Arooj Zulfiqar

Pakistan’s agriculture sector demonstrated robust growth in the outgoing fiscal year FY24, showcasing a commendable recovery attributed to government initiatives, improved input supply, and increased credit disbursement to farmers. According to the data released by the Ministry of Finance in its monthly outlook for June, the sector achieved strong quarterly growth rates of 8.6% in Q1, 5.8% in Q2, and 3.9% in Q3, leading to an overall growth of 6.3% for the year. The government’s proactive measures and favourable weather conditions played a crucial role in this growth. Significant strides were made in the production of essential crops, with cotton, rice, and wheat showing healthy growth. Conversely, sugarcane and maize output experienced slight declines. Farm tractor production saw a remarkable increase of 44.5% during the July-May FY24, reaching a total of 42,345 units. Similarly, the sales surged by 48.0% to 41,360 units, indicating a thriving market for agricultural machinery. Agricultural credit disbursement surged 34.5% to Rs1,785.8 billion during the July-April period of FY24 compared to the same period last year.

This influx of credit has significantly empowered farmers to invest in modern farming techniques and equipment, thus enhancing productivity. During the Kharif season (April-May 2024), urea offtake stood at 728,000 tonnes, marking a 16.1% decrease compared to Kharif 2023. On the other hand, DAP offtake increased by 14.1% to 133,000 tonnes, compared to the previous Kharif season. These mixed trends highlight the dynamic nature of fertilizer usage in the country. The agriculture sector’s performance in FY24 underscores the positive impact of government policies and favourable conditions on Pakistan’s agricultural outlook. With continued support and strategic initiatives, the sector is poised for sustained growth, contributing significantly to the country’s economy and food security. Continued investments in infrastructure, technology, and sustainable practices will be crucial to maintaining this positive momentum. With ongoing support, Pakistan’s agriculture sector is well-positioned to contribute significantly to national development goals and ensure a robust and resilient agricultural outlook for the future.

Credit: INP-WealthPk