Pakistan’s agriculture sector is navigating a year of uneven crop outcomes and rising input adoption, according to details emerging from the Federal Committee on Agriculture (FCA) meeting held on 23 October 2025. Despite facing climate-driven disruptions, including recent flooding, the sector has shown resilience in some key areas while recording notable declines in others.
The FCA’s production estimates for the 2025-26 cycle indicate that sugarcane remains a bright spot. Output for the crop is projected to rise by 0.6 percent, reaching 84.74 million tonnes compared to 84.24 million tonnes last year. This improvement comes despite adverse weather events, reinforcing sugarcane’s position as a stable contributor within Pakistan’s agricultural landscape.
However, not all major crops reported growth. Cotton production, which plays a central role in the country’s textile-driven export economy, is expected to drop by 3.3 percent to 6.85 million bales from last year’s 7.08 million bales. The decline highlights ongoing challenges in pest management, yield quality, and climate variability that continue to pressure growers.
Rice output has also softened. The FCA noted a 3.2 percent contraction to 9.41 million tonnes from 9.72 million tonnes last year, reflecting reduced yields and regional stress in some rice-growing belts. Maize production experienced an even steeper reduction, falling 6.7 percent to 8.43 million tonnes from 9.03 million tonnes. These back-to-back decreases underscore the need for improved crop planning, technology-driven farming practices, and targeted support for growers handling sensitive commodities.
Still, the sector recorded pockets of growth in secondary crops. Mung production surged by 14.9 percent, reaching 150.8 thousand tonnes compared to last year’s levels. Similarly, chillies production saw a slight improvement of 0.5 percent, rising to 114.4 thousand tonnes. These increases reflect better input availability, improved seed quality, and greater interest in diversified crop cultivation.
Looking ahead to the Rabi season, the FCA has set an ambitious wheat production target of 29.68 million tonnes, to be harvested from an estimated area of 9.65 million hectares. The committee noted that the input environment remains satisfactory, giving policymakers confidence in reaching the target. Wheat, being Pakistan’s primary staple crop, remains critical for food security and price stability across the country.
Beyond crop performance, the meeting highlighted significant growth in financial and technological uptake within the agriculture sector. During Jul–Oct FY2026, agricultural credit disbursement increased by 18.6 percent, reaching Rs. 845.3 billion compared to Rs. 712.8 billion in the same period last year. This surge reflects stronger engagement between farmers and financial institutions, aided by digital banking tools and easier credit access.
At the same time, the import of agricultural machinery and implements rose by 23.5 percent to $49.3 million during the period, up from $39.9 million last year. This increase signals greater mechanization and a shift toward modern farming technologies as growers look for ways to improve efficiency, reduce labour dependence, and enhance crop resilience.
The mixed performance across crops, combined with rising credit utilisation and machinery adoption, paints a picture of a sector in transition. While underlying challenges persist, technology-driven inputs and improved financing channels are playing a growing role in shaping Pakistan’s agricultural future.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.