In 2025, Pakistan’s agriculture sector is influenced by a combination of drivers and restraints rooted in the developments of 2024. Here’s an analysis based on recent data and events
Drivers
1. Government Initiatives and Budget Allocations.
The 2023-24 federal budget increased the agriculture credit limit from Rs. 1,800 billion to Rs. 2,250 billion, aiming to boost agricultural productivity. Rs. 30 billion project was launched to solarize 50,000 agricultural tubewells, reducing energy costs for farmers.
All duties and taxes on imported seeds, combined harvesters, dryers, and rice planters were withdrawn to modernize farming practices. Rs. 6 billion subsidy on imported urea was introduced to ensure affordable fertilizers for farmers.
2. Climate Adaptation Efforts.
Recognizing the adverse effects of climate change, Pakistan has initiated programs to enhance climate resilience in agriculture, including investments in water management and crop diversification.
3. Technological Advancements:
The removal of duties on the import of machinery, equipment, and inputs for solar panels aims to promote sustainable energy use in agriculture.
Restraints:
1. Climate Change Impacts:
In 2024, Pakistan faced a 35% reduction in citrus production due to climate change, leading to an orange shortage and affecting exports.
The 2022 floods, exacerbated by increased precipitation and glacier melting, destroyed around 50% of the country’s crops, highlighting vulnerabilities to extreme weather events.
2. Market Competitiveness:
Pakistan’s sesame seed industry experienced a 53% drop in exports to China in 2024 due to increased competition from countries like Brazil and Niger, affecting farmers’ incomes.
3. Environmental Challenges:
Coastal regions, such as Gwadar, are facing severe challenges from climate change, including devastating floods and eroded beaches, impacting local agriculture and fisheries.
4. Air Pollution:
Major cities like Lahore experience severe air pollution, especially during November, due to factors like crop burning. This not only affects human health but also has implications for agricultural practices and productivity.
Conclusion
While government initiatives and technological advancements provide a positive outlook for Pakistan’s agriculture sector in 2025, challenges such as climate change, market competitiveness, environmental degradation, and air pollution present significant restraints. Addressing these issues requires integrated policies focusing on sustainability, climate resilience, and market diversification to ensure the sector’s growth and stability.