Chapter 02

Agriculture

Pakistan has a diversified economic base with robust growth in 2023-24, with an overall
the agriculture sector, contributing 24 percent in increase of 6.25 percent. Notably, the crops saw
GDP and 37.4 percent in employment. The a remarkable growth of 11.03 percent, a
predominance of agriculture in the economy significant improvement compared to the
indicates that agricultural growth is a critical previous year. Within this sub-sector, important
driver of economic growth, employment, and crops experienced a substantial surge, growing
poverty reduction, given its linkages with the by 16.82 percent, showing a solid recovery and
other sectors. The promising crop production significant production increase. Other crops had
during the Kharif season of 2023 exhibited
a modest growth of 0.90 percent, showing
steady export growth – led by rice – while cotton
stability but not contributing as significantly to
imports decreased significantly due to better
domestic output. Credit facilitation, certified the overall growth. The main attributes of this
seeds, fertilizer use, and on-farm management growth include fruits (8.40 percent), vegetables
techniques played the primary role in better yield (5.77 percent), and pulses (1.45 percent). Cotton
of crops, that may be sustained depending on the ginning saw a remarkable 47.23 percent
agriculture policy of the government and the increase, reflecting a massive rebound from
self-reliance of the farmers. Better economic previous declines, and significantly boosting the
returns have motivated farmers to go for other overall crop sub-sector.
crops, indicating diversification when put into
perspective. The livestock sub-sector maintained steady
growth, increasing by 3.89 percent, slightly
Focusing on improving yield through higher than its growth in the previous year. This
mechanizing farming and focusing on food indicates sustained and stable performance in
security are priorities of the government. As livestock production. Furthermore, forestry
such, the government has been focusing on growth decelerated to 3.05 percent from a peak
providing targeted subsidies for purchasing of 16.63 percent in the previous year. While this
inputs at affordable prices, whereas support represents a slowdown, it still contributed
prices, where required, are also announced to significantly to the overall agricultural growth.
ensure the profitability of the farmers. The Fishing also saw a modest increase, growing by
prioritization of the agriculture sector, as a
0.81 percent, slightly higher than the previous
primary focus of the Special Investment
Facilitation Council (SIFC), shows the year's growth. As such, this steady growth
government's seriousness to make the indicates ongoing stability in fishing (Table 2.1).
agriculture sector the backbone of the economy.
Water availability during Kharif 2023 increased
However, changing climatic patterns and natural
disasters will remain threats, highlighting the to 61.9 Million Acre Feet (MAF) from 43.3
importance of mitigation and adaptation MAF during Kharif 2022 (Flood year) and
measures. remained at par with the requirements of Kharif
crops. While, for Rabi 2023-24, it is recorded at
2.1 Agriculture Performance 2023-24 30.6 MAF, showing an increase of 4.1 percent
over the same season last year (Table 2.2).
The agriculture sector in Pakistan witnessed

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Pakistan Economic Survey 2023-24

Table 2.1: Agriculture Growth (Base=2015-16) %

Sector 2018-19 2019-20 2020-21 2021-22 2022-23 (R) 2023-24 (P)
Agriculture 0.94 3.91 3.52 4.21 2.27 6.25
1.Crops (i+ii+iii) -4.38 6.32 5.83 8.22 -1.03 11.03
i) Important Crops -8.59 5.24 5.82 5.50 0.34 16.82
ii) Other Crops 3.62 9.21 7.95 11.90 -0.92 0.90
iii) Cotton Ginning -11.23 -4.06 -13.08 9.22 -22.84 47.23
2.Livestock 3.65 2.80 2.38 2.25 3.70 3.89
3.Forestry 7.22 3.36 3.35 0.70 16.63 3.05
4.Fishing 0.78 0.63 0.73 0.35 0.60 0.81
R: Revised, P: Provisional
Source: Pakistan Bureau of Statistics

Table 2.2: Actual Surface Water Availability Million Acre Feet

% increase/decrease
Period Kharif Rabi Total over the average system usage
(103.5 MAF)
Average system usage 67.1 36.4 103.5 -
2015-16 65.5 32.9 98.4 -4.9
2016-17 71.4 29.7 101.1 -2.3
2017-18 70.0 24.2 94.2 -9.0
2018-19 59.6 24.8 84.4 -18.5
2019-20 65.2 29.2 94.4 -8.8
2020-21 65.1 31.2 96.3 -7.0
2021-22 65.1 27.4 92.5 -10.6
2022-23 43.3 29.4 72.7 -29.8
2023-24 61.9 30.6 92.5 -10.6
Source: Indus River System Authority

2.2 Crop Position million ha last year, showing a growth of only

13.1 percent. In contrast, its production recorded
During 2023-24, the critical crops contributed
a remarkable increase of 108.2 percent to 10.2
20.67 percent to value addition in agriculture and
million bales (Fig-2.1). It has share of 0.7
4.97 percent to GDP. Other crops contributed
percent in GDP and 2.9 percent in agriculture
13.51 percent in value addition to agriculture and
value addition. The increase in the area under
3.25 percent in GDP.
cultivation has contributed to increased cotton
2.2-1 Important Crops production. This overall improvement in
production is linked to a better quality of pest-
i) Cotton resilient seeds, favourable weather conditions,
During 2023-24, cotton area cultivation and attractive fixation of the intervention price
increased to 2.4 million hectares (ha) against 2.1 of cotton (Phutti) at Rs 8,500/40 kg at the start of
the sowing season.

Fig-2.1: Cotton Crop Production (000 Bales) Area (000 ha) Yield (Kg/ha) rhs

12,000 800
700
10,000
600
8,000
500
6,000 400
2,517

2,424

300
2,144
2,079

1,937

4,000
200
10,223
9,148

7,064

8,329

4,910

2,000
100
0 0
2019-20 2020-21 2021-22 2022-23 2023-24(P )
Source: PBS

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 Agriculture

ii) Sugarcane declined to 0.4 percent in 2023-24 to 87.6

million tonnes over 88.0 million tonnes last year.
During 2023-24, sugarcane was cultivated on 1.2
Though the total production area has decreased,
million ha, showing a decrease of 10.5 percent
the yield increase (Kg/ha) is encouraging,
compared to 1.3 million ha last year. It has share
highlighting the optimal agriculture policy mix
of 0.8 percent in GDP and 3.5 percent in
(Fig-2.2).
agriculture value addition. Its production slightly

Fig-2.2: Sugarcane Crop

100,000 76,000
90,000 74,000
80,000 72,000
70,000 70,000
60,000
68,000
50,000
66,000
40,000
30,000 64,000
20,000 62,000
66,380

81,009

88,651

87,981

87,638
1,319
1,260

1,180
1,165
1,040

10,000 60,000
0 58,000
2019-20 2020-21 2021-22 2022-23 2023-24(P )

Source: PBS Production (000 tonnes) Area (000 ha) Yield (Kg/ha) rhs

iii) Rice has share of 0.6 percent in GDP and 2.5 percent
in agriculture value addition. The rise in rice
Rice remained the promising crop 2023-24; its
production was due to increased area under
area significantly increased by 22.2 percent to
cultivation, supported by higher rice prices,
3.6 million ha from 3.0 million ha. Its production
favourable monsoon rains, and better export
increased 34.8 percent to 9.9 million tonnes in
prospects since last year. (Fig-2.3)
2023-24 against 7.3 million tonnes last year. It

