Agriculture sector records robust growth

Sees overall increase of 6.25%; emerges as saviour for outgoing fiscal year

LAHORE:

The agriculture sector in Pakistan witnessed robust growth in 2023-24, with an overall increase of 6.25%, contributing significantly to the economy, according to the finance minister. The sector, which contributes 24% to the national GDP, emerged as a saviour for the outgoing fiscal year.

According to the Economic Survey of Pakistan 2022-23, released on Tuesday, the crops sub-sector saw a remarkable growth of 11.03%, a significant improvement compared to the previous year. Within this sub-sector, important crops experienced a substantial surge, growing by 16.82%, reflecting a solid recovery and significant production increase.

Other crops had a modest growth of 0.90%, showing stability. Notable contributions came from fruits (8.40%), vegetables (5.77%), and pulses (1.45%). The cotton ginning sector saw a dramatic 47.23% increase, marking a massive rebound from previous declines and significantly boosting the overall crop sub-sector.

During 2023-24, cotton cultivation increased to 2.4 million hectares from 2.1 million hectares last year, showing a growth of 13.1%. In contrast, its production 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, however, 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 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, the staple crop, saw an increase in cultivation area to 9.6 million hectares from last year’s 9.0 million hectares, showing a growth 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

The livestock sub-sector maintained steady growth, increasing by 3.89%, slightly higher than the previous year, indicating sustained performance in livestock production. Forestry growth decelerated to 3.05% from 16.63% in the previous year, contributing significantly to overall agricultural growth.

Animal husbandry remains a cornerstone of Pakistan’s rural economy, engaging more than eight million rural families and contributing significantly to their livelihoods. Livestock production 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 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 also saw modest growth, increasing by 0.81%, slightly higher than the previous year’s growth, indicating ongoing stability in the sector. Water availability during Kharif 2023 increased to 61.9 Million Acre Feet (MAF) from 43.3 MAF during Kharif 2022, meeting the requirements of Kharif crops. For Rabi 2023-24, water availability was recorded at 30.6 MAF, a 4.1% increase over the same season last year