By Azeem Ahmed Khan
ISLAMABAD, Oct 27 (Wealth Pakistan) – Pakistan’s agriculture sector, which suffered massive losses of over Rs430 billion due to floods, is now showing early signs of recovery. The improvement comes as higher credit disbursement, better input availability, and rural support measures boost farming activity across the country.
Early indicators of resilience
According to the Finance Division’s Monthly Economic Update & Outlook (October 2025), the floods damaged major crops such as rice, cotton, sugarcane, maize, fodder, and vegetables. Despite this destruction, data from July to September 2025 show that the sector is recovering faster than expected.
During July–August FY2026, agricultural credit disbursement rose by 19.5 percent to Rs404.2 billion, compared to Rs338.2 billion in the same period last year. This reflects improved lending conditions and the continuation of special financing schemes to help farmers restore productivity.
Surge in input use and investment
Farm mechanization is gaining traction again. Imports of agricultural machinery increased by 31.3 percent, reaching $39.3 million compared to $29.9 million last year. Fertilizer usage also strengthened, indicating that farmers are preparing larger cultivation areas.
During Kharif 2025 (April–September), urea offtake reached 3.1 million tonnes, marking a 13.1 percent rise over Kharif 2024. Similarly, DAP offtake rose by 1.2 percent to 650,000 tonnes. These numbers highlight confidence among farmers and improved access to inputs.
Government support accelerates recovery
The report noted that recovery efforts are well underway, supported by targeted government programs for small and medium farmers. The federal and provincial administrations have improved the supply of quality seeds, fertilizers, and rural credit. Restoration of rural infrastructure—such as irrigation channels and farm-to-market roads—has also been prioritized.
Economists say the rebound demonstrates the sector’s strong foundation. “Although the losses were huge, the rapid rise in credit and input use shows that agriculture remains Pakistan’s economic backbone,” one analyst told Wealth Pakistan. “With continued support, the sector could recover fully within two crop cycles.”
Impact on food security and economy
The Finance Division stressed that agricultural resilience is essential for food security and price stability. “The sector’s revival will also strengthen services and manufacturing industries, given its deep backward and forward linkages,” it said.
Satellite-based assessments show improved vegetation cover in several flood-hit regions, confirming that crop restoration is progressing. The rise in urea sales and machinery imports further reflects farmer optimism.
Path to long-term resilience
Experts emphasize the need for climate-resilient practices, flood management systems, and crop insurance to protect small farmers from future shocks. They recommend that authorities enhance investment in drainage infrastructure and introduce financial safety nets.
The Finance Division projects that agriculture will contribute positively to GDP growth in FY2026, provided favorable weather and stable input prices continue. “Despite the flood impact, the sector is expected to regain momentum, supported by credit expansion, mechanization, and input facilitation,” the report concluded.