Chapter 2

Agriculture

Sustainable growth of the agriculture sector stands vital for food security and rural
development in Pakistan. It is a major contributor to the employment and foreign
exchange earnings. In addition to that it provides industrial raw material, hence growth
in this sector has multiple linkages with the overall economy. It contributes 22.7 percent
to the GDP and provides employment to around 37.4 percent of the labour force,
manager of rural landscape and environmental shield in protecting and upgrading the
climate-resilient production and ecosystem. The improvement in agriculture production
systems will increase farm income, reduce consumer prices and enhance diverse food
supplies besides generating an exportable surplus. During the post COVID-19 period, the
steep rise in the price of various commodities has further enhanced the importance of
this sector, especially for the countries who are net importers of food items.
Realizing the importance of agriculture sector, the Government encourage financial
inclusion activities in the agriculture sector to adopt new approaches in order to boost
the productivity and exports, thus enhancing a rural development-driven economic
growth.

Agriculture Performance during 2021-22

During 2021-22, agriculture sector recorded a remarkable growth of 4.40 percent and
surpassed the target of 3.5 percent and last year’s growth of 3.48 percent. This growth
is mainly driven by high yields, attractive output prices and supportive government
policies, better availability of certified seeds, pesticides and agriculture credit. The crops
sector outperformed and posted a growth of 6.58 percent during 2021-22 against 5.96
percent last year. At sub sectors level, important crops, other crops and cotton ginning
depicted a significant growth of 7.24 percent, 5.44 percent and 9.19 percent,
respectively, against last year’s growth of 5.83 percent, 8.27 percent and -13.08 percent.
The growth in production of important crops namely cotton, rice, sugarcane and maize
are estimated at 17.9 percent, 10.7 percent, 9.4 percent and 19.0 percent respectively.
The cotton crop increased from 7.1 million bales reported last year to 8.3 million bales
during 2021-22; rice production increased from 8.4 million tonnes to 9.3 million tonnes;
sugarcane production increased from 81.0 million tonnes to 88.7 million tonnes; maize
production increased from 8.9 million tonnes to 10.6 million tonnes respectively, while
wheat production decreased from 27.5 million tonnes to 26.4 million tonnes. Other
crops having share of 13.86 percent in agriculture value addition and 3.14 percent in
GDP, grew by 5.44 percent on the back of increase in the production of pulses (29.82
Pakistan Economic Survey 2021-22

percent), oilseeds (24.75 percent), vegetables (11.52 percent), fruits (1.53 percent) and
fodders (0.36 percent).

Livestock having share of 61.89 percent in agriculture and 14.04 percent in GDP,
recorded a growth of 3.26 percent in 2021-22 compared to 2.38 percent during same
period last year. The fishing sector having share of 1.39 percent in agriculture value
addition and 0.32 percent in GDP, grew at 0.35 percent compared to growth of 0.73
percent in same period last year. Forestry sector having share of 2.14 percent in
agriculture value addition and 0.49 percent in GDP posted a positive growth of 6.13
percent against the negative growth of 0.45 percent last year (Table 2.1).
Table 2.1: Agriculture Growth (Base=2015-16) (%)
Sector 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 P
Agriculture 2.22 3.88 0.94 3.91 3.48 4.40
1. Crops (i+ii+iii) 1.37 4.61 -4.38 6.32 5.96 6.58
i) Important Crops 2.68 4.27 -8.59 5.24 5.83 7.24
ii) Other Crops -1.24 4.65 3.62 9.21 8.27 5.44
iii) Cotton Ginning 5.24 8.27 -11.23 -4.06 -13.08 9.19
2. Livestock 2.89 3.59 3.65 2.80 2.38 3.26
3. Forestry -2.92 2.24 7.22 3.36 -0.45 6.13
4. Fishing 1.22 1.57 0.78 0.63 0.73 0.35
P: Provisional
Source: Pakistan Bureau of Statistics