Fig-2.3: Rice Crop

12,000 2,750
2,700
10,000
2,650
8,000 2,600
2,550
6,000
2,500
3,335 3,537 3,637
4,000 3,034 2,976 2,450
2,400
2,000
7,414 8,420 9,323 7,322 9,869
2,350
0 2,300
2019-20 2020-21 2021-22 2022-23 2023-24(P )

Source: PBS Production (000 tonnes) Area (000 ha) Yield (Kg/ha) rhs

v) Maize tonnes from 11.0 million last year. It has share of

0.7 percent in GDP and 2.9 percent in agriculture
During 2023-24, maize crop was cultivated on
value addition. The decline in production is due
1.6 million ha, showing a decrease of 4.5 percent
to less cultivation than the previous year (Fig-
over last year’s cultivation of 1.7 million ha. Its
2.4).
production declined 10.4 percent to 9.8 million

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Pakistan Economic Survey 2023-24

Fig-2.4: Maize Crop

12,000 6,600

10,000 6,400
6,200
8,000
6,000
6,000
5,800
4,000

1,719
1,653

1,641
1,418
1,404

5,600

10,985
2,000
7,883

8,940

9,525

9,847
5,400
0 5,200
2019-20 2020-21 2021-22 2022-23 2023-24(P )

Source: PBS Production (000 tonnes) Area (000 ha) Yield (Kg/ha) rhs

iv) Wheat 24. A dry spell in December 2024 could hurt its
yield. Nonetheless, considering the situation
During 2023-24, wheat was sown at 9.6 million
during the sowing season regarding weather
ha against last year’s area of 9.0 million ha,
conditions, soil moisture, input availability, and
showing an increase of 6.6 percent. Wheat
the sown area in various provinces, wheat
production stood at 31.4 million tonnes
production remained promising, barring any
compared to 28.2 million tonnes last year, and a
unexpected lousy weather at harvest time. It may
growth of 11.6 was observed in wheat
be worth noting that this crop has 9.0 percent
production (Fig-2.5). The government has
share in agriculture and 2.2 percent in GDP.
maintained the MSP at Rs 3,900/40 kg for 2023-

Fig-2.5: Wheat Crop

35,000 3,300

30,000 3,200

25,000 3,100

20,000 3,000

15,000 2,900
8,805 9,168 8,977 9,033 9,632
10,000 2,800

5,000 2,700
25,248 27,464 26,209 28,161 31,438
0 2,600
2019-20 2020-21 2021-22 2022-23 2023-24(P )

Source: PBS Production (000 tonnes) Area (000 ha) Yield (Kg/ha) rhs

2.2-2 Other Crops area sown. However, the production of Tobacco

retained its level last year. Mash, Onion, Moong,
During 2023-24, the production of Bajra and
and Potato production increased by 31.9 percent,
Barley increased to 14.8 percent and 6.8 percent
20.4 percent,13.6 percent, and 1.5 percent,
to 294 thousand tonnes and 42 thousand tonnes,
respectively. However, a decline has been
respectively, compared to last year. The
witnessed in the production of Masoor and
production of Rapeseed & Mustard, Jawar, and
Chillies by 11.9 percent and 15.3 percent,
Gram declined by 44.5 percent, 20.6 percent, and
respectively (Table 2.3).
5.5 percent, respectively, due to a decline in the

24
 Agriculture

Table 2.3: Area and Production of Other Kharif and Rabi Crops Area: 000 Hectares; Production: 000 Tonnes
2022-23 2023-24(P) % Change in
Crops
Area Production Area Production production
Bajra 241 256 238 294 14.8
Jowar 59 49 47 39 -20.6
Gram 843 244 794 230 -5.5
Barley 41 40 44 42 6.8
Rapeseed & Mustard 613 673 352 373 -44.5
Tobacco 46 152 46 152 0.0
Masoor 7.4 4.7 6.6 4.1 -11.9
Moong 218 135 201 153 13.6
Mash 7.0 4.2 7.0 5.6 31.9
Potato 341 8,320 339 8,441 1.5
Onion 136 1,843 142 2,220 20.4
Chillies 48 109.6 49 92.8 -15.3
P: Provisional
Source: Pakistan Bureau of Statistics

i) Oilseeds production during 2023-24 will remain at 0.471

million tonnes. The total availability of edible oil
During 2023-24 (July-March), 2.717 million
during FY 2024 (July-March) from imports and
tonnes of edible oil (including oil extracted from
local production is estimated at 3.188 million
imported oilseed) of value Rs 794 billion (US $
tonnes (Table 2.4).
2.809 billion) was imported. Local edible oil

Table 2.4: Area and Production of Major Oilseed Crops 000 Tonnes
2022-23 2023-24 (P)
Crops Area Production Area Production
(000 Acres) Seed Oil (000 Acres) Seed Oil
Cottonseed 5,312 1,296 156 5,849 2,142 257
Rapeseed & Mustard 1,332 675 243 850.8 416 150
Sunflower 187 133 51 155.0 98 37
Canola 205 141 54 108.5 72 27
Total 7,036 2,245 504 6,963 2,728 471
P: Provisional
Source: Pakistan Oilseed Department (POD), Pakistan Bureau of Statistics

Box-I: Oilseeds Development

The government is striving hard to increase oilseed production in the country. M/o NFS&R has proposed the
first-ever comprehensive National Oilseed Policy, which will be submitted to the competent forum for
approval. The policy will focus on enhancing the production of edible oils and reducing dependence on
imports, improving the profitability of the oilseed growers, access to the credit facility, availability of good
quality sowing seed at reasonable prices, and dissemination of the latest approved production technology to
the oilseed growers. Another key feature of the policy is to recommend measures for improving the quality of
edible oils to protect people's health and rationalize consumption.
Furthermore, a new project to introduce soybean production in the country is being prepared to meet our
poultry industry and edible oil requirements. M/o NFS&R is also considering extending the National Oilseed
Enhancement Programme (NOEP) to sustain the momentum gained during the last four years in enhancing
the area and production of the oilseed in the country.
Source: Pakistan Oilseed Department (POD), M/o NFS&R

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Pakistan Economic Survey 2023-24

