Abdul Ghani

Agriculture remained a key driver of Pakistan’s economy in FY2025, though risks from floods continue to threaten output, according to the Ministry of Finance’s Monthly Economic Update and Outlook for August 2025, exclusively available with Wealth Pakistan.

Agricultural credit disbursement rose 16.3% in FY2025 to Rs2.58 trillion. Imports of farm machinery increased 123.9% in July 2025, reaching $14.4 million. Fertilizer consumption showed mixed trends: urea offtake increased 2% to 1.86 million tonnes, while DAP use fell slightly by 0.7%.

The ministry said government policies focus on ensuring the timely availability of seeds, fertilizers, and credit to farmers. However, heavy rains and floods could undermine growth in the sector and strain food supplies.

Speaking to Wealth Pakistan, agricultural economist Professor Anwar Shah highlighted that while the outlook for agriculture showed signs of improvement due to favorable weather conditions and better crop yields, the looming risks from potential floods continued to pose a significant threat.

He stressed the importance of enhanced flood management and infrastructure to mitigate these risks, emphasizing that despite the positive outlook, the agricultural sector remained highly vulnerable to climate-induced events.

Credit: INP-WealthPk