Pakistan’s agricultural sector is seeing substantial growth, fueled by a strong increase in mechanization and a productive fertilizer season. In the first quarter of FY2025 (July to September), the country reported a remarkable 115.9% increase in agricultural machinery imports, totaling $29.7 million. This surge highlights the growing trend of mechanized farming as the sector works to improve productivity and yields. With continued investment in technology and mechanization, Pakistan’s farmers are better positioned to meet the rising demands for food security and economic stability.
A key driver of this progress has been the significant offtake of urea and DAP (di-ammonium phosphate) fertilizers during the Kharif season of 2024. Urea offtake reached an impressive 2,746 thousand tonnes, while DAP offtake stood at 642 thousand tonnes. These substantial figures reflect a steady and reliable supply of fertilizers, essential for sustaining crop productivity and supporting farmers as they seek higher yields. The increased fertilizer usage not only signals improved agricultural practices but also supports the wider economic contribution of the sector.
The overall fertilizer production for July to September FY2025 showed a notable growth of 3.7%, reaching 2.45 million tonnes compared to the same period last year. This increase in production has alleviated concerns of shortages and high prices, making essential agricultural inputs more accessible. Enhanced fertilizer production also contributes to better soil quality and higher productivity, which are crucial as Pakistan continues to expand its agricultural output to meet both domestic and export market demands.
Mechanization within the sector is also showing promising gains. Data from the same period indicates that the production of wheat threshers, critical equipment for efficient wheat harvesting, rose by 22.8% compared to last year. This uptrend in mechanization not only improves efficiency but also reduces labor costs and enhances farmers’ capacity to harvest crops in a timely manner. Increased mechanization in wheat production is expected to have a substantial impact on wheat yields, aligning with Pakistan’s goals for greater food security and self-sufficiency in staple crops.
Water availability has also been favorable during the Kharif season, providing essential support for crops. Consistent and adequate water supply is crucial to the sector, as it ensures that crops receive the necessary hydration to reach full yield potential. Favorable water conditions, along with increased access to fertilizers and mechanization, are combining to support a more resilient agricultural base.
These improvements across machinery, fertilizers, and water availability highlight a comprehensive approach to strengthening Pakistan’s agricultural sector. The increasing reliance on technology and the support of crucial resources reflect Pakistan’s commitment to bolstering the agricultural sector—a critical component of the national economy. Given that agriculture contributes approximately 19-20% of Pakistan’s GDP and employs nearly 38% of the labor force, advancements in this sector carry significant implications for the broader economy.
Looking ahead, the agriculture sector’s growth trajectory is expected to continue as government policies and private investments align to boost productivity. The data from the initial months of FY2025 shows positive momentum, and with the current investments in mechanization and resources, the agricultural sector could play an even larger role in driving Pakistan’s economic resilience. The growth in machinery imports and fertilizer production signals a promising trend that, if sustained, may contribute significantly to national food security and reduce the need for imports.
Agricultural modernization in Pakistan is setting the stage for improved economic stability and increased rural income. These advancements provide a strong foundation for continued growth in agriculture, benefiting not only farmers but also the broader economy as a whole. With continued focus on mechanization and resource availability, Pakistan’s agricultural sector is well-positioned to enhance its productivity and support the country’s journey toward greater economic self-reliance.
Source: GoP Finance Division