Water availability during Kharif 2021 recorded at 65.1 million acre feet (MAF) compared
to 65.1 MAF of Kharif 2020. Rabi season 2021-22 stood at 27.4 MAF, showing a decrease
of 12 percent over Rabi 2020-21. (Table 2.2).
Table 2.2: Actual Surface Water Availability (Million Acre Feet)
% increase/decrease
Period Kharif Rabi Total over the average system
usage (103.5 MAF)
Average system usage 67.1 36.4 103.5 -
2014-15 69.3 33.1 102.4 -1.1
2015-16 65.5 32.9 98.4 -4.9
2016-17 71.4 29.7 101.1 -2.3
2017-18 70.0 24.2 94.2 -9.0
2018-19 59.6 24.8 84.4 -18.5
2019-20 65.2 29.2 94.4 -8.8
2020-21 65.1 31.2 96.3 -7.0
2021-22 65.1 27.4 92.5 -10.6
Source: Indus River System Authority

I. Crop Situation
The important crops contribute 19.44 percent to value addition in agriculture sector and
4.41 percent to GDP. Other crops account for 13.86 percent in value addition of
agriculture sector and 3.14 percent in GDP. The production of important crops is given
in Table 2.3.

18
 Agriculture

Table 2.3: Production of Important Crops (000 Tonnes)

Year Cotton Sugarcane Rice Maize Wheat
(000 bales)
2015-16 9,917 65,482 6,801 5,271 25,633
- - - - -
2016-17 10,671 75,482 6,849 6,134 26,674
(7.6) (15.3) (0.7) (16.4) (4.1)
2017-18 11,946 83,333 7,450 5,902 25,076
(11.9) (10.4) (8.8) (-3.8) (-6.0)
2018-19 9,861 67,174 7,202 6,826 24,349
(-17.5) (-19.4) (-3.3) (15.7) (-2.9)
2019-20 9,148 66,380 7,414 7,883 25,248
(-7.2) (-1.2) (2.9) (15.5) (3.7)
2020-21 7,064 81,009 8,420 8,940 27,464
(-22.8) (22.0) (13.6) (13.4) (8.8)
2021-22(P) 8,329 88,651 9,323 10,635 26,394
(17.9) (9.4) (10.7) (19.0) (-3.9)
P: Provisional Note: Figures in parentheses are growth/decline rates
Source: Pakistan Bureau of Statistics

a) Important Crops
i) Cotton
Pakistan is 5th largest producer of cotton in
Fig-2.1: Cotton Production
the world. Export of cotton and textile
14000
products have a share of around 60 percent 11946
in overall exports of the country. It 12000
9861
contributes around 0.6 percent to GDP and 10000 9148
8329
2.4 percent of the value added in
(000 bales)

8000 7064
agriculture. Over the last decade or so, area
under cotton cultivation has been declined 6000

and replaced by its competing crops like 4000

sugarcane, maize, potato and rice. During 2000
2021-22, the cropped area declined to
0
1,937 thousand hectares (6.8 percent) 2017-18 2018-19 2019-20 2020-21 2021-22
against last year’s 2,079 thousand hectares. (P)

Cotton production increased to 8.329

million bales (17.9 percent) against last year’s 7.064 million bales. (Table 2.4 and Figure
2.1). Despite decline in area sown, cotton production increased due to improved yield. The
improvement in cotton yield was attributed to conducive weather conditions, smooth input
supplies, better crop management practices and favorable cotton prices in international and
domestic market.
Table 2.4: Area, Production and Yield of Cotton
Year Area Production Yield
(000 Hectare) % Change (000 Bales) % Change (Kgs/Hec) % Change
2017-18 2,700 - 11,946 - 753 -
2018-19 2,373 -12.1 9,861 -17.5 707 -6.1
2019-20 2,517 6.1 9,148 -7.2 618 -12.6
2020-21 2,079 -17.4 7,064 -22.8 578 -6.5
2021-22(P) 1,937 -6.8 8,329 17.9 731 26.5
P: Provisional
Source: Pakistan Bureau of Statistics