2.3 Livestock and Poultry veterinary health coverage, husbandry practices,

animal breeding practices, assisted reproductive
2.3-1 Livestock
techniques (Embro Transfer Technique, In Virto
Animal husbandry is a cornerstone of Pakistan's Fertilization, etc.), artificial insemination
rural economy, with more than 8 million rural services, use of balanced ration for animal
families deeply engaged in livestock production. feeding, and controlling livestock diseases such
This sector is a vital lifeline for these families, as FMDE, PPR, LSD, and Avian Influenza.
contributing significantly to their livelihoods by
accounting for around 35-40 percent of their The primary objective is to leverage the potential
total income. In the broader economic landscape, of the livestock sector for economic growth,
the livestock sector has solidified its position as food security, and rural socioeconomic uplift. To
the primary driver of agricultural growth, address investment-related issues in the value-
comprising approximately 60.84 percent of the added livestock export sector, the government is
agricultural value added and 14.63 percent of the considering developing export meat processing
national GDP during FY2024. zones and disease-free zones and compartments
for FMD, PPR, and HPAI, among others, as well
The gross value addition of the livestock sector as facilitating the establishment of modern
has shown an increase, rising to Rs 5,804 billion slaughterhouses based on the industry's
in 2023-24 from Rs 5,587 billion in 2022-23, requirements. The government also provides
marking a growth rate of 3.9 percent. Moreover, various schemes through the financial sector for
the sector's net foreign exchange earnings make a limited period to boost the livestock sector.
a meaningful contribution, accounting for
approximately 1.6 percent of the total exports in The focus of the present government is on breed
the country. improvement for enhanced productivity,
establishing a nucleus herd, identifying breeds
The government has recognized the inherent well adapted to various agro-ecological zones of
potential of this sector for economic growth, Pakistan, and importing high-yielding exotic
food security, and poverty alleviation in the dairy, beef, mutton breeds, and genetic materials
country and has accordingly focused on its (semen, ova, embryos). By implementing these
development. The overall strategy for livestock measures, the government aims to stimulate
development revolves around promoting growth in the livestock sector, generate
"private sector-led development with the public employment opportunities, and contribute to the
sector providing an enabling environment country's overall economic growth and food
through policy interventions." Regulatory security. The national herd population of
measures have been implemented to enhance per livestock for the last three years is given in Table
unit animal productivity by improving 2.5.

Table 2.5: Estimated Livestock Population million numbers

Species 2021-221 2022-231 2023-241
Cattle 53.4 55.5 57.5
Buffalo 43.7 45.0 46.3
Sheep 31.9 32.3 32.7
Goat 82.5 84.7 87.0
Camels 1.1 1.1 1.2
Horses 0.4 0.4 0.4
Asses 5.7 5.8 5.9
Mules 0.2 0.2 0.2
1: Estimated figure based on inter-census growth rate of Livestock Census 1996 & 2006

Source: Ministry of National Food Security & Research

The position of milk and meat production for the last three years is given in Table 2.6.

26
 Agriculture

Table 2.6: Estimated Milk and Meat Production 000 Tonnes

Species 2021-221 2022-231 2023-241
Milk (Gross Production) 65,745 67,873 70,071
Cow 24,238 25,151 26,099
Buffalo 39,503 40,678 41,887
Sheep2 42 42 42
Goat 1,018 1,046 1,074
Camel2 944 956 956
Milk (Human Consumption)3 52,996 54,707 56,474
Cow 19,390 20,121 20,880
Buffalo 31,603 32,542 33,509
Sheep 42 42 42
Goat 1,018 1,046 1,074
Camel 944 956 968
Meat4 5,219 5,504 5,809
Beef 2,461 2,544 2,630
Mutton 782 799 817
Poultry meat 1,977 2,160 2,362
1: The milk and meat production figures for the indicated years are calculated by applying milk production parameters to the projected
population of respective years based on the inter-census growth rate of Livestock Census 1996 & 2006.
2: The figures for the milk production for the indicated years are calculated after adding milk production from camel and sheep to the
statistics reported in the Livestock Census 2006.
3: Milk for human consumption is derived by subtracting 20 percent of wastage (15 percent from faulty transportation and lack of chilling
facilities and 5 percent from suckling calf nourishment) from the gross milk production of cows and buffalo.
4: The figures for meat production are for red meat and do not include edible offal.
Source: Ministry of National Food Security & Research

The estimated production of other livestock products for the last three years is given in Table 2.7.

Table 2.7: Estimated Livestock Products Production

Products Units 2021-221 2022-231 2023-241
Eggs million Nos. 22,512 23,819 25,212
Hides 000 Nos. 19,384 20,039 20,717
Cattle 000 Nos. 10,127 10,509 10,905
Buffalo 000 Nos. 9,142 9,414 9,694
Camels 000 Nos. 115 117 118
Skins 000 Nos. 62,250 63,697 65,181
Sheep Skin 000 Nos. 12,088 12,231 12,376
Goat Skin 000 Nos. 31,784 32,645 33,530
Fancy Skin 000 Nos. 18,377 18,821 19,275
Lamb Skin 000 Nos. 3,590 3,633 3,676
Kid Skin 000 Nos. 14,787 15,188 15,599
Wool 000 Tonnes 48.4 49.0 49.6
Hair 000 Tonnes 31.0 31.8 32.7
Edible Offal’s 000 Tonnes 465 478 492
Blood 000 Tonnes 77.0 79.0 81.0
Casings 000 Nos. 62,888 64,351 64,851
Guts 000 Nos. 20,599 21,292 22,009
Horns & Hooves 000 Tonnes 68.2 70.2 72.3
Bones 000 Tonnes 1,020.7 1,052.0 1,084.3
Fats 000 Tonnes 322.9 332.5 342.5
Dung 000 Tonnes 1,448 1,493 1,540
Urine 000 Tonnes 437 450 464
Head & Trotters 000 Tonnes 290.4 298.7 307.2
Ducks, Drakes & Ducklings million Nos. 0.35 0.34 0.32
1: The figures for livestock products for the indicated years were calculated by applying production parameters to the projected
population of respective years.
Source: Ministry of National Food Security &Research

27
Pakistan Economic Survey 2023-24

2.3-2 Poultry critical areas such as disease control, cutting-

edge technology for poultry production in
The poultry sector is a vibrant component of the
controlled environments, processing and value
livestock industry, providing employment
addition, improving poultry husbandry practices,
opportunities to over 1.5 million people in the
and expanding product diversification.
country. With a substantial investment of more
than Rs 1,056 billion, this industry has Despite its growth and potential, the poultry
experienced impressive growth, averaging a sector in Pakistan faces various challenges,
remarkable 7.3 percent annual growth rate over including disease outbreaks, feed quality issues,
the past decade. This expansion has led to high production costs, non-availability of locally
Pakistan becoming the eleventh largest poultry grown crops like soybeans, and market
producer in the world, with vast potential for fluctuations. Addressing these challenges is
future growth and advancement. The poultry essential for sustaining the sector's growth and
sector contributes around 40.7 percent of the ensuring food security in the country. The
country’s gross meat production. estimated production of commercial and rural
poultry products for the last three years is shown
To further strengthen and develop this industry,
in Table 2.8.
the poultry development strategy focuses on
Table 2.8: Estimated Domestic/Rural & Commercial Poultry
Type Units 2021-221 2022-231 2023-241
Domestic Poultry million Nos. 92.62 94.04 95.50
Cocks million Nos. 13.20 13.55 13.92
Hens million Nos. 45.52 46.34 47.17
Chicken million Nos. 33.90 34.15 34.41
Eggs2 million Nos. 4,552 4,634 4,717
Meat 000 Tonnes 129.76 132.36 135.01
Duck, Drake & Duckling million Nos. 0.35 0.34 0.32
Eggs2 million Nos. 15.78 15.12 14.49
Meat 000 Tonnes 0.48 0.46 0.44
Commercial Poultry million Nos. 1,632.06 1,792.46 1,968.71
Layers million Nos. 68.49 73.28 78.41
Broilers million Nos. 1,548.51 1,703.36 1,873.69
Breeding Stock million Nos. 15.06 15.81 16.61
Day Old Chicks million Nos. 1,617.41 1,779.16 1,957.07
Eggs2 million Nos. 17,944 19,170 20,480
Meat 000 Tonnes 1,846.48 2,027.57 2,226.54
Total Poultry
Day Old Chicks million Nos. 1,651 1,813 1,991
Poultry Birds million Nos. 1,725 1,887 2,065
Eggs million Nos. 22,512 23,819 25,212
Poultry Meat 000 Tonnes 1,977 2,160 2,362
1: The figures for the indicated years are statistically calculated using the statistics for 2005-06.
2: The figures for Eggs (Farming) and Eggs (Desi) are calculated using the poultry parameters for egg production.
Source: Ministry of National Food Security & Research
Ongoing Projects of Livestock Following the successful implementation of
Phase-I, the UK government has allocated an
Antimicrobial Resistance (AMR) DAI Pakistan,
additional 6 million pounds sterling grant for
in collaboration with the M/o NFS&R, executed
Phase II of the Fleming Fund Country Grant
the Fleming Fund Country Grant Pakistan
(FFCG), which began in January 2024 and is
Phase-I (2019-June 2023), aimed at combating
scheduled to conclude in December 2025. This
antimicrobial resistance (AMR). Key
phase emphasizes producing high-quality data,
achievements of this phase include developing
conducting thorough analysis, fostering data
surveillance strategies, refurbishing laboratories,
sharing, and ensuring sustainable investments.
conducting surveys, and initiating advocacy
efforts.

