agriculture’s ‘best performance’ in 20 years drives economic growth in Economic Survey 2023-24
Published on: June 13, 2024.
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LAHORE: Despite facing challenges in finance, quality inputs, market systems, and research and development, the agriculture sector in Pakistan has witnessed a remarkable growth of 6.3 percent in the fiscal year 2023-24, as stated in the recently released Pakistan Economic Survey 2023-24. This growth can be attributed to the significant increase in the production of wheat, cotton, and rice crops.
The share of the agriculture sector in the gross domestic product (GDP) has also improved, rising from 23.2 percent in FY23 to 24 percent in FY24. This growth of 6.3 percent is the highest in the last 19 years, according to research firm Arif Habib Ltd.
The survey highlights the record growth of 11.6 percent in wheat output, which has increased from 28.2 million tonnes last year to 31.4 million tonnes this year. Cotton production, which was severely affected by floods and rains last year, has also shown a significant growth of 108.2 percent, reaching 10.2 million bales compared to 4.9 million bales last year. The output of rice has increased by 34.8 percent, reaching 9.9 million tonnes compared to 7.3 million tonnes previously.
Alongside the growth in major crops, cotton ginning has witnessed a notable increase of 47.2 percent, contributing to the overall growth of the sector. However, the production of sugarcane and maize has declined by 0.4 percent and 10.4 percent, respectively, due to reduced acreage. Despite this, the yield increase of sugarcane per hectare is encouraging.
The survey also reports a growth of 0.9 percent in other crops, with an 8.4 percent increase in fruits, 5.8 percent in vegetables, and 1.5 percent in pulses.
Water availability has played a crucial role in supporting crop requirements, with an increase to 61.9 million acre-feet (MAF) in Kharif 2023 compared to 43.3 MAF in the previous year. For Rabi 2023-24, water availability was recorded at 30.6 MAF, showing a 4.1 percent increase.
The production of fertilizers has also seen growth, with domestic production increasing by 17.3 percent and fertilizer imports increasing by 23.7 percent. Agricultural lending has gone up by 33.3 percent, reflecting the commitment to support the sector financially.
The livestock sector, accounting for 60.8 percent of the agricultural sector and 14.6 percent of GDP, has witnessed a growth of 3.9 percent. On the other hand, the forestry sector has grown by 3.05 percent, significantly lower than the previous year, and the fishing sector has shown a growth of 0.81 percent.
In terms of international trade, Pakistan has exported 720.9 million tonnes of fish, with major buyers including China, Thailand, Malaysia, the Middle East, Sri Lanka, and Japan. This has earned the country approximately $534.22 million.
The agriculture sector is seeking cooperation with China through the China-Pakistan Economic Corridor (CPEC) to further enhance its technological base. Several initiatives are under development, such as the establishment of the Centre for Sustainable Control of Plant Pest and Diseases, Juncao Technology Demonstration and Extension Project, Development of Foot and Mouth Disease Free Zones, mechanization of harvesting and post-harvesting processes, and the establishment of the Pak-China Modern Agricultural Science and Technology Transferring Centre.
The growth of the agriculture sector in Pakistan is not without its challenges, but the achievements of the past year demonstrate its potential. With continuous improvements in finance, quality inputs, market systems, research, and development, the sector can further contribute to the country’s economic growth.
Source: Dawn