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Pakistan Economic Survey 2021-22

ii) Sugarcane
Sugarcane is of great significance for
Fig 2.2: Sugarcane Production
sugar related industries and 2nd largest
100000
agro-based industry after textile. Its 88651
90000 83333 81009
production accounts for 3.7 percent in 80000
agriculture’s value addition and 0.8 70000
67174 66380
percent in GDP. During 2021-22,

(000 Tonnes)
60000
sugarcane was cropped on 1,260 50000

thousand hectares recorded an increase of 40000

8.2 percent compared to last year’s sown 30000

area of 1,165 thousand hectares. A 20000

bumper sugarcane crop production 10000

recorded at 88.651 million tonnes during 0

2017-18 2018-19 2019-20 2020-21 2021-22 (P)
2021-22, up by 9.4 percent over last year
(81.009 million tonnes). The higher domestic sugar price and better sugarcane
procurement price incentivized growers to dedicate more area to sugarcane, favourable
weather conditions, better management and timely availability of quality inputs. The
area, production, and yield of sugarcane during the last five years are given in Table 2.5
and Figure 2.2.
Table 2.5: Area, Production and Yield of Sugarcane
Year Area Production Yield
(000 Hectare) % Change (000 Tonnes) % Change (Kgs/Hec.) % Change
2017-18 1,342 - 83,333 - 62,096 -
2018-19 1,102 -17.9 67,174 -19.4 60,956 -1.8
2019-20 1,040 -5.6 66,380 -1.2 63,841 4.7
2020-21 1,165 12.0 81,009 22.0 69,534 8.9
2021-22(P) 1,260 8.2 88,651 9.4 70,341 1.2
P: Provisional
Source: Pakistan Bureau of Statistics

iii) Rice
Rice is an important cash crop and after
Fig 2.3: Rice Production
wheat and it is 2nd major staple food item
10000 9323
consumed in the country. Its production 8420
9000
comprises of 34 percent of basmati (fine) 8000 7450 7414
7202
types and 66 percent of coarse types. 7000
During the last few years, production of
(000 Tonnes)

6000
coarse types is increasing as the farmers 5000

are bringing more areas under coarse 4000

hybrid types. It contributes 2.4 percent of 3000

value added in agriculture and 0.5 percent 2000

in GDP. During 2021-22, the crop was 1000

sown on 3,537 thousand hectares, 0

2017-18 2018-19 2019-20 2020-21 2021-22 (P)
showing an increase of 6.1 percent as
against 3,335 thousand hectares last year. The record high output of rice stood at 9.323
million tonnes during 2021-22, higher by 10.7 percent than last year’s production of
8.420 million tonnes. From the last couple of years, area under rice cultivation is

20
 Agriculture

witnessing rising trend. As domestic rice production exceeds domestic annual

requirement, the country often has exportable surplus. The area, production, and yield
of rice during the last five years are shown in Table 2.6 and Figure 2.3.
Table 2.6: Area, Production and Yield of Rice
Year Area Production Yield
(000 Hectare) % Change (000 Tonnes) % Change (Kgs/Hec.) % Change
2017-18 2,901 - 7,450 - 2,568 -
2018-19 2,810 -3.1 7,202 -3.3 2,563 -0.2
2019-20 3,034 8.0 7,414 2.9 2,444 -4.6
2020-21 3,335 9.9 8,420 13.6 2,525 3.3
2020-22(P) 3,537 6.1 9,323 10.7 2,635 4.4
P: Provisional
Source: Pakistan Bureau of Statistics

iv) Wheat
Wheat is the staple crop and it ensures food Fig 2.4: Wheat Production
security of the country. Wheat is cultivated
28000
over 22 million acres and accounts for 7.8 27500
27464
percent of the value added in agriculture and 27000
1.8 percent of GDP. Self-sufficiency in wheat 26500
26394

has been an objective of every Government and 26000

(000 Tonnes)

thus always challenges for the agriculture 25500 25076 25248

experts and policy makers. Wheat is a strategic 25000
24349
crop and any shortfall in its production can 24500

create an awkward situation leading to 24000

23500
political uncertainty, significant drainage of
23000
foreign reserves, rise in prices of wheat flour 22500
and pocket shortages in vulnerable areas. 2017-18 2018-19 2019-20 2020-21 2021-22 (P)

