What's Happening?
The State Bank of Pakistan (SBP) has released its performance report for the fiscal year 2024-25, highlighting significant challenges in the agriculture sector. The report reveals that agricultural growth slowed dramatically from 6.4% in 2024 to just
1.5% in 2025, with its contribution to real GDP falling from 1.5% to 0.4%. The decline is attributed to adverse weather conditions, financial constraints, and policy uncertainty. Key crops such as wheat and cotton have seen reduced production and cultivation areas. The report emphasizes the need for policy stability, financial support for farmers, and climate-resilient practices to revive the sector.
Why It's Important?
Agriculture is a vital component of Pakistan's economy, and its decline poses significant risks to food security and economic stability. The reduction in agricultural output can lead to increased food prices and import dependency, affecting the broader economy. The challenges faced by the sector highlight the importance of implementing effective policies and support systems to ensure sustainable agricultural growth. Addressing these issues is crucial for maintaining economic stability and supporting rural livelihoods.
What's Next?
The report calls for urgent policy interventions to stabilize the agriculture sector. This includes providing financial support to farmers, implementing climate-resilient agricultural practices, and ensuring policy consistency. The government and relevant stakeholders must collaborate to address these challenges and secure the sector's future. The success of these efforts will be critical in determining the sector's recovery and its contribution to the national economy.
