Arooj Zulfiqar

Pakistan's agriculture sector is experiencing a dynamic phase, as it continues to invest heavily in farming technology while grappling with fluctuations in crop production. The latest data from FY2024 highlights significant advancements in agricultural credit disbursements and machinery imports, alongside challenges in cotton production, reports WealthPK. According to the data released by the Ministry of Finance in a monthly outlook for August, agricultural credit disbursement saw a robust increase of 24.8 percent during FY2024, reaching Rs2,216 billion compared to the previous year. This growth underscores the government's commitment to supporting the farmers' financial needs, fostering greater investment in the sector, and enhancing agricultural productivity. The rise in credit disbursement is a crucial factor in enabling farmers to access modern equipment, quality seeds, and necessary inputs.

Complementing this financial boost, import of agricultural machinery and implements surged by a staggering 122.8 percent to $91.3 million in FY2024. This significant rise indicates a sustained focus on adopting advanced farming technologies, which is expected to pave the way for increasing efficiency and productivity across the agriculture sector. Despite these positive developments, challenges persist in specific crop productions. The urea offtake during the Kharif 2024 season (April-July) registered at 1,822 thousand tonnes, marking a 13.5 percent decrease compared to Kharif 2023. However, DAP (Diammonium Phosphate) offtake presented a more positive trend, with an 8.2 percent increase to 419 thousand tonnes over the same period. These figures highlight a variable performance across different agricultural inputs, impacting overall crop yields. The cotton sector, in particular, has faced significant setbacks this year.

According to the Pakistan Cotton Ginners Association, as of July 15, 2024, the total number of cotton bales dropped from 0.858 million in 2023-24 to 0.442 million in 2024-25, reflecting a substantial decline in production. In Punjab, cotton arrivals decreased to 0.114 million bales from 0.199 million bales last year, while Sindh also witnessed a reduction, with arrivals falling from 0.659 million bales to 0.328 million bales. Despite these challenges, the government remains optimistic about achieving its production targets. Efforts have been made to ensure the timely availability of crucial inputs, such as improved seeds, fertilizers, and adequate agricultural credit, to support the farmers in overcoming these hurdles. The mixed performance in the agriculture sector underscores the need for continued investment in modernizing farming practices and addressing the challenges faced by key crops. As Pakistan navigates through these developments, the focus remains on boosting agricultural productivity and ensuring food security for the nation's growing population.

Credit: INP-WealthPk