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The Agriculture Sector in Pakistan Witnesses Robust Growth in 2023-24

The agriculture sector in Pakistan has experienced strong growth in the fiscal year 2023-24, making a significant contribution to the country’s economy. According to the finance minister, the sector has witnessed an overall increase of 6.25%, playing a vital role in the nation’s GDP, which stands at 24%. The agriculture sector has emerged as a savior for the outgoing fiscal year, showcasing its importance in driving economic growth.

Growth in the Crops Sub-Sector

The recent Economic Survey of Pakistan 2022-23, released on Tuesday, highlights the remarkable growth in the crops sub-sector. This sector has seen an impressive increase of 11.03%, indicating a significant improvement compared to the previous year. Within the crops sub-sector, important crops have witnessed a substantial surge, with a growth rate of 16.82%. This reflects a solid recovery and a significant increase in production.

Contributions from Different Crops

While other crops had a modest growth of 0.90%, the notable contributions came from fruits (8.40%), vegetables (5.77%), and pulses (1.45%). The cotton ginning sector experienced a dramatic increase of 47.23%, marking a massive rebound and boosting the overall crop sub-sector.

Cotton cultivation has increased from 2.1 million hectares to 2.4 million hectares, showing a growth rate of 13.1%. Additionally, its production has recorded a remarkable increase of 108.2%, reaching 10.2 million bales. Cotton now holds a 0.7% share in GDP and 2.9% in agriculture value addition.

Sugarcane, on the other hand, saw a decrease in cultivation area by 10.5%, from 1.3 million hectares last year to 1.2 million hectares this year. Its share in GDP is 0.8%, with 3.5% in agriculture value addition. Production slightly declined by 0.4% to 87.6 million tonnes in 2023-24 from 88.0 million tonnes last year.

Rice has emerged as a promising crop in 2023-24, with its cultivation area increasing by 22.2% to 3.6 million hectares from 3.0 million hectares last year. Production surged by 34.8%, reaching 9.9 million tonnes, up from 7.3 million tonnes. Rice contributes 0.6% to GDP and 2.5% to agriculture value addition.

Maize cultivation decreased by 4.5%, from 1.7 million hectares last year to 1.6 million hectares this year. Production dropped by 10.4%, from 11.0 million tonnes last year to 9.8 million tonnes. Maize contributes 0.7% to GDP and 2.9% to agriculture value addition.

Wheat, being the staple crop, has seen an increase in cultivation area to 9.6 million hectares from last year’s 9.0 million hectares, showing a growth rate of 6.6%. Wheat production stood at 31.4 million tonnes compared to 28.2 million tonnes last year, marking an 11.6% growth. The government has maintained the MSP at Rs3,900/40 kg for 2023-24. Wheat holds a 9.0% share in agriculture and 2.2% in GDP.

Livestock and Other Sectors

Besides the crop sector, the livestock sub-sector has also shown steady growth, increasing by 3.89%. This growth rate is slightly higher than the previous year’s, indicating sustained performance in livestock production. Forestry growth, however, decelerated to 3.05% from 16.63% in the previous year.

Livestock production is a cornerstone of Pakistan’s rural economy, contributing significantly to the livelihoods of over eight million rural families. It accounts for around 35-40% of these families’ total income. The livestock sector has solidified its position as the primary driver of agricultural growth, comprising approximately 60.84% of agricultural value added and 14.63% of the national GDP during FY2024.

The gross value addition of the livestock sector has increased to Rs5,804 billion in 2023-24 from Rs5,587 billion in 2022-23, marking a growth rate of 3.9%. Moreover, the sector’s net foreign exchange earnings account for approximately 1.6% of total exports.

Fishing has also witnessed modest growth, increasing by 0.81% in comparison to the previous year. This indicates ongoing stability in the sector. Adequate water availability during Kharif 2023 has met the requirements of Kharif crops, with water availability reaching 61.9 Million Acre Feet (MAF) compared to 43.3 MAF during Kharif 2022. Additionally, for Rabi 2023-24, water availability recorded a 4.1% increase over the same season last year, totaling 30.6 MAF.

Source: Tribune