Agriculture around Pangong Tso is severely restricted by the high altitude, short growing season, rocky soil, and freezing temperatures. True farming is almost non-existent.
In the slightly lower valleys near Durbuk and Tangtse on the way to the lake, locals manage a single summer crop consisting of hardy staples like barley, peas, and root vegetables (potatoes).
Instead of crops, agricultural activity is predominantly pastoral. The region is famous for the rearing of the Changthangi (Pashmina) goat. These goats grow an exceptionally warm, fine undercoat to survive the winter, which is harvested and spun into world-renowned Pashmina (Cashmere) wool. Yaks are also raised for milk, meat, and transport, while sheep are kept for wool. There are no fisheries due to the lake's salinity and the lack of aquatic life.