28
 Agriculture

TCP / PAK / 3804 - FAO Pakistan successfully strengths, gaps, opportunities, and challenges.
executed the "Support Development and Piloting The proposed system utilizes the latest
Pakistan Animal Identification and Traceability technological advancements and enables real-
System (PAITS)" project to establish a robust time animal disease reporting. This facilitates
animal identification and traceability system in appropriate and timely actions for disease
Pakistan. With a budget of US$ 231,000, the control, prioritizing resource allocation for
project developed software-based modules for prevention efforts. The system provides critical
animal identification, registration, health information to farmers, veterinarians, and other
monitoring, traceability, and a monitoring stakeholders, enabling them to respond to
dashboard. The successful pilot phase has outbreaks promptly and efficiently. By
demonstrated the feasibility and effectiveness of minimizing the impact of animal diseases on the
the software system, paving the way for its economy and public health and safeguarding the
nationwide implementation. This achievement food supply chain, the project contributes
not only opens avenues for Pakistan to access significantly to national welfare. PC-I is in the
international markets but also ensures enhanced process of approval to execute it.
management of livestock identification and
movements. The next plan is to deploy the Pakistan's Collaboration with World
system across the country under the auspices of Organization for Animal Health (WOAH) and
the Animal Husbandry Commissioner Office of Trade: Compliance with WOAH standards is
the M/o NFS&R. essential for maintaining sanitary trade between
countries, as mandated under WTO agreements.
The project with the title of National Peste des Member countries, including Pakistan, must
Petits Ruminants (PPR) Eradication Programme, regularly report animal disease data to WOAH to
Phase-I, Risk-Based PPR Control in Sheep and inform trading partners and facilitate trade. To
Goats of Pakistan was initiated in 2020-21 with streamline this process, WOAH manages the
an allocated budget of Rs 1787.71 million by the online World Animal Health Information
National Veterinary Laboratory. It aligns with System (WAHIS), where the office of Animal
international commitments to eradicate the PPR Husbandry Commissioner submits data
disease by 2030. The successful completion of biannually and immediately for Transboundary
this initiative is set to make Pakistan PPR Animal Diseases (TADs), zoonotic diseases and
disease-free and eligible for World Organization emerging/re-emerging animal diseases, crucial
for Animal Health (OIE) Certification. Key for trading partners of regional and international
activities within the project encompass the markets.
procurement and distribution of PPR vaccines,
training of veterinary personnel in sample WOAH is essential in improving veterinary
collection, storage, and diagnosis, and provision infrastructure and capacity-building in Pakistan
of necessary laboratory equipment. 19.85 and has allocated US$ 30,000 for Provincial
million doses of PPR vaccine have been Antimicrobial Use (AMU) workshops and
procured and distributed. Provinces maintain Veterinary Education Establishments seminars.
emergency reserves, and awareness materials are US$ 15,000 has been released in the 1st phase
circulated among farmers to facilitate disease and is currently being utilized. Furthermore,
control efforts. WOAH-sponsored technical experts actively
contribute to legislative efforts, exemplified by
Animal Disease Surveillance and Information their involvement in drafting "The Pakistan
System: Under TCP/PAK/3909, with a total Animal Health, Welfare and Veterinary Public
allocation of US $ 175,724, a comprehensive Health Act." This legislation aims to observe
feasibility study has been conducted, aiming to international standards in disease surveillance,
develop an animal disease surveillance system animal welfare, and veterinary public health.
tailored to the specific needs of Pakistan. The Additionally, WOAH's engagement in
study involved a thorough assessment of the programmes like the WOAH Laboratory
current animal disease reporting systems at Training Programme, Performance of
various levels in the country to identify their Veterinary Services (PVS) evaluations, and

29
Pakistan Economic Survey 2023-24

veterinary service gap analysis highlight its 728.1 thousand by the corporate meat
commitment to improving Pakistan's veterinary subsectors
services, thus enhancing the sector's overall
c) 2.65 million doses of high-yielding dairy
performance.
cattle breeds of Holstein Friesian and Jersey
In addition to the above, the following policy for enhanced milk production and Brahman
measures are taken during July-March FY2024; for improved meat production.
d) To facilitate the private sector, the Animal
a) 244.2 tons of calf milk replacer valued at Quarantine Department has been entrusted
US$ 453.5 thousand by the corporate dairy with integrating the necessary certifications
subsectors with Pakistan Single Window to harmonize
b) 487 tons of cattle feed premix valued at US$ the trade of animals and animal-origin
products.

Box-II: The Role of CPEC in the Agriculture Sector

Under the Agriculture Cooperation, a comprehensive National Action Plan for Agriculture Modernization has
been prepared. Cooperation in capacity building, germplasm resources, agricultural product processing,
agrarian technology extension, fishery science, and technology. Aquaculture aquatic product processing,
establishment of FMD free zones in Pakistan, market information & agricultural trade, and cooperation for
Agricultural Development have been agreed between the two sides.
Numerous protocols have been signed to enhance Pakistan's agricultural exports to China. Protocol for the
export of Dried Chili was signed in July 2023, and Protocols for the export of Dairy Products, Hides of
Donkey, and Heated beef were signed in October 2023. Consensus has also been reached to transfer the
Chinese Juncao Technology to Pakistan for the breeding of Juncao and Juncao mushroom varieties,
production and processing of Jancao forage and promotion of livestock feeding, processing and promotion of
Juncao organic fertilizer, soil & water conservation demonstration and capacity building of researchers &
farmers.
Both sides encourage and promote G2G and B2B cooperation under CPEC to create employment
opportunities and promote the export of agricultural products. Chinese and Pakistani research organizations
and enterprises have joined hands in animal husbandry, crop cultivation, and product processing. The
following initiatives are currently under development:
▪ Corporate Agriculture Farming
▪ Establishment of the Center for Sustainable Control of Plant Pest and Diseases
▪ Juncao Technology Demonstration and Extension Project
▪ Development of FMD Free Zones and local production of FMD vaccines
▪ Mechanization harvesting and post-harvesting processes
▪ Pak-China Modern Agricultural Science & Technology Transferring Center
Source: China Pakistan Economic Corridor Secretariat, M/o PD&SI

