The government of Pakistan has set an ambitious wheat production target of 27.92 million tonnes for the Rabi 2024-25 season, covering 9.262 million hectares. This initiative is part of a broader strategy to achieve self-sufficiency in the agriculture sector by ensuring the timely availability of critical inputs such as quality seeds, fertilizers, mechanization support, and agricultural credit.
Agriculture credit disbursement during the first five months of FY2025 (July to November) reached Rs. 925.7 billion, marking an 8.5% increase compared to Rs. 853.0 billion during the same period last year. This upward trend underscores the government’s commitment to enhancing financial accessibility for farmers, aligning with the ambitious annual credit target of Rs. 2,572.3 billion.
Mechanization is also gaining momentum, with agricultural machinery imports rising by an impressive 42.3% to $45.3 million during the period. This reflects a growing emphasis on improving efficiency and productivity in the agriculture sector, a key driver of Pakistan’s economy.
Fertilizer usage trends for the Rabi season (October-November 2024) showcased mixed results. Urea offtake declined by 5.4% compared to the same period in 2023, amounting to 1,012 thousand tonnes. In contrast, the offtake of Diammonium Phosphate (DAP) saw a substantial increase of 27.4%, reaching 559 thousand tonnes.
The surge in DAP offtake can be attributed to initiatives like the Punjab Government’s Kissan Card Program, which provides interest-free loans to small farmers for purchasing essential agricultural inputs, including seeds and fertilizers. This program has played a pivotal role in incentivizing the adoption of high-quality inputs, fostering better crop yields.
The government’s concerted efforts to boost agricultural productivity also align with its broader economic reform agenda, which emphasizes food security and sustainability. By prioritizing mechanization, enhancing access to credit, and ensuring the availability of quality inputs, policymakers aim to reduce dependence on imports and strengthen the agriculture sector’s contribution to GDP.
Despite these positive developments, challenges remain, such as the decline in urea usage and the need for more widespread adoption of modern farming techniques. However, the continued focus on supportive policies and financial incentives signals a proactive approach to addressing these issues.
As Pakistan navigates the complexities of achieving agricultural self-sufficiency, the progress seen in credit disbursement, mechanization, and fertilizer usage highlights the sector’s potential for transformation. With sustained efforts, the agriculture sector is poised to play a critical role in the country’s economic growth and stability in the years to come.