During 2021-22, area sown decreased to 8,976

thousand hectares (2.1 percent) against last year’s of 9,168 thousand hectares. The production
of wheat declined to 26.394 million tonnes (3.9 percent) compared to 27.464 million tonnes
production of last year. Wheat production declined due to decline in area sown, shortfall in
irrigation water and drought conditions at sowing, less fertilizers offtake and heat wave in
March/April, though the government has increased Minimum Support Price to Rs 2200/40 kg
this year is aligned to the cost of production. The wheat production position over the last
five years is given in Table 2.7 and Figure 2.4.

Table 2.7: Area, Production and Yield of Wheat

Year Area Production Yield
(000 Hectares) % Change (000 Tonnes) % Change (Kgs /Hec.) % Change
2017-18 8,797 - 25,076 - 2,851 -
2018-19 8,678 -1.4 24,349 -2.9 2,806 -1.6
2019-20 8,805 1.5 25,248 3.7 2,868 2.2
2020-21 9,168 4.1 27,464 8.8 2,996 4.5
2021-22(P) 8,976 -2.1 26,394 -3.9 2,940 -1.9
P: Provisional
Source: Pakistan Bureau of Statistics

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Pakistan Economic Survey 2021-22

Box-I: Impacts of the Conflict between the Russia-Ukraine on Food and Agriculture Markets in
Pakistan
Pakistan imports significant amounts of wheat, pulses, and oilseeds from the Russia and Ukraine. Last
year, imports from Russia and Ukraine contributed for 77.3 percent of total wheat imports, 19.3 percent
of total pulses imports, and 10.4 percent of total oilseed imports into the country. Moreover, although
Pakistan is not primarily dependent on these two countries for fertilizers and fossil fuels, it is likely to
bear the brunt of rising international prices for fertilizers and energy.
Due to high fertilizer prices and drought in some parts of the country, Pakistan has missed its wheat
production target of 28.90 million metric tons (MMT) for 2021-22 season. Therefore, Pakistan will most
likely need to import 3.0 MMT of wheat in the next few months. Wheat prices were already rising to
historic levels, but with the ongoing conflict between the Russia and Ukraine, international wheat prices
are now at their highest level in the last few decades. The increased cost of production domestically,
due to increased fertilizer and energy prices, are expected to raise the price of wheat in the Pakistani
market.
Cooking oil and ghee are also essential food commodities in Pakistan. The country's annual requirement
for edible oil is around 4.1 MMT. In 2021, Pakistan produced only 11 percent of edible oil required for
domestic consumption, and the rest of 89 percent was imported. Since the beginning of the conflict, the
price of cooking oil in Pakistan has increased by 14.2 percent, and that of vegetable ghee has risen by
15.8 percent in just six weeks. This increasing trend is likely to persist as the international edible oils
market may experience a considerable shortfall due to the conflict.
Source: Food and Agriculture Organization of the United Nations, Pakistan

v) Maize
During 2021-22, maize crop was sown on
area of 1,653 thousand hectares and Fig 2.5: Maize Production
recorded increase of 16.6 percent over 12000
10635
last year’s cultivated area of 1,418
10000 8940
thousand hectares. Maize crop output
7883
recorded at 10.635 million tonnes 8000
6826
(000 Tonnes)

witnessing significant growth of 19.0 5902

6000
percent over 8.940 million tonnes last
year Maize contributes 3.2 percent value 4000
added in agriculture and 0.7 percent to
GDP. The increase in production was 2000

mainly due to increased sown area, 0

availability of improved high yield seed 2017-18 2018-19 2019-20 2020-21 2021-22 (P)

varieties, favourable weather conditions

and better economic returns. Last five years production position maize is presented in
Table 2.8 and Figure 2.5.
Table 2.8: Area, Production and Yield of Maize
Year Area Production Yield
(000 Hectares) % Change (000 Tonnes) % Change (Kgs /Hec.) % Change
2017-18 1,251 - 5,902 - 4,718 -
2018-19 1,374 9.8 6,826 15.7 4,968 5.3
2019-20 1,404 2.2 7,883 15.5 5,614 13.0
2020-21 1,418 1.0 8,940 13.4 6,305 12.3
2021-22 (P) 1,653 16.6 10,635 19.0 6,436 2.1
P: Provisional
Source: Pakistan Bureau of Statistics

