PM Shehbaz urges swift agricultural reforms as sector growth slumps to 1.1%

Government eyes innovation, financial access, and policy overhaul to revive key crops and counter climate challenges

Prime Minister Shehbaz Sharif on Thursday underscored his government’s focus on transforming Pakistan’s agriculture sector along modern lines, calling for a comprehensive regulatory framework to drive self-reliance and sustainable growth.

Presiding over a high-level meeting on agricultural reforms, the prime minister directed the relevant departments to devise a National Agri-Innovation Plan and establish a coordinated national strategy in collaboration with provinces and sector stakeholders. “The agriculture sector is being developed on modern lines to achieve self-reliance,” the prime minister reiterated.

The renewed focus on agriculture comes amid troubling figures: during the second quarter of FY2024-25, the sector’s growth rate plummeted to 1.10%, a sharp drop from 5.80% recorded during the same period the previous year. This slowdown has been largely attributed to significant declines in the output of major crops, particularly cotton, rice, and maize.

PM Shehbaz emphasized that modern technologies must be central to agriculture sector reforms and called for urgent steps to address the structural weaknesses in the value chain. He urged the development of a sustainable, long-term policy for agro-industrial expansion, one that would also promote forestry and help combat the adverse effects of climate change.

He also instructed authorities to extend agricultural loans on easy terms and to prioritise investment in agricultural research. Stressing the importance of high-quality seeds, the prime minister called for the acceleration of reforms in the certification system and the formulation of an actionable plan to improve seed quality and availability.

The sluggish growth in FY25 is mainly driven by sharp declines in cotton and maize production, among other key crops. Cotton output fell by 30.7%, dropping to 7.084 million bales, compared to 10.22 million bales the previous year. Rice production slid 1.4% to 9.72 million tonnes, while maize output dropped 15.4% to 8.24 million tonnes.

Revised data also shows a 2.3% drop in sugarcane yield, down to 85.62 million tonnes from last year’s 87.64 million tonnes. The area under wheat cultivation shrank by 6.8%, although this contraction had no immediate impact in the first quarter. However, potato production rose 14.2%, and other crops grew modestly by 0.73%.

In a separate consultative meeting held in April, PM Shehbaz reiterated his government’s resolve to revitalise agriculture through innovation and youth engagement. He stated that “the government is determined to transform the sector on modern lines to achieve self-sufficiency,” while highlighting its potential to drive rapid economic progress.

The prime minister expressed dismay over the steep drop in cotton output, noting that Pakistan had now turned into a net cotton importer, whereas regional peers like India and China had seen considerable gains in crop yields.

Highlighting that 65% of Pakistan’s population resides in rural areas, PM Shehbaz stressed the importance of creating opportunities for rural youth in agri-tech and entrepreneurship. He also pointed to the lack of institutional support for local agri-machinery manufacturers and service providers, particularly those catering to small-scale farmers, and called for bringing them into a structured framework.

To advance the reform process, the premier directed the formation of working committees across five critical sub-sectors. He further emphasized the need to increase both domestic and foreign investment in agriculture, strengthen the role of financial institutions, and streamline access to credit for farmers.

Monitoring Desk
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