2.4 Farm Inputs by 18.7 percent (3.957 million tons). This

offtake seems high due to the extraordinarily low
2.4-1 Fertilizer
offtake during the previous year due to floods.
Overall domestic production of fertilizers during Though gas prices for urea plants increased, the
FY2024 (July-March) increased by 17.3 percent average prices of urea and other nitrogen
to 3.253 million tons over the same period of containing fertilizers were mismatched with
FY2023 (2.773 million tons), while import of increased gas prices and were unjustifiably high.
fertilizer also increased by 23.7 percent (524 Moreover, the government decided to import
thousand tons). Hence, fertilizer availability urea on 23rd October 2023. Imported urea (by
increased by 18.1 percent (3.776 million tons). Trading Corporation of Pakistan) landed
Total offtake of fertilizer nutrients also increased between 20th December 2023 and 31st January

30
 Agriculture

2024. After a series of negotiations with the local 758 thousand tonnes, leaving an inventory of 38
urea industry, a mechanism was agreed upon, thousand tonnes for the upcoming Rabi 2023-24.
and marketing of imported urea started in mid-
February 2024. The total availability of urea during Rabi 2023-
24 was 3,698 thousand tonnes, comprising 77
The total availability of urea during Kharif 2023 thousand tonnes of opening inventory, 220
was 3,397 thousand tonnes, comprising 69 thousand tonnes of imported supplies, and 3,401
thousand tonnes of opening inventory and 3,328 thousand tonnes of domestic production (Table
thousand tonnes of domestic production (Table 2.9). Total offtake was 3,525 thousand tonnes,
2.9). Total offtake was 3,322 thousand tonnes, leaving an inventory of 174 thousand tonnes for
leaving an inventory of 77 thousand tonnes for Kharif 2024. Availability of DAP was 983
Rabi 2023-24. Availability of DAP was 794 thousand tonnes, comprising 38 thousand tonnes
thousand tonnes, comprising 274 thousand of opening inventory, 393 thousand tonnes of
tonnes of opening inventory, 392 thousand local production, and 552 thousand tonnes of
tonnes of local production, and 128 thousand imported supplies. DAP offtake was 874
tonnes of imported supplies. DAP offtake was thousand tonnes, leaving an inventory of 78
thousand tonnes for Kharif 2024.

Table 2.9: Fertilizer Supply Demand Situation 000 Tonnes

Kharif (Apr-Sep) 2023 Rabi (Oct-Mar) 2023-24
Description
Urea DAP Urea DAP
Opening Stock 69 274 77 38
Imported Supplies 0 128 220 552
Domestic Production 3,328 392 3,401 393
Total Availability 3,397 794 3,698 983
Offtake/Demand 3,332 758 3,525 874
Write on/off 1 1.9 0 -30.6
Closing Stock 77 38 174 78
Source: National Fertilizer Development Centre

2.4-2 Seeds ▪ SBRC had accepted applications of 11 seed

companies as Seed Exporters for a grant of
Seed is the major input needful for gaining better
registration certificate, which was later
output from agriculture. Quality seed helps in
approved by the ministry.
successful harvest, improved climate resilience,
better yields, and global recognition for ▪ SBRC accepted applications from 17
enhancing agricultural profitability. processing units for registration, further
strengthening the seed-processing
Achievements of the Seed Sector FY2024 infrastructure.
▪ Seed Business Regulation Committee ▪ A total of 151 (Local:145, Importer:05 &
(SBRC), in its 5th, 6th & 7th meetings, had Exporter: 01) seed companies’ registration
recommended accepting submitted was renewed for five years (2023-2028)
applications of 134 seed companies as local based on satisfactory progress for the last
seed producers were directed to submit three years.
performance agreements and performance
bonds by their five-year seed production for ▪ Registrations of 89 seed companies as local
obtaining registration certificates to do seed seed producers were cancelled, ensuring
business. compliance with regulatory standards.

▪ SBRC had accepted applications of 80 seed ▪ Rigorous sampling and testing protocols
companies as Seed Importers on fulfillment were applied, with 637.5 thousand MT of
of preliminary requirements as laid down in locally produced seeds tested for purity,
amended rules. germination, and seed health.

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Pakistan Economic Survey 2023-24

▪ Imported seed consignments totalling 46.6 (CSTL) obtained an accreditation extension,

thousand MT underwent testing to ensure facilitating seed testing services and
compliance with Seed (Truth in Labeling) enhancing Pakistan's recognition in the
Rules, 1991. global seed market. The CSTL played a
crucial role in ensuring the quality of seed
▪ A comprehensive examination of
lots through rigorous testing protocols and
approximately 193 candidate lines across
accreditation by international standards.
various crops was conducted for
Distinctness, Uniformity, and Stability ▪ Efforts were made to strengthen
(DUS) trials. collaboration with various countries and
international organizations for the
▪ Multiple Variety Evaluation Committee
development of the seed sector.
meetings (VEC) meetings were held to
assess and recommend varieties for ▪ The implementation of a digital technology
cultivation, ensuring diversity and quality in on MIS based seed certification system
agricultural produce. would improve efficiency, transparency, and
accountability in the seed certification
▪ Meetings of the Provincial Seed Councils
process. The MIS-based system facilitated
deliberated on the distribution and
the certification of over 1,300 varieties of
cultivation of approved varieties, fostering
more than 50 crops, providing real-time data
collaboration between provinces for
for decision-making and enhancing
agricultural development.
stakeholder accessibility. Efforts were made
▪ The registration of new Horticultural to digitize seed registration processes,
nurseries and certification of nursery plants improving accessibility and efficiency in
aimed to promote the production and seed business operations.
dissemination of disease-free and high-
The area, seed requirement, and seed availability
quality nursery plants.
during FY2024 (July-March) are given in Table
▪ The Central Seed Testing Laboratory 2.10.
Table 2.10: Area, Seed Requirement and Seed Availability Metric Tonne
Sowing Area Total Seed Seed Availability
Crop*
(000 Hectare) Requirement Public Private Imported Total
Wheat 9,250 1,142,375 65,319 463,778 0 529,097
Cotton 2,767 54,672 0 12,632 0 12,632
Paddy 3,070 45,624 69 22,725 9,175 31,969
Maize 1,331 32,866 0 1,839 20,778 22,617
Pulses 1,213 85,413 0 1,049 0 1,049
Oilseeds 830 4,100 365 6,433 620 7,419
Vegetables 280 8,400 16 1,596 1,394 3,006
Fodders 2,038 61,140 46 21,426 6,481 27,953
Potato 166 415,000 0 0 6,758 6,758
Total 20,944 1,849,591 65,816 531,479 45,207 642,501
10.24%** 82.72%** 7.04%** -
*: Except wheat all seed availability figure are provisional as seed sampling and testing is in process
**: Values of Public, Private and Import are given on the basis of percentage value out of total seed availability.
Source: Federal Seed Certification & Registration Department, M/o NFS&R