22
 Agriculture

b) Other Crops
During 2021-22, gram production grew by 36.3 percent and reached to 319 thousand
tonnes on account of availability of certified seeds and favourable weather conditions
compared to last year. The production of rapeseed & mustard increased by 26.7 percent
while production of Jowar and Bajra witnessed a decrease of 33.3 percent and 15.0
percent, respectively, due to decline in area under cultivation. The production of Barley
and Tobacco remained at the last year’s production level. The area and production of
other crops is given in Table 2.9.
Table 2.9: Area and Production of Other Kharif and Rabi Crops
Crops 2020-21 2021-22(P) % Change in
Area Production Area Production production over
(000 Hectares) (000 Tonnes) (000 Hectares) (000 Tonnes) Last year
Bajra 350 266 227 226 -15.0
Jowar 126 96 77 64 -33.3
Gram 883 234 867 319 36.3
Barley 42 42 39 42 -
Rapeseed & Mustard 224 296 277 375 26.7
Tobacco 55 168 55 168 -
P: Provisional
Source: Pakistan Bureau of Statistics

During 2021-22, the production of chillies, potato and moong increased by 36.6 percent,
35.1 percent and 29.0 percent, respectively, as compared to same period of last year.
However, the production of mash and onion declined by 11.6 percent and 8.5 percent,
respectively, while production of masoor remained same over last year. The area and
production of other crops is given in Table 2.10.
Table 2.10: Area and Production of Other Crops
Crops 2020-21 2021-22(P) % Change in
Area Production Area Production production
(000 Hectares) (000 Tonnes) (000 Hectares) (000 Tonnes) over Last year
Masoor 6.9 4.1 5.8 4.1 -
Moong 231.1 204.5 301.8 263.8 29.0
Mash 11.0 6.9 8.0 6.1 -11.6
Potato 234.3 5,873.0 313.8 7,937.1 35.1
Onion 153.8 2,305.7 141.0 2,108.8 -8.5
Chillies 46.8 105.4 58.1 144.0 36.6
P: Provisional
Source: Pakistan Bureau of Statistics

i) Oilseeds
During FY2022 (July-March), 2.754 million tonnes of edible oil/oil from oilseed for
crushing total value Rs 662.657 billion (US$ 3.681 billion) was imported. Local
production of edible oil during this period is provisionally estimated at 0.460 million
tonnes. Total availability of edible oil during this period is estimated at 3.214 million
tonnes. The area and production of oilseed crops is given in Table 2.11.

23
Pakistan Economic Survey 2021-22

Table 2.11: Area and Production of Major Oilseed Crops (000 Tonnes)
Crops 2020-21 2021-22 (July-March) (P)
Area Production Area Production
(000 Acres) Seed Oil (000 Acres) Seed Oil
Cottonseed 5,137 1,782 214 4,740 2,126 255
Rapeseed & Mustard 608 338 108 692 377 121
Sunflower 151 87 33 253 141 54
Canola 77 49 19 124 79 30
Total 5,073 2,256 374 5,809 2,723 460
P: Provisional
Source: Pakistan Oilseed Development Board (PODB), Pakistan Bureau of Statistics

For promotion of oilseed crops, Ministry of National Food Security & Research (M/o
NFS&R) is executing a mega project “National Oilseed Enhancement Programme” with a
total cost of Rs 10.964 billion under the National Agriculture Emergency Programme.
Subsidy of Rs 5,000 per acre for seed/inputs for canola, sunflower and sesame and 50
percent on purchase of oilseed machineries is being provided to oilseed growers.

