Pakistan’s agriculture sector is showing renewed signs of vitality as the Rabi 2024-25 season progresses, driven largely by a combination of government support programs and a growing focus on technological modernization. The federal government’s sustained efforts to enhance crop yields, improve farmer access to finance, and promote mechanization are beginning to reflect in key agricultural indicators.
The wheat production target for the Rabi season 2024-25 has been set at an ambitious 27.9 million tonnes — a goal that seems attainable considering the range of supportive measures deployed. The government’s initiatives include generous input subsidies, the distribution of high-yielding seed varieties, and the provision of interest-free loans to farmers under the Kissan Card scheme. These steps are aimed at reducing the cost of production and increasing farm productivity, particularly for smallholder farmers.
A notable impact of these efforts is visible in the credit segment. During the period of July to January in FY2025, agricultural credit disbursement rose by a substantial 16.0 percent year-on-year, reaching Rs. 1,483.6 billion, up from Rs. 1,279.4 billion during the same period last year. This increase underscores a greater financial inclusion push and improved accessibility to structured credit lines, empowering farmers to invest more confidently in inputs and machinery.
One of the more remarkable trends has been the significant surge in agricultural mechanization. The import of agricultural machinery and implements saw a sharp 45.7 percent increase, rising to $77.2 million during the period of July to February FY2025. This shift indicates that farmers are increasingly looking to modern tools and equipment to improve efficiency, reduce labor costs, and manage large-scale operations — a key step forward for Pakistan’s traditionally low-mechanized farming sector.
However, fertilizer usage — a crucial input in crop production — showed a mixed pattern during the Rabi season from October to February. Di-Ammonium Phosphate (DAP) offtake increased by 3.8 percent, reaching 798 thousand tonnes, signaling a preference for quality fertilizers among farmers looking to maximize yield. On the other hand, Urea offtake stood at 2,796 thousand tonnes, registering a slight decline of 2.0 percent compared to the same period last year. This fluctuation may be attributed to pricing dynamics, seasonal application patterns, or inventory stockpiles carried over from the previous season.
The combined trends indicate a gradual but meaningful transformation within Pakistan’s agriculture ecosystem. While productivity improvements and financial access are critical for immediate seasonal outcomes, the broader shift towards mechanization suggests a longer-term pivot toward modernization in farming practices. These developments are particularly relevant as Pakistan aims to bolster food security, manage climate risks, and reduce the structural inefficiencies that have long plagued the sector.
With the government continuing to prioritize agricultural reforms and technological integration, the outlook for the sector remains cautiously optimistic. The Rabi 2024-25 season could serve as a pivotal moment, where traditional farming begins to align more closely with data-driven and tech-enabled agricultural practices — a shift necessary to future-proof the sector amid growing economic and environmental challenges.