Agriculture sector share rises to 23.54% of GDP in FY25

pakistan agriculture

Islamabad, June 9, 2025 – The Economic Survey of Pakistan 2024-25 has reported that the agriculture sector contributed 23.54% to the country’s Gross Domestic Product (GDP), reflecting its continued structural significance.

Although the sector registered a modest growth rate of 0.56% during FY 2025, it remained a cornerstone of Pakistan’s economic resilience.

The agriculture sector remains essential for ensuring food security, sustaining rural livelihoods, and fostering economic stability. Employing over 37% of the national labor force, the sector’s share in GDP reinforces its enduring role in the broader economic framework. Despite facing multiple challenges, the sector exhibited notable resilience, particularly in livestock and certain high-yield vegetables.

Livestock emerged as the leading sub-sector, growing by 4.72% and contributing 14.97% to the GDP. It accounted for over 63% of the value-added in agriculture, thanks to higher production of milk, meat, and poultry. The poultry sector also registered impressive growth, with meat production increasing by 9.4% and egg output reaching 26.7 billion, contributing significantly to food availability and rural employment.

However, the crops sub-sector recorded a sharp contraction of 6.82%, mainly due to a 13.49% decline in major crops and a 19.03% drop in cotton ginning. Adverse weather conditions, reduced sowing areas, and delayed planting cycles were key factors behind the downturn. Wheat production declined by 8.9%, while rice saw a slight 1.38% fall in output despite an expansion in cultivated area. Other key crops such as cotton (-30.7%), sugarcane (-3.88%), and maize (-15.4%) also witnessed negative trends.

On the other hand, vegetables like onion and potato posted robust growth of 15.9% and 11.5%, respectively, highlighting the potential for diversification within the agriculture sector.

In terms of inputs and modernization, agricultural credit disbursement rose to Rs 1,880.4 billion, up by 15% compared to the previous year. Fertilizer availability remained stable, and seed certification coverage reached 34.3% of national needs. Initiatives under the Special Investment Facilitation Council (SIFC) also promoted mechanization and climate-smart farming.

In conclusion, FY 2025 presented a complex but resilient picture of the agriculture sector. With targeted investments, innovation, and policy support, the sector is poised to enhance its contribution to economic growth, rural development, and national food security.