According to a news report by Express Tribune, Former Governor of the State Bank of Pakistan, Salim Raza, has stated that Pakistan’s agriculture sector has the potential to overcome the country’s current account deficit and balance-of-payment crisis within six years.
According to Raza, the agriculture sector’s sustainable growth rate directly impacts the GDP’s growth rate, stressing that without 6% growth in agriculture, there is no way Pakistan’s GDP can sustain a 6% per annum growth rate.
The agriculture sector’s current performance has contributed to a trade deficit of $5.5 billion in food and cotton imports in FY22, further widening the current account deficit to $17.4 billion in the same year.
To address this issue, the Pakistan Agricultural Coalition (PAC) launched a study report that highlights practical solutions to boost the sector’s crop yields, producing surplus crops for export. The PAC is made up of agriculture stakeholders and businesses, including banks, fertilizer manufacturers, and insurance companies.
Raza suggested that public banks in Pakistan, including the National Bank of Pakistan, Bank of Punjab, Sindh Bank, and Khyber Bank, could devote 50% of their lending to agriculture financing. This would give farmers access to financing for agricultural inputs, including seeds, fertilizers, pesticides, storage and warehouses, machinery, and extension services.
Raza pointed out that China, India, and Brazil have public banks dedicated to agriculture financing, giving them an advantage over Pakistan’s predominantly privately owned system.
To read the full article visit www.tribune.com.pk
If these measures are implemented effectively, Pakistan’s agricultural sector can indeed become a major contributor to the country’s economy and help reduce the CAD within the next six years.
even this year after devastating floods in 2022 we will.have a very
small cad and If the fdis come thru before June 2023 we will have a surplus cad but from fy24 we will posting cad surplus in region of usd20 to usd30 billion why do you all including sbp keep saying pakistan has a Cad problem it does not after the pdm govt has taken radical measures to reduce the usd component in the import bill eg
using thar coal and Afghanistan coal (,rs payment)and reduce import of coal substantially all we hv in Pakistan is economic myths after this imf Staff agreement pakistan needs to get put of this death wish called rhe 2018 imf agreement signed by hafeez pasha