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 from 6.4% in 2024 to just 1.5% in 2025,
with its contribution to GDP dropping from 1.5% to 0.4%. The decline is attributed to adverse weather conditions, financial constraints, and policy uncertainty. The report emphasizes the need for policy stability, financial support, and climate-resilient practices to revive the sector.
Why It's Important?
The decline in agricultural growth poses a threat to food security and economic stability in Pakistan. Agriculture is a critical sector for the country's economy, and its slowdown could have far-reaching implications for rural livelihoods and national GDP. The report's call for policy stability and financial support highlights the urgent need for government intervention to address these challenges. Implementing climate-resilient practices is essential to mitigate the impact of adverse weather conditions and ensure sustainable agricultural production.
