Government interventions, a booming livestock sub-sector, and targeted financial credit help the farming industry rebound from devastating floods.
ISLAMABAD: Pakistan’s agriculture sector has staged a strong recovery, recording a 2.89 per cent growth rate in the outgoing fiscal year compared with just 1.53 per cent in the previous year.
Finance Minister Muhammad Aurangzeb officially unveiled the figures on Thursday during the formal launch of the Pakistan Economic Survey 2025–26. Proactive government initiatives and timely financial support measures helped the farming sector demonstrate unexpected resilience in the wake of the severe 2025 floods.
Major Crops Sub-Sector Bounces Back into Positive Growth
The crop sub-sector recorded a growth of 1.44 per cent, representing a major turnaround from the 1.01 per cent contraction witnessed during 2024–25. This recovery was primarily driven by improved production yields across key crops.
Important baseline crops—including cotton, rice, sugarcane, maize, and wheat—registered an overall collective growth of 0.65 per cent. Exceptional performances in sugarcane, wheat, and rice effectively offset notable production declines in cotton and maize.
Performance of Key Crops in FY26
• Sugarcane: Registered the highest sub-sector growth at 6.2 per cent, with production rising from 84.24 to 89.45 million tonnes.
• Wheat: Expanded by 4.3 per cent, with total yields increasing from 28.40 to 29.61 million tonnes.
• Rice: Rose by 2.8 per cent, climbing from 9.72 to 9.99 million tonnes.
Other miscellaneous crops grew by 2.43 per cent despite widespread flood disruptions. This segment was heavily supported by a 31.4 per cent surge in pulses, a 12.6 per cent increase in vegetables, and a 2.8 per cent uptick in fruit production. Conversely, cotton ginning posted a marginal growth of just 0.07 per cent due to weaker raw cotton yields.
Livestock and Institutional Support Drive Food Security
The livestock sub-sector, which holds a massive share in the agricultural economy, expanded by 3.75 per cent compared with 2.95 per cent last year. This strong performance was achieved despite a 4.5 per cent decline in local green fodder availability.
According to the survey, the successful establishment of the National Agricultural Food Security Council (NAFSC) and the National Meat Sector Transformation and Export Council provided a critical policy impetus. These bodies have focused heavily on transforming the livestock value chain and promoting meat exports.
Meanwhile, the forestry and fishing sub-sectors also posted steady growth rates of 2.02 per cent and 1.66 per cent, respectively.
Summary of Agricultural Sector Growth
| Sub-Sector | FY 2024–25 Growth | FY 2025–26 Growth |
| Overall Agriculture | 1.53% | 2.89% |
| Crops Sub-Sector | -1.01% (Contraction) | 1.44% |
| Livestock | 2.95% | 3.75% |
| Forestry | — | 2.02% |
| Fishing | — | 1.66% |
Shift in Fertiliser Offtake and Changing Weather Patterns
Total fertiliser nutrient offtake during the first nine months of the fiscal year (July–March) reached 3,795 thousand tonnes, marking an 11.4 per cent increase over the previous year.
However, high market prices created a divergence in choice for farmers:
• Nitrogen Offtake: Increased significantly by 14.8 per cent (3,035 thousand tonnes).
• Potash Offtake: Surged by 26.2 per cent (48 thousand tonnes).
• Phosphate Offtake: Decreased by 1.9 per cent (712 thousand tonnes) due to elevated pricing pressures.
Volatile Weather and Water Availability
The 2025 monsoon season (July–September) saw heavy rainfall, recording 172.8 mm against the normal average of 140.9 mm—a 22.6 per cent increase that caused the 2025 floods. Following this, the post-monsoon period saw a 19.7 per cent drop in rain, and winter precipitation fell 9.6 per cent below average.
Despite changing weather patterns, irrigation management remained stable. Canal head withdrawals during the Kharif 2025 season stood at 60.56 million acre-feet (MAF). Meanwhile, Rabi season withdrawals rose substantially by 10.7 per cent to hit 31.35 MAF.
Historic Expansion in Agricultural Credit
To maintain this upward trajectory, financial institutions have aggressively expanded their credit facilities for the farming community.
Agricultural loan disbursements are officially projected to hit a record Rs 3,062 billion by the close of the 2026 fiscal year. This massive cash injection represents a 19 per cent increase over the Rs 2,577 billion disbursed in the previous fiscal period, ensuring that local farmers have the liquidity required to sustain growth into the next season.
