementary benefits of such farm restaurants are substantial. They would reconnect younger generations with nature and their cultural roots, offering activities like pottery making and tandoor baking. Urban tourists, eager to experience heritage and culture, would likely spend generously on food, cultural artefacts, and handicrafts, boosting the local economy.

These organic farms would not only provide employment opportunities for surplus labour but also empower village women, allowing them to participate actively in the market by providing food, dairy products, and crafts. Informal services would be formalised, creating jobs for waiters, cooks, helpers, drivers, and logistics staff. Associated businesses, such as shops selling local products like pottery, embroidery, and handwoven baskets, would flourish. The economic activity generated would have numerous complementary benefits, including platforms for talented artists like folk singers and musicians to perform, thereby preserving village culture. Site selection for organic farms and traditional restaurants should be carefully planned along major roads for easy access to urban centres, ensuring business viability. The serenity and natural environment of rural areas must be preserved, with strict development control over adjacent areas to prevent harmful commercialisation.

Rural agrarian economies must be provided with opportunities that increase productivity, improve purchasing power, and enhance living standards. Promoting village restaurants would support entrepreneurship and innovation, generating new value and competitiveness in the economy. Now is the time to foster an environment that encourages surplus labour to start and grow their own businesses, develop new ideas, and gain access to markets, thereby regulating informal labour markets.

Erum Ashfaq

The writer is a Lahore-based Urban Planner, Economist, and Artist. She can be reached at erumashfaq52
@yahoo.com