2.4-3 Farm Machinery ▪ Electricity/diesel bills are among the most

significant expenses for farmers. An
Farm mechanization is a vital factor in
allocation of Rs 30.0 billion has been made
accelerating growth in the agriculture sector.
to switch 50,000 agricultural tubewells to
The main constraint in increasing agriculture
solar energy.
productivity includes the non-availability of
quality tractors and farm machinery. Under the ▪ Harvesting period is getting shorter due to
FY2024 budget, the following steps were taken climate change. Also, if the farmer has to
to promote agricultural productivity; raise three crops, harvesting the ripe crop as

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soon as possible is essential. This requires requirements. The number of operational

combined harvesters. All duties and taxes tractors in the country is around 692,626,
may be exempted on combined harvesters to resulting in the availability of around 0.9
promote the use of combined harvesters. horsepower (HP) per acre against the required
power of 1.4 HP per acre. During FY2024 (July-
▪ To increase rice production, seeders, Rice
March), total tractor production reached 36,304
Planters, and Dryers are exempted from
compared to 22,626 produced last year, showing
duties and taxes.
an increase of 60 percent due to rapid growth in
The domestic tractor industry has played a agriculture land reclamation after the recent
pivotal role in fulfilling farmers' tractor floods. (Table 2.11).
Table 2.11: Prices, Production, and Sales of Locally Manufactured Tractors FY2024 (July-March)
Tractors Model-(HP) Tractor Price (Rs) Production (Units/ Nos.) Sales (Units/ Nos.)
Al-Ghazi Tractors Limited
NH-480-S (55-HP) 2,194,000 2,457 2,499
NH-480-PP (55-HP) 2,278,000 2,081 2,192
NH-Ghazi (65-HP) 2,555,000 5,363 4,841
NH-640 (75-HP) 3,325,000 2,559 2,316
NH-Dabung (85-HP) 3,430,000 263 256
NH-70-56 (85-HP) 4,575,000 - 02
Total 12,723 12,106
M/s Millat Tractors Limited
MF-235 (50 HP) 2,040,000 15 06
MF-240 (50 HP) 2,190,000 5,653 5,788
MF-260 (60 HP) 2,550,000 162 153
MF-260 SE (60 HP) 2,600,000 3,334 3,380
MF-260 Delux (60 HP) 2,775,000 20 07
MF-360 (60 HP) 2,690,000 66 63
MF-360 4WD (60 HP) 3,795,000 49 21
MF-375 (75 HP) 3,345,000 155 237
MF-375 4WD (75 HP) 4,500,000 19 20
MF-385 (85 HP) 3,465,000 13,472 13,228
MF-385 Delux (85 HP) 3,760,000 99 67
MF-385 4WD (85 HP) 4,585,000 527 536
MF-385 4WD Delux (85 HP) 4,875,000 10 04
Total 23,581 23,510
Grand Total 36,304 35,616
Source: Tractor Manufacturers, Federal Water Management Cell

2.4-4 Irrigation the normal average rainfall of 26.4 mm, showing

an increase of 1.3 percent. However, during the
The monsoon season (July-September) 2023
winter (January-March) 2024, rainfall remained
recorded above-average rainfall,146.4 mm,
above 80.8 mm against the normal average
showing an increase of 3.9 percent against the
rainfall of 74.3 mm, showing an increase of 8.8
normal average rainfall of 140.9 mm. During the
percent. Rainfall recorded during the reference
post-monsoon season (October-December)
period is given in Table 2.12.
2023, rainfall was recorded at 26.8 mm against

Table 2.12: Pakistan’s Rainfall* Recorded During 2023-24 (in Millimetres)

Monsoon Rainfall Post Monsoon Rainfall Winter Rainfall
(Jul-Sep) 2023 (Oct-Dec) 2023 (Jan-Mar) 2024
Normal** 140.9 26.4 74.3
Actual 146.4 26.8 80.8
Shortage (-)/excess (+) +5.5 +0.4 +6.5
% Shortage (-)/excess (+) +3.9 +1.3 +8.8
*: Area Weighted **: Normal/Long Period Average of 1961-2010
Source: Pakistan Meteorological Department

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Pakistan Economic Survey 2023-24

Canal head withdrawals during Kharif 2023 from 29.37 MAF during Rabi 2022-23 showing
increased to 61.85 MAF from 43.27 MAF in an increase of 4 percent. The province-wise
Kharif 2022, showing an increase of 43 percent. details are shown in Table 2.13.
During Rabi 2023-24, it increased to 30.59 MAF
Table 2.13: Canal Head Withdrawals (Below Rim Stations) Million Acre Feet
Kharif Kharif % Change in Rabi Rabi % Change in
Province (Apr-Sep) (Apr-Sep) Kharif 2023 (Oct-Mar) (Oct-Mar) Rabi 2023-24
2022 2023 Over 2022 2022-23 2023-24 Over 2022-23
Punjab 26.14 31.42 20 15.96 16.61 4
Sindh 15.56 28.00 80 12.31 12.41 1
Balochistan 0.80 1.57 96 0.80 0.94 18
Khyber Pakhtunkhwa 0.76 0.86 13 0.32 0.63 101
Total 43.27 61.85 43 29.37 30.59 4
Source: Indus River System Authority

Pakistan faces a shift from water-stressed to India. Approximately 2.66 million acre-feet
water-scarce status due to factors such as (MAF) of water flows from India to Pakistan
population growth, industrial expansion, through these eastern rivers, complemented by
inefficient irrigation, unsustainable groundwater an additional 3.33 MAF of runoff generated
use, inadequate storage, low water productivity, within Pakistan’s catchments. The Kabul River
poor efficiency, and contamination of water contributes 21 MAF to Pakistan’s total surface
resources. This has led to both quantitative and water. According to Indus River System
qualitative water losses. To tackle these Authority (IRSA) facts and figures (Year 2022),
challenges, the water sector’s long-term the Indus River System receives an average
planning acknowledges these issues based on the annual inflow of about 146 to 150 MAF,
National Water Policy. The plan adopts the predominantly sourced from snow and glacial
Integrated Water Resources Management melting. The current water availability at canal
(IWRM) approach, aligning with the policy’s head works is about 97.51 MAF, with estimated
objectives. The connection between water, food, annual losses of around 50 MAF. Pakistan
climate, and energy security becomes more extracts approximately 50 to 52 MAF from
evident in the impending water crisis. The aquifers, surpassing the sustainable limit of safe
comprehensive plan addresses this nexus, guided yield (WAPDA).
by equity, efficiency, affordability, participatory
decision-making, environmental sustainability, Regarding vulnerability to climate change,
and practicability in line with Vision 2025 and Pakistan ranks 5th in the Global Climate Risk
the National Water Policy. Index 2023, based on weather-related events
from 2000-2019. Despite contributing less than
2.4-4(a) Water Sector Issues and Impact of 0.9 percent to total global emissions, the country
Climate Change demonstrated high vulnerability during the 2022
devastating floods, highlighting the urgent
Pakistan experiences winter snowfall primarily
impact of climate change.
in its Northern Areas. Rainfall across the country
varies significantly in quantity, timing, and 2.4-4(b) Key Initiatives
spatial distribution. The mean annual
precipitation ranges from under 100 mm in Water projects achieved remarkable milestones,
portions of the Lower Indus Plain to over 750 setting a precedent for excellence and innovation
mm near the foothills of the Upper Indus Plain. in water resource management. The dedicated
The nation relies on the three western rivers of efforts yielded key accomplishments that have
the Indus (Kabul, Jhelum, and Chenab). addressed critical challenges and paved the way
Meanwhile, the three eastern tributaries – Ravi, for sustainable and resilient water systems. This
Sutlej, and Beas – were allocated exclusively to period of intense activity and progress signifies

