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Business Recorder
a day ago
- Business
- Business Recorder
‘Lowest in 9 years': Pakistan agriculture sector projected to grow only 0.56% in FY25
Pakistan's agriculture sector will grow marginally by 0.56% in the financial year 2024-25, as per the provisional data unveiled in the Economic Survey for FY25, against 6.40% growth recorded in the sector in 2023-24. The growth in the FY25 would be the 'lowest in 9 years', Topline Research said in a statement. 'Agri sector is expected to post lowest growth of 0.56% in 9 years (FY16: +0.41%) vs. 5 years avg. growth of 3.38%,' it said. The lower growth was attributed to decline in important crops production and cotton ginning by 13.5% and 19.0%, respectively. While other crops posted growth of 4.78%, livestock, forestry and fishing are expected to post growths of 4.72%, 3.03% and 1.2% respectively. On the other hand, important crops and cotton are expected to post declines of 13.49% and 19.03%, respectively. 'The crop sub-sector witnessed negative growth as a result of weather-related adverse challenges,' read the Economic Survey. 'Overall, the agriculture sector in FY25 showed a combination of resilience and challenges across its sub-sectors. The growth trend emphasizes the sector's enduring importance, while also highlighting the urgent need for modernisation, climate adaptation, knowledge enhancement, and productivity improvements to sustain its contribution to economic growth and social well-being.' In the Kharif 2024 season, water availability was 60.5 million acrefeet (MAF), lower than average system usage and Kharif 2023. For Rabi 2024-25 water availability remained at 29.4 MAF. The Rabi season observed reduced rainfall, while the Kharif season saw above-average rainfall, according to the survey. Agriculture in South Asia is shaped by a shared agro-climatic context, but countries vary in crop priorities due to policy choices, market demands and natural resource endowments. The Economic Survey said the country's cotton ginning sector showed volatility and cyclical patterns in the last six years. In FY 2025, the sector witnessed a contraction of 19.03% over exceptional growth of 47.23% the previous year. 'This decline reflects underlying structural challenges, adverse weather conditions and pest outbreaks.' To address challenges in the sector, the survey mentioned that the government is pursuing a 'multi-pronged approach focused on improving irrigation efficiency, advancing seed sector reforms, scaling up digital agriculture initiatives, and strengthening R&D and extension services'. 'These measures are essential not only for short-term stability but also for fostering a resilient, self-sustaining agriculture sector capable of driving inclusive economic growth and rural transformation,' the Economic Survey said. 'Agriculture in South Asia is shaped by a shared agro-climatic context, but countries vary in crop priorities due to policy choices, market demands and natural resource endowments.' Last week, Pakistan Kissan Ittehad Council (PKIC) President Khalid Mehmood said the agriculture sector witnessed a dramatic slowdown in the FY25, as he claimed that the farmers collectively suffered losses of around Rs2.2 trillion in wheat alone Khokhar stated that since May 2024, farmers have collectively suffered losses of around Rs2,200 billion in wheat alone — equivalent to 23.15% of the crop sector's contribution to gross domestic product (GDP) for the fiscal year 2023–24. The resulting financial strain had weakened farmers' purchasing power and affected the productivity of other crops as well, he said. PKIC has also warned the government against imposing general sales tax (GST) on agricultural inputs in the upcoming budget, stating that such a move would deal a final blow to the already struggling agricultural sector and further damage the national economy.
Business Recorder
6 days ago
- Business
- Business Recorder
Agri sector witnesses dramatic slowdown: PKIC
ISLAMABAD: The country's agriculture sector has witnessed a dramatic slowdown, with growth dropping to 0.56 percent from 6.25 percent since July 2024, Pakistan Kissan Ittehad Council (PKIC) President Khalid Mehmood Khokhar said on Wednesday. Addressing at a press conference, he said that the decline in major crop yields has severely impacted both the economy and the livelihoods of farmers. He said that cotton production has dropped to 5.55 million bales — 50 percent below the government's target and 34 percent less than last year. Cotton import bill is projected to surge to $1.9 billion, up from $448 million the previous year, he said. Khokar said that the country's wheat production has also suffered, declining by 8.91 percent to 28.98 million tons from last year's 31.81 million tons. Maize production fell by 15.4 percent to 8.24 million tons, compared to 9.74 million tons in the previous year, he said. Khokhar stated that since May 2024, farmers have collectively suffered losses of around Rs2,200 billion in wheat alone — equivalent to 23.15 percent of the crop sector's contribution to GDP for the fiscal year 2023–24. The resulting financial strain has weakened farmers' purchasing power and affected the productivity of other crops as well, he said. Copyright Business Recorder, 2025
Express Tribune
02-03-2025
- Business
- Express Tribune
Opportunities from ties with Kuwait