II. Farm Inputs

i) Fertilizer
Pakistan meets around 86 percent of its fertilizer requirement through domestic
production while remaining 14 percent through imports.

The domestic production of fertilizers during FY2022 (July-March) increased by 1.9

percent over the same period of last year. This increase in domestic production of
fertilizer is mainly due to running of two LNG based plants FatimaFert and Agritech
Limited from September 2021 to March 2022. Although the import of fertilizer
decreased by 6.2 percent, however the total availability of fertilizer slightly increased by
0.5 percent. There was decrease in total offtake of fertilizer nutrients by 3.6 percent.
Nitrogen offtake witnessed slightly upward movement by 0.02 percent while Phosphate
offtake decreased by 14.3 percent. However, Potash offtake increased by 10.7 percent
during FY2022 (July-March). Major reasons for negative growth in Phosphate use is its
high prices in international market and accordingly in domestic market. Price of urea
increased by 10.4 percent, while that of DAP increased by 88.7 percent. Federal
Government announced subsidy of Rs 1,000 per bag of DAP to compensate farming
community.
Total availability of urea during Kharif 2021 was 3,404 thousand tonnes, comprising of
298 thousand tonnes of opening inventory and 3,106 thousand tonnes of domestic
production (Table 2.12). Urea offtake was about 3,258 thousand tonnes, leaving
inventory of 116 thousand tonnes for Rabi 2021-22. Availability of DAP was 1,232
thousand tonnes, comprising of 55 thousand tonnes of opening inventory, 733 thousand
tonnes of imported supplies and 444 thousand tonnes of local production. DAP offtake
was 889 thousand tonnes leaving an inventory of 353 thousand tonnes for the upcoming
Rabi 2021-22.

Rabi 2021-22 started with an opening balance of 116 thousand tonnes of urea (Table
2.12). Domestic production during Rabi 2021-22 was estimated at 3,272 thousand

24
 Agriculture

tonnes. A quantity of 100 thousand tonnes arrived through import from China. Urea
offtake during Rabi 2021-22 is projected around 3,195 thousand tonnes, against 3,489
thousand tonnes of total availability, leaving a closing balance of 294 thousand tonnes
for upcoming season. DAP availability during Rabi 2021-22 is estimated about 1,181
thousand tonnes, which includes 353 thousand tonnes of opening inventory, 385
thousand tonnes of imported supplies and domestic production of 443 thousand tonnes.
Offtake of DAP during Rabi season stood at 933 thousand tonnes, leaving a balance of
255 thousand tonnes for next season.
The total availability of urea during Kharif 2022 will be about 3,508 thousand tonnes,
comprising of 294 thousand tonnes of opening balance and 3,214 thousand tonnes of
domestic production (Table 2.12). Urea offtake is expected to be around 3,364 thousand
tonnes, leaving a balance of 144 thousand tonnes. The total availability of DAP will be
705 thousand tonnes against expected offtake of 907 thousand tonnes. Supply and
demand gap will be filled through imported supplies by the private sector.
Table 2.12: Fertilizer Supply Demand Situation (000 Tonnes)
Description Kharif (Apr-Sep) 2021 Rabi (Oct-Mar) 2021-22 Kharif (Apr-Sep) 2022
Urea DAP Urea DAP Urea DAP
Opening Stock 298 55 116 353 294 255
Imported Supplies 0 733 100 385 0 30
Domestic Production 3,106 444 3,272 443 3,214 420
Total Availability 3,404 1,232 3,489 1,181 3,508 705
Offtake/Demand 3,258 889 3,195 933 3,364* 907
Write on/off -29.8 9 0 7 0 0
Closing Stock 116 353 294 255 144 -202
*: Offtake projections are based on demand received from Punjab province and three-year average offtake for
rest of the provinces.
Source: National Fertilizer Development Centre