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 Agriculture

a commitment to advancing the water Balochistan and KP are being implemented

augmentation goals and contributing to the well- on a fast-track basis.
being of communities through impactful water 2.5 Agricultural Credit
projects. The major achievements of the water
sector are given as follows: To increase the flow of credit to the agriculture
sector, the State Bank of Pakistan (SBP) has
▪ Presentation of the 13th Five-Year Plan
allocated an indicative disbursement target of Rs
(2024-2029) covering the Water Resource
2,250 billion for FY2024, which is 26.7 percent
Sector was initiated through extensive
higher than last year’s disbursement of Rs 1,776
consultation with all stakeholders.
billion. Currently, 47 financial institutions are
▪ Finalization of National Flood Protection providing agriculture loans to the farming
Plan-IV (NFPP-IV) (substantially). community, which include five major
▪ Preparation of a National Master Plan for commercial banks, 13 medium & small sized
Flood Drainage has been initiated. commercial banks, 6 Islamic banks, 2
▪ Sindh Water Policy has been developed and specialized banks and 11 microfinance banks
launched in August 2023. besides 10 Microfinance Institutions/Rural
Support Programmes.
▪ A total of 71 Water Sector Projects costing
Rs 2,089.23 billion are reflected in PSDP During July-March FY2024, the agriculture
2023-24 with an allocation of more than Rs lending financial institutions disbursed Rs
100.35 billion. 1,635.2 billion, which is 72.7 percent of the
▪ Mega projects of national importance, i.e., overall annual target and 33.8 percent higher
the Diamer-Basha Dam and Mohmand Dam than Rs 1,221.9 billion disbursed during the
projects, remained priority projects. same period last year. Further, the outstanding
Continuous efforts are being made to ensure portfolio of agricultural loans increased by
timely completion. Rs105.8 billion, reaching Rs 818.7 billion at the
▪ Work on Kachhi Canal Phase-I with 74,000 end of March 2024, compared to Rs 712.9 billion
acres CCA has been completed at the end of March 2023, witnessing 14.8
substantially. percent growth. In terms of outreach, the number
▪ Progress of Kachhi Canal Phase-I of outstanding borrowers reached 2.70 million at
(Remaining works) having an additional the end of March 2024. The group-wise breakup
30,000 acres CCA is 95.56 percent. of agriculture lending during July-March
FY2024 against the annual indicative targets is
▪ Flood Emergency Rehabilitation and given in Table 2.14.
Reconstruction Projects in Sindh,
Table 2.14: Supply of Agriculture Credit by Institutions Rs billion
1 Target FY2023 (July-March) Target FY2024 (July-March) % Change over
Banks
FY2023 Disbursed Achieved (%) FY2024 Disbursed Achieved (%) the Period
5 Big CBs 966.0 666.7 69.0 1,147.0 870.5 75.9 30.6
ZTBL 124.0 47.1 38.0 115.0 59.4 51.7 26.3
PPCBL 13.0 6.2 47.7 15.0 6.6 44.0 6.5
DPBs (13) 350.0 259.6 74.2 488.2 389.1 79.7 49.9
IBs (6) 103.0 62.0 60.2 167.0 124.1 74.3 100.2
MFBs (11) 230.0 158.7 69.0 280.6 160.1 57.1 0.9
MFIs/RSPs (10) 33.0 21.6 65.4 37.2 25.3 67.9 17.0
Total 1,819.0 1,221.9 67.2 2,250.0 1,635.2 72.7 33.8
Source: State Bank of Pakistan

The sectoral breakup of agriculture financing sector received Rs 876.7 billion (53.6 percent)
during July-March FY2024 shows that out of the while Rs 758.5 billion (46.4 percent) was
total disbursement of Rs 1,635.2 billion, the farm disbursed to the non-farm sector. Further, the

1
CBs: Commercial Banks, ZTBL: Zarai Taraqiati Bank Limited, PPCBL: Punjab Provincial Cooperative Bank Ltd, DPBs: Domestic
Private Banks, IBs: Islamic Banks, MFBs: Microfinance Banks, MFIs/RSPs: Microfinance Institutions/Rural Support Programmes

35
Pakistan Economic Survey 2023-24

data on farm credit by the size of land holdings respectively. Whereas, under the non-farm
reveals that Rs 344.6 billion has been disbursed sector, Rs 187.2 billion has been disbursed to
to ‘subsistence’ farms, which witnessed 47 small farms and Rs 571.3 billion to large farms
percent growth compared to the same period last with 11.4 percent and 34.9 percent growth,
year. Moreover, Rs 123.2 billion has been respectively, mainly due to credit off-take in the
disbursed to ‘economic’ farms and Rs 408.9 Livestock/Dairy & Meat sector. The sector-wise
billion to ‘above-economic’ farms witnessing comparative details of credit disbursements are
growth of 48.3 percent and 32.9 percent, given in Table 2.15.

Table 2.15: Credit Disbursement to Farm & Non-Farm Sectors Rs billion

FY2023 (July-March) FY2024 (July-March) % Growth
Sector
% Share in % Share in over the
(Land Holding/Farm size) Disbursement Disbursement
Total Total Period
A Farm Sector 625.1 51.2 876.7 53.6 40.2
1 Subsistence Holding 234.4 19.2 344.6 21.1 47.0
2 Economic Holding 83.1 6.8 123.2 7.5 48.3
3 Above Eco. Holding 307.7 25.2 408.9 25.0 32.9
B Non-Farm Sector 596.8 48.8 758.5 46.4 27.1
1 Small Farms 170.3 13.9 187.2 11.4 10.0
2 Large Farms 426.6 34.9 571.3 34.9 33.9
Total (A+B) 1,221.9 100.0 1,635.2 100.0 33.8
Source: State Bank of Pakistan

The agriculture financing by sector and purpose due to the Markup Subsidy and Risk Sharing
shows that the farm sector production loans and Scheme for Farm Mechanization (MSRSSFM)
non-farm sector working capital loans witnessed announced under the Kissan Package 2022 of
growth of 31.7 percent and 30.8 percent GoP. However, the Fixed Investment loans
respectively. Moreover, the development loans under the non-farm sector witnessed a decline of
for the farm sector grew by 222.1 percent 7.9 percent. (Table2.16)
compared to the same period last year, primarily
Table 2.16: Credit Disbursements by Sector and Purpose Rs billion
FY2023 (July-March) FY2024 (July-March)
% Growth over
Sector & Purpose % Share in % Share in
Disbursement Disbursement the Period
Total Total
A Farm Sector 625.1 51.2 876.7 53.6 40.2
1 Production Loans 596.9 48.8 785.8 48.1 31.7
2 Development Loans 28.2 2.3 90.8 5.6 222.1
B Non-Farm Sector 596.8 48.8 758.5 46.4 27.1
1 Working Capital 539.2 44.1 705.4 43.1 30.8
2 Fixed Investment 57.7 4.7 53.1 3.2 -7.9
Total (A+B) 1,221.9 100.0 1,635.2 100.0 33.8
Source: State Bank of Pakistan

