Arooj Zulfiqar

Pakistan’s agriculture sector demonstrated significant growth in FY2024, marked by notable achievements in tractor production, agricultural credit disbursement, and crop quality improvements. This robust performance comes

despite challenges such as the cobweb phenomenon affecting cotton sowing areas and a decrease in fertilizer consumption. According to the data released by the Ministry of Finance in a monthly outlook for July FY2024, tractor production soared to 45,529 units, reflecting a substantial 43.5 percent increase from FY2023. Tractor sales witnessed a remarkable rise of 47.0 percent, reaching 45,494 units. This surge underscores the sector’s expansion and increased mechanization efforts aimed at boosting agricultural productivity. Agricultural credit disbursement during Jul-May FY2024 reached an unprecedented Rs1,972.8 billion, marking a 26.0 percent increase compared to the previous year. This significant financial support is expected to enhance the farmers’ capacity to invest in better farming practices and equipment, thereby driving further growth in the sector.

Despite the overall positive trend, the agriculture sector faced challenges due to the cobweb phenomenon, which reduced cotton sowing areas. In Punjab, the sowing area decreased to 1.304 million hectares against a target of 1.680 million hectares, while in Sindh, it dropped to 0.550 million hectares against a target of 0.630 million hectares. This phenomenon, characterized by cyclical fluctuations in planting decisions, impacted the anticipated cotton output. For the Kharif sowing season of 2024 (April-June), urea offtake stood at 1,210 thousand tonnes, 18.1 percent less than Kharif 2023. Similarly, DAP offtake was recorded at 256 thousand tonnes, a decrease of 6.8 percent. Despite these declines, the availability of improved quality cotton seed in both Punjab and Sindh is expected to positively influence the future yields.

The agriculture sector’s growth target for FY2025 is set at 2 percent. Given the high base of the previous year, important and other crops are projected to maintain a reasonable growth pace in 2024-25. Additionally, livestock, fishery, and forestry sectors are anticipated to continue their growth trajectory, supported by a favorable and encouraging environment. In conclusion, the agriculture sector has shown remarkable resilience and growth in FY2024, overcoming various challenges. With targeted support and favorable conditions, the sector is expected to continue its upward trajectory, contributing significantly to the country’s economic stability and development in FY2025 and beyond.

Credit: INP-WealthPk