Pakistan’s agriculture sector stages a resilient comeback

June 11, 2026 (MLN): Pakistan's agriculture sector charts a resilient and robust growth trajectory of 2.89% in FY26.

Powered by historic livestock output and solid crop recoveries, including bumper harvests in essential crops like wheat and sugarcane, the nation is shaking off past climate vulnerabilities.

With farming securing food supplies and rural livelihoods, this broad-based revival signals a pivotal shift from mere economic survival toward robust, sustainable expansion.

This momentum reflects a highly resilient economy successfully navigating global climate vulnerabilities and global headwinds to secure food supplies, according to Chapter 2 (Agriculture) of the officially released Pakistan Economic Survey FY26.

Agriculture: Crop Resilience and Livestock Expansion

Pakistan’s agriculture sector, the traditional backbone of the economy, employs 33.1% of the workforce and contributes 23.4% to the national GDP.

During FY26, the sector recorded an accelerated growth rate of 2.89% compared to 1.53% the previous year.

This resurgence was fundamentally driven by the crop sub-sector, which rebounded from a 1.01% contraction in FY25 to post a 1.44% growth.

Important crops registered an overall growth of 0.65%.

Sugarcane achieved the highest expansion at 6.2%, yielding 89.45 million tonnes.

Wheat production increased by 4.3% to reach 29.61 million tonnes, heavily supported by the Interim Wheat Policy 2025-26.

Rice output rose by 2.8% to 9.99 million tonnes.

Conversely, cotton production experienced a marginal decline of 0.5% to 7.05 million bales, and maize contracted by 2.7% to 8.79 million tonnes as farmers adjusted their planting preferences based on market returns.

Other crops posted a solid 2.43% growth, buoyed by significant increases in gram, potato, and chillies.

The livestock sub-sector remains the paramount driver of agricultural value addition, accounting for 62.4% of the sector's output and 14.6% of the national GDP.

In FY26, livestock expanded by 3.75%, generating a gross value addition of Rs 6,229 billion.

To fully harness this potential, the government established the National Meat Sector Transformation and Export Council, targeting an increase in meat exports from approximately US$ 500 million to nearly US$ 700 million by 2028.

The poultry segment alone generated Rs 999 billion in gross value addition, supplying 43.3% of the country's total meat production.

Forestry and fishing also demonstrated steady progress, posting growth rates of 2.02% and 1.66%, respectively.

The fisheries sector generated US$ 405.1 million in export revenue during the first nine months of the fiscal year, exporting roughly 200 thousand metric tonnes of seafood.

Agricultural inputs and resource management played a critical role in this year's performance.

Fertilizer nutrient off-take increased by 11.4% to reach 3,795 thousand tonnes during July-March FY26, with nitrogen off-take rising by 14.8% despite a 1.9% dip in phosphate due to elevated global prices. Seed availability for the season was robustly recorded at 767,932 metric tonnes.

Conversely, farm mechanization faced hurdles, as tractor production declined by 8.3% to 21,623 units. On the irrigation front, water availability during Kharif 2025 stood at 60.6 million acre-feet, while Rabi supplies improved to 31.4 million acre-feet.

The government prioritized water security by allocating Rs 97.354 billion in the Public Sector Development Program for 34 water projects, including the Diamer-Basha and Mohmand dams.

To finance these agricultural activities, the State Bank of Pakistan facilitated immense liquidity, with financial institutions disbursing Rs 2,161.6 billion in agricultural credit during the first nine months, marking a 15% increase over the previous year.

Copyright Mettis Link News