SBP’s Initiatives for the Promotion of ▪ Implementation of risk mitigation and

Agriculture Financing incentive schemes: Crop Loan Insurance
Scheme (CLIS) & Livestock Insurance
For the promotion of agricultural financing, in
Scheme for Borrowers (LISB), Credit
collaboration with federal and provincial
Guarantee Scheme for Small &
governments, SBP has taken certain initiatives.
Marginalized Farmers (CGSMF),
These include;
▪ Implantation of Electronic Warehouse
▪ Adoption of Agriculture Credit Scoring Receipt Financing (EWRF) uptake strategy.
Model for banks performance,
To facilitate farmers and revive the economic
▪ Introduction of Champion Bank Concept for activities in flood-affected areas, SBP has been
underserved areas, implementing various agriculture financing-

36
 Agriculture

related components of the PM’s Kissan Package, Kissan Package.

2022. These include:
2.6 Forestry
▪ Markup Waiver Scheme (MWS) for
Pakistan has an area of 4.51 million ha (5.1
subsistence farmers against agriculture loans
percent) under forests. By forest type, coniferous
with outstanding balances (including
forests have the most significant proportional
markup) of up to Rs 500,000 per loan that
coverage (37 percent) followed by Scrub Forests
were regular as of June 30, 2022. Under the
(22.2 percent), Littoral and swamp forests
scheme, banks provided mark-up waiver of
(Mangroves) (7.3 percent), Riverine Forest (7.8
Rs 2.96 billion to eligible farmers, where 50
percent) and Irrigated Plantations (6.3 percent).
percent of the waived amount (Rs 1.48
The average annual rate of deforestation has
billion) was borne by GoP.
been assessed as 11,000 ha. The Ministry of
▪ GoP Markup Subsidy Scheme (GMSS) Climate Change & Environmental Coordination
for revival of agriculture/livestock sectors (M/o CC&EC) in collaboration with the
against loans of up to Rs 500,000 to provincial/territorial forestry departments is
subsistence farmers. Under the scheme, Rs implementing measures to enhance forest cover
10.05 billion was disbursed to 43,465 in the country.
borrowers during its term, which ended on
December 31, 2023. M/o CC&EC is implementing Green Pakistan-
Upscaling Programme, Phase-I across the
▪ Interest Free Loans and Risk Sharing country with the overall objective of reviving
Scheme for Landless Farmers forestry and wildlife resources. The total cost is
(IF&RSLF) up to Rs 200,000 in flood- Rs 125.1843 billion. Under the programme, the
affected areas. Under IF&RSLF (merged plantation target of sowing, re-growing and
with CGSMF), Rs 5.8 billion was disbursed distributing 2.12 billion plants has been
to 47,425 borrowers and the scheme ended accomplished at the national level. The
on December 31, 2023. programme is under revision for the next four
▪ Markup Subsidy and Risk Sharing years (2024-2028) with an extended scope of
Scheme for Farm Mechanization including carbon finance mechanism through
(MSRSSFM) for loans upto Rs 30 million facilitation of carbon project development,
for the purchase of tractors, threshers, scientific assessment of natural resources,
combined harvesters, planters etc. As of livelihood creation for local communities and
April 15, 2024, Rs 31.6 billion has been overall biodiversity conservation.
disbursed to 14,240 borrowers. The scheme
has been extended by GoP till June 30, 2024. Climatic conditions, rural poverty, dependence
on natural resources, meagre forest cover, and
▪ PM’s Youth Business and Agriculture deforestation have rendered the country as one
Loan Scheme (PMYB&ALS). The first of the most vulnerable to climate change effects.
phase of PMYB&ALS was completed Besides, these resources are under tremendous
successfully whereby banks achieved their pressure owing to changes in land use and
assigned targets of Rs15 billion for habitat destruction and population pressure for
agriculture financing by the end of June fuel wood and timber.
2023. For FY 2024, the target of Rs 40
billion has been assigned to 16 banks for 2.7 Fisheries
agriculture financing. As of March 31, 2024, Fisheries are a vital component of Pakistan’s
Rs 26.8 billion have been disbursed under economy, providing essential livelihoods for
this scheme. coastal communities. It falls under the umbrella
Besides the above-dedicated schemes for of agriculture plays a crucial role in the economy
agriculture, agro-based SMEs have also been and food security. It serves as a valuable
allowed to avail financing under SBP’s ongoing alternative protein source contributing to a
scheme for SME Modernization, in line with the reduction in the reliance on conventional meats

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Pakistan Economic Survey 2023-24

(mutton, beef, and poultry). Despite its relatively include fresh and frozen fish, shrimp, shellfish,
modest share of 0.31 percent in the GDP, the and processed fish products such as fillets,
fisheries sector’s impact extends far beyond canned fish, and fishmeal. Major export
economic figures, contributing to food security, destinations for Pakistani fishery products
employment, and sustainable resource include the Middle East, European Union,
management. During FY2024 (July-April), total United States, and Southeast Asia. During
fish production reached 720.9 thousand MT, FY2024 (July-March) Pakistan’s major fish
comprising 410.9 thousand MT from marine buyers included China, Thailand, Malaysia, and
fisheries and the rest from inland waters. the Middle East. Sri Lanka and Japan. A total of
206.970 thousand metric tons of fish and fish
Pakistan's export of fish and fisheries products preparations were exported. The export earnings
has shown a steady increase in recent years, for the same period were approximately US$
reflecting the growing demand for seafood in 534.217 million. (Table 2.17)
international markets. The main export items

Table 2.17: Exports of fish and fisheries products FY2024 (July-March)

Countries Quantity (000 MT) Value (US$ million)
EU 1.789 6.957
Non-EU 205.181 527.260
Total 206.970 531.217
Source: Marine Fisheries Department

Concluding Remarks As such, the government’s support will remain

critical in the short-term whereas the self-
Farmers are in the process of sowing Kharif
sustainability of the agriculture sector is to be
crops in the country. The initial input situation
prioritized.
highlights favourable production against last
year. Furthermore, commodity prices are The major bottlenecks in the agriculture sector
expected to remain stable because of improved are access to high-quality inputs such as seeds,
yield, crop production, profitability, and stable fertilizers, and mechanization, along with
international commodity price forecasts in the challenges in finance, efficient market systems,
international market. However, farmers may research and development, and extension
adjust their sowing decisions, given expected services. However, the government is addressing
profits. The targeted subsidies will also be these issues by promoting market-driven
critical to deal with the financial challenges, agricultural production and productivity,
farmers may face during the season. In this enhancing agricultural value addition, and
regard, the incentives offered by the Federal improving access to both domestic and
Government, the recently introduced Kissan international markets. These efforts aim to
Card Scheme by the Government of Punjab and enable agriculture to contribute significantly to
incentives by other provincial governments are the economy’s structural transformation.
favourable for agriculture-led economic growth.

38