ii) Improved Seed

Seed is basic input for agriculture sector and has imperative role in enhancing
agriculture productivity, food security and poverty alleviation. Certified seed is the
starting point to a successful crop as well as an important risk management tool.
Production of certified seed is carefully controlled under a quality assurance and
regulation system right from the very beginning. Seed certification is a legally sanctioned
system for quality control of seed multiplication and production. The purpose of seed
certification is to maintain and make available to the public, through certification, high
quality seeds and propagating materials of notified and registered varieties. It has been
reckoned that countries round the world have focused on use of certified seed for
enhancing agriculture productivity owning to its better profitability coupled with
application of internationally acceptable quality parameters.
Seed Sector Achievements
1. International Collaboration
For seed sector development in Pakistan, Federal Seed Certification & Research
Department (FSC&RD) International Cooperation section was in the process of
deliberations during 2021-22 (July-March) through different cooperation proposals

25
Pakistan Economic Survey 2021-22

with the following countries and international organizations; D-8, SAARC, FAO, ECO,
Turkey, Netherlands, Germany, UK, Middle east, Azerbaijan, USA, Japan, Russia, Korea,
China and Turkmenistan.
2. Distinctness, Uniformity and Stability (DUS) Examination
A total of about 149 new candidate lines of Oilseeds, Vegetables, Pulses, Fruits, Paddy,
Fodder & Forage, Medicinal plant, Maize, Wheat & Cotton have been examined for DUS
trials during the subject period. DUS examination is under progress.
3. Track and Traceability of Certified Seed
FSC&RD collected traceability data from majority of seed companies which revealed that
total wheat seed availability was 638,000 MT (before processing out of which companies
processed 520,000 MT and 947,855 certified seed tags were issued for 474,000 MT after
testing by FSC&RD. A total of 338,464 MT of certified seed was supplied by the seed
companies to seed dealers depending on market demand and 206,680 MT of certified
seed was sold to farmers i.e., 31 percent of total seed availability and 19 percent of total
seed requirement (1,075,562 MT). This showed that certified seed replacement was 19
percent out of which 160,715 MT of new rust tolerant varieties have been given to
farmers (i.e., 15 percent certified seed replacement of new varieties).
The area, seed requirement and seed availability during FY2022 (July-March), are given
in Table 2.13.
Table 2.13: Area, Seed Requirement and Seed Availability (Metric Tonnes)
Crop Sowing Total Seed Seed Availability
Area* Requirement Public Private Imported Total **
(000 Ha)
Wheat 9,210 1,137,435 76,309 561,300 0 637,609
Cotton 2,330 39,940 425 28,712 0 29,137
Paddy 3,070 44,148 965 40,037 4,145 45,167
Maize 1,331 32,868 88 2,494 15,615 18,198
Pulses 1,185 42,674 379 3,980 0 4,359
Oilseeds 830 10,790 2 1,031 467 1,500
Vegetables 280 8,400 0 1,058 2,828 3,886
Fodders 2,038 61,140 0 5,961 19,028 24,999
Potato 166 415,000 0 0 13,400 13,400
Total 20,440 1,792,396 78,169 644,572 55,483 778,225
*: Targeted area has been decided by the Federal Committee on Agriculture (FCA), M/o NFS&R.
**: The seed availability figures (excluding wheat) are provisional
Source: Federal Seed Certification & Registration Department, M/o NFS&R

iii) Farm Mechanization

Farm mechanization is an important element to accelerate agriculture productivity.
Main constraint in increasing agriculture productivity includes non-availability of
quality tractors and agricultural machinery in the appropriate time of need at affordable
prices. The Federal Government continued the relief package that allowed on supply of
imported farm machinery and equipment at reduced tariff (Custom Duty 0-2 percent
and GST 05 percent) to encourage mechanized farming in the country.

