Agriculture: A Rare Bright Spot in Pakistan's Economy

by Riaz Haq

Jun 13

Pakistan's agriculture sector grew 6.3% in 2023-24, far outpacing the overall economy that grew just 2.38%, according to the Economic Survey of Pakistan 2023-24.  This is good news for about 40% of the country's population working in the agriculture sector. By contrast, India's agriculture growth slowed to 1.2% in recent quarters. Studies have shown that strong growth in agriculture helps reduce poverty in developing nations like India and Pakistan. 

Snapshot of Pakistan's Economy. Source: Economic Survey of Pakistan 2023-24

The agriculture growth in Pakistan was the highest in 19 years. All major crops saw significant increases. Wheat output jumped 11.6% from 28.2 million tons last year to 31.4 million tons this year, the economic survey said. Cotton, severely damaged by floods and rains last year, reached 10.2 million bales compared to 4.9 million bales last year, growing by 108.2%. Rice output also saw a significant increase — up by 34.8% — reaching 9.9 million tons compared to 7.3 million tons. 

Strong crop output is in part the result of higher yields from increased water and fertilizer availability to farmers, according to the economic survey. 

The survey said the water availability during Kharif 2023 increased to 61.9 million acre-feet (MAF) from 43.3 MAF in Kharif 2022 (when the floods hit). For Rabi 2023-24, the water availability was 30.6 MAF, showing an increase of 4.1% over Rabi 2022-23.

Domestic fertilizer production during FY24 (July-March) rose by 17.3% to 3.25 million tons compared to 2.77 million tons in the same period of FY23. Fertilizer imports also increased by 23.7%, reaching 524,000 ton­s. The availability of fertilizer increased by 18.1% to 3.77 million tons. 

Pakistan's Rice Exports Soared 80% in Current Fiscal Year. Source: FT

The value of Pakistan’s rice exports soared to $3.6 billion over the last 11 months, up from $2 billion in July to May 2022-23. Its previous record for was 4.8 million metric tons of rice exports, valued at about $2.5 billion in 2021-22, according to the Financial Times. 

Pakistan is among the world's largest food producing countries. It produces large and growing quantities of cereals, meat, milk, fruits and vegetables. Currently, Pakistan produces about 38 million tons of cereals (mainly wheat, rice and corn), 17 million tons of fruits and vegetables, 70 million tons of sugarcane, 60 million tons of milk and 4.5 million tons of meat.  Total value of the nation's agricultural output exceeds $70 billion.  Improving agriculture inputs and modernizing value chains can help the farm sector become much more productive to serve both domestic and export markets.  

Agriculture is considered a key tool for reducing poverty in developing countries like Pakistan. It employs almost half of the rural workforce, contributes around 20% to the country's GDP, and provides raw materials for agro-based industries, according to a study by Yaping Liu, Asad Amin, Samma Faiz Rasool, and Qamar Uz Zaman.  However, some studies suggest that agriculture may only help mitigate rural poverty in the long term, while other sources say that sustainable agriculture practices can significantly improve agricultural production and reduce poverty.

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  • Riaz Haq

    Pakistan’s current account posts deficit of $681mn in FY24 - Markets - Business Recorder

    https://www.brecorder.com/news/40313476

    Pakistan’s current account posted a deficit of $681 million in FY2023-2024, massively lower by 79% than the deficit of $3.275 billion in the previous fiscal year, revealed data released by the State Bank of Pakistan (SBP) on Friday.

    The CAD amounts to 0.2% of GDP, which is the lowest in the last 13 years, said brokerage house Arif Habib Limited (AHL).

    “This significant decline was driven by a 6% reduction in the trade deficit and an 11% increase in remittances,” it added.

    In FY24, the country’s total export of goods and services amounted to $38.9 billion. Imports clocked in at $63.3 billion during the period, according to SBP data.

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    Pakistan's IT exports up by 24% to $3.2bn in FY24 - Profit by Pakistan Today

    https://profit.pakistantoday.com.pk/2024/07/19/pakistans-it-exports...

    Pakistan's IT exports surge by 24% to reach US$3.2 billion in FY24. In a significant economic development, Pakistan's Information Technology (IT) exports have soared to US$3.2 billion in the fiscal year 2024, marking a robust 24% year-on-year increase from the previous fiscal's US$2.59 billion.

    The latest data, released by the State Bank of Pakistan, underscores the sector’s resilience and growth amidst global economic challenges.

    For June 2024 alone, Pakistan recorded IT exports worth $298 million, up by 33% compared to the same period last year. Despite a month-on-month decline of 10%, June’s exports surpassed the twelve-month average of $262 million, highlighting sustained momentum in the sector.


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    FY24 exports soar 10.54pc to $30.645bn YoY - Business & Finance - Business Recorder

    https://www.brecorder.com/news/40310979

    ISLAMABAD: The country’s exports increased by 10.54 percent ($2.921 billion) to $30.645 billion during the fiscal year 2023-24 compared to $27.724 billion in the corresponding period of 2022-23, says the Pakistan Bureau of Statistics (PBS).