To facilitate cooperation, Pakistan and Kuwait should establish a dedicated entity similar to PKIC. A proposed Pak-Kuwait Food and Agriculture Co could attract investment in agricultural development and boost Pakistan's food exports . photo: file Listen to article Pakistan and Kuwait share a longstanding and cordial relationship that has strengthened over time. Both countries have consistently demonstrated commitment to each other's development and prosperity. Their friendship has stood the test of time, proving their sincerity on multiple occasions. During Iraq's invasion of Kuwait, the Pakistani community stood firmly with their Kuwaiti counterparts, refusing to leave the country. More recently, during the Covid-19 pandemic, Pakistan facilitated the supply of essential food items, such as meat, amid global disruptions. Kuwait, in turn, has repeatedly extended its support to Pakistan during times of crisis. In 2005, the Kuwaiti government provided $100 million in aid for earthquake-affected areas, particularly in Kashmir. Notably, Kuwait allowed Pakistan to allocate the funds according to its needs and priorities. Similarly, in 2010, Kuwait lifted a ban on public donations to support Pakistan's flood victims, further solidifying its role as a trusted partner. These instances highlight Kuwait's special relationship with Pakistan. The leadership of Kuwait remains keen on strengthening bilateral ties, especially in economic, trade, and defence cooperation. In this regard, Kuwait appointed Nassar Abdulrahman J Almutairi as its Ambassador to Pakistan. A strong advocate for Pakistan, he has made sincere and effective efforts to enhance economic relations and attract investment. His commitment reflects Kuwait's broader vision to deepen its engagement with Pakistan. A closer look at economic and investment ties between Pakistan and Kuwait reveals a series of success stories that have significantly contributed to both countries' growth. Pakistan and Kuwait established Pakistan-Kuwait Investment Company (PKIC) in 1979 as a development financial institution. Initially launched with 62 million Pakistani rupees, PKIC has since expanded to Rs16 billion, with a total equity of Rs49.94 billion. Over the years, it has grown to hold assets worth Rs20 billion. PKIC has successfully invested in several key projects, including Meezan Bank, Al-Meezan Investment Management Limited, and the National Clearing Company of Pakistan Limited. These investments underscore Kuwait's commitment to Pakistan's economic growth. Another key player in Pakistan's economic landscape is EnerTech Holding Co, a subsidiary of the Kuwait Investment Authority. Focused on energy, clean technology, recycling, and water management, EnerTech has invested $190 million in the Nabisar-Vagihar water supply project in Thar, Sindh. The Kuwait Foreign Petroleum Exploration Company (Kufpec) has also maintained a strong presence in Pakistan for years. A subsidiary of Kuwait Petroleum Corporation, Kufpec has invested nearly $1 billion in Pakistan's energy sector. It holds stakes in major gas fields, including Qadirpur (13.25%), Bhit/Badhra (34%), Kadanwari (15.79%), and Zamzama (9.375%). It also operates the Makhad Block with an 82.5% working interest. Currently, Kufpec is focusing on expanding its investment to support Pakistan's oil and gas exploration efforts. The Kuwait Fund for Arab Economic Development has been another major contributor, providing $428 million in financing for Pakistan's social sector, water conservation, and energy projects since 1977. Kuwait is also home to a significant Pakistani expatriate community. Nearly 100,000 Pakistanis reside in Kuwait, with 70% working as unskilled labourers. Remittances from Kuwait to Pakistan amount to approximately $1 billion annually, reflecting the economic contribution of Pakistanis working in the Gulf state. During the Covid-19 pandemic, both countries agreed to enhance labour cooperation, with Pakistan set to send 5,000 doctors and medical staff to Kuwait. This move is expected to further increase remittance inflows in the coming years. Building on these successes, Pakistan and Kuwait have decided to expand and diversify their economic and investment partnership. Kuwait has proposed a $10 billion investment plan, focusing on key sectors such as water reservoirs, mining, mangrove forest expansion, information technology, and food security. This initiative aligns with Pakistan's priority areas, particularly in agriculture, where the country seeks greater investment. Food and agriculture have emerged as critical areas of cooperation between Pakistan and Kuwait. Kuwait, a major food importer, sources over 85% of its food from global markets. Meeting its demand for halal meat involves importing live animals from countries like New Zealand and Brazil, which requires specialised animal hospitals on ships. In this context, Pakistan offers an ideal alternative. By importing processed meat from Pakistan instead of live animals, Kuwait can reduce costs and logistical challenges while ensuring halal compliance. To facilitate this cooperation, Pakistan and Kuwait should establish a dedicated entity similar to PKIC. A proposed Pak-Kuwait Food and Agriculture Company could attract investment in agricultural development and boost Pakistan's food exports. This would help narrow the trade gap between the two countries while providing Kuwait with a reliable, halal-certified, and cost-effective food source. Beyond trade and investment, defence cooperation remains a key aspect of Pakistan-Kuwait relations. Pakistan's military has long enjoyed the trust of the Kuwaiti leadership, particularly for its support during the Iraqi invasion. Both countries have vast opportunities for collaboration in defence training and capacity building. Recently, they signed agreements to strengthen military cooperation, with Pakistan's top military leadership visiting Kuwait to reinforce bilateral ties. Pakistan and Kuwait have built a mutually beneficial partnership, and there remains significant potential for further strengthening this relationship. With smart and strategic policies, Pakistan can attract greater Kuwaiti investment, helping to revive its economy. At the same time, Pakistan can provide Kuwait with quality food exports, skilled human capital, and expertise in various sectors. Thus, it is and will be a win-win cooperation. THE WRITER IS A POLITICAL ECONOMIST AND A VISITING RESEARCH FELLOW AT HEBEI UNIVERSITY, CHINA