    The monthly trade data released by the Bureau noted that Pakistan’s trade deficit narrowed down by 12.32 per cent in the fiscal year 2023-24 as it stood at $24.089 billion compared to $27.474 billion during the fiscal year 2022-23.

    Imports declined by 0.84 per cent to $54.734 billion during the fiscal year 2023-24 as compared with $55.198 billion in the fiscal year 2022-23.

    The data further noted that the trade deficit widened by 30.39 per cent on a year-on-year basis and stood at $2.390 billion in June 2024 compared to $1.833 billion during the same month of 2023.

    The imports increased by 17.43 per cent on a YoY basis and remained $4.919 billion in June 2024 compared to $4.189 billion in June 2023. The exports increased by 7.34 per cent on a YoY basis and remained $2.529 billion in June 2024 compared to $2.356 billion in June 2023.

    On a MoM basis, the trade deficit widened by 15.13 per cent to $2.390 billion in June 2024, as compared to $2.076 billion in May 2024. Exports recorded a 10.92 per cent negative growth to $2.529 billion in June 2024 when compared with $2.839 billion in May 2024.

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    Remittances in FY24 - BR Research - Business Recorder

    https://www.brecorder.com/news/40313433

    Remittances to Pakistan grew by 10.7 percent year-on-year in FY24 to $30.3 billion. The annual tally is the second highest in the country’s history at $30.3 billion in FY24 after $31.2 billion in FY22. Remittances during June 24, the last month of the fiscal year stood at $3.16 billion, up by 44 percent on a year-on-year basis, but down by 3 percent on a month-on-month basis.

    Jul 20

  • Riaz Haq

    Pakistan's domestic exports rose by 8.90% in FY2023-24

    https://www.samaa.tv/2087319468-pakistan-s-domestic-exports-rose-by...

    In the fiscal year 2023-24, Pakistan's domestic exports saw a notable increase of 8.90%, reflecting a positive trend in the country's trade performance.

    The total exports of goods and services surged by $3.16 billion compared to the previous fiscal year, bringing the total export volume to $38.48 billion.

    Breaking down the figures, the export of goods reached $30.68 billion, while services exports amounted to $7.80 billion. The export of goods experienced an annual increase of $2.95 billion, whereas the services sector saw a more modest rise of $210 million.

    The textile sector remained a significant contributor, with exports totalling $16.65 billion. The agro and food sector also performed well, recording exports of $7.37 billion. Additionally, manufacturing and engineering exports crossed the $4 billion mark, showcasing the sector's growth and potential.

    According to the Ministry of Commerce, other sectors contributed $2.22 billion to the total export volume, highlighting the diverse range of products and services that Pakistan offers to the global market.


    Meanwhile, in the first month of the current financial year, Pakistan witnessed a sharp increase in car imports, while smartphone imports took a downturn, according to the latest report from the Pakistan Bureau of Statistics (PBS).

    Car imports more than doubled in July 2024, with vehicles worth $23.29 million ordered during the month. The value of these imported cars in local currency amounted to approximately Rs6.45 billion.


    In addition to this surge in car imports, car assembly operations also saw a rise, with parts worth $34.2 million being imported in July 2024. The value of these parts in local currency was over Rs9.5 billion, indicating robust demand for both fully built units (CBUs) and completely knocked down (CKD) car kits.

    This trend is notable as Pakistan continues to see increasing demand for automobiles, even amidst economic challenges and inflationary pressures. Industry analysts suggest that a growing middle class and increased consumer financing options may be driving the growth in car imports.

    However, the same cannot be said for smartphone imports. In contrast to the car sector, smartphone imports saw a decline of 5.3% in July 2024 compared to the same period last year. Smartphones worth $64.5 million were imported last month, a sharp contrast to July 2023 when mobile phone imports amounted to $68.1 million.

    Aug 20

  • Riaz Haq

    Pakistan's agriculture exports reach historic $8bln: Jam Kamal


    https://arynews.tv/pakistans-agriculture-exports-reach-historic-8bl...

    Minister for Commerce Jam Kamal Khan Wednesday said Pakistan’s agricultural exports have reached a historic milestone of $8 billion for the first time in history.

    During a virtual meeting with the Sectoral Council for Rice and the Council for Dairy and its Products, the Minister emphasized the importance of their contribution to the national economy.

    He said our goal is to increase export volumes, and all possible measures will be taken in this regard.

    The minister encouraged the council to set its sights on a five billion dollars target for the coming year, indicating the government’s confidence in the sector’s ability to continue its upward trajectory.

    The minister observed Pakistan’s leading position in the European and Gulf markets in the rice sector but emphasized the need to focus on producing pesticide-free products to maintain this edge.

    Earlier it was reported that over 1.126 million metric tons of vegetables valued at $430.055 million were exported during the financial year that ended on June 30, 2024, as compared to the exports of 1.336 million metric tons worth $300 million in the corresponding period of the last year.

    During the period from July-June, 2024, vegetable exports from the country grew by 43.20 per cent as compared to the exports of the same period of the last year, according to the data of the Pakistan Bureau of Statistics.

    on Wednesday