26
 Agriculture

The domestic tractor industry has played a significant role in fulfilling the requirements
of tractors. The number of operational tractors in the country is around 670,000
resulting in availability of around 0.09 horsepower (HP) per acre against the required
power of 1.4 HP per acre. During 2021-22 (July-March), total tractor production reached
to 41,871 compared to 36,900 produced last year, a 13.5 percent higher than same
period last year. The prices and production of locally manufactured tractors are given in
Table 2.14.
Table 2.14: Prices and Production of Locally Manufactured Tractors 2021-22 (July-March)
Tractors Model – Base Price Total Price Actual Actual Sale
Horse Power (HP) Excluding Including Production (in Nos.)
GST (Rs) GST@ 5% (Rs) (in Nos.)
M/s Al-Ghazi Tractors Limited
NH-480-S (55 HP) 1,170,000 1,228,500 3,720 3,725
NH-480 Power Plus (55 HP) 1,221,500 1,282,575 2,160 2,164
Ghazi (65 HP) 1,352,000 1,4,19,600 6,495 6,303
640 (75 HP) 1,733,000 1,819,650 3,208 3,078
Dabung (85 HP) 1,790,000 1,879,500 486 432
NH-70-56 4WD (85 HP) 2,355,000 2,472,750 36 35
Total 16,105 15,737
M/s Millat Tractors Limited
MF-240 (50 HP) 1,192,000 1,251,600 5,318 5,346
MF-350 P.S (50 HP) 1,380,000 1,449,000 08 0
MF-260 (60 HP) 1,378,000 1,446,900 4,389 4,387
MF-360 P.S (60 HP) 1,455,000 1,527,750 307 329
MF-375 (85 HP) 1,787,000 1,876,350 1,259 1,279
MF-385 (85 HP) 1,860,000 1,953,000 13,692 13,739
MF-375 4WD (75 HP) 2,320,000 2,436,000 153 142
MF-385 4WD (85 HP) 2,410,000 2,530,000 625 644
Total 25,766 25,866
Grand Total 41,871 41,603
Source: Tractor Manufacturers, Federal Water Management Cell

iv) Irrigation
During the monsoon season (July-September) 2021, rainfall recorded at 125.0 mm
showing a decline of 11.3 percent against the normal average rainfall of 140.9 mm.
During post-monsoon season (October-December) 2021, rainfall stood at 23.5 mm
against the normal average rainfall of 26.4, showing a decrease of 11.2 percent. During
winter season (January-March) 2022, rainfall recorded at 72.7 mm against the normal
average rainfall of 74.3 mm, showing a decrease of 2.2 percent. Rainfall recorded during
the reference period is given in Table 2.15.
Table 2.15: Pakistan’s Rainfall* Recorded During 2021-22 (in Millimetres)
Monsoon Rainfall Post Monsoon Rainfall Winter Rainfall
(Jul-Sep) 2021 (Oct-Dec) 2021 (Jan-Mar) 2022
Normal** 140.9 26.4 74.3
Actual 125.0 23.5 72.7
Shortage (-)/excess (+) -15.9 -2.9 -1.6
% Shortage (-)/excess (+) -11.3 -11.2 -2.2
*: Area Weighted **: Normal/Long Period Average of 1961-2010
Source: Pakistan Meteorological Department

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Pakistan Economic Survey 2021-22

Canal head withdrawals decreased by 0.05 percent during Kharif (April-September)

2021 and reached to 65.08 MAF compared to 65.11 MAF during the same season last
year. During Rabi (October-March) 2021-22, it recorded a decline of 12 percent to 27.42
MAF compared to 31.21 MAF during the same season last year. The province-wise
details are shown in Table 2.16.

Table 2.16: Canal Head Withdrawals (Below Rim Stations) (Million Acre Feet)
Province Kharif Kharif % Change in Rabi Rabi % Change in
(Apr-Sep) (Apr-Sep) Kharif 2021 (Oct-Mar) (Oct-Mar) Rabi 2021-22
2020 2021 Over 2020 2020-21 2021-22 Over 2020-21
Punjab 33.44 33.13 -1 17.42 14.65 -16
Sindh 28.80 28.96 1 12.01 11.08 -8
Balochistan 2.02 1.94 -4 1.22 1.00 -18
Khyber Pakhtunkhwa 0.85 1.05 23 0.57 0.70 23
Total 65.11 65.08 -0.05 31.21 27.42 -12
Source: Indus River System Authority

Pakistan has been blessed with a bounty of water resources. During its course, the Indus
River and its Tributaries irrigates 48 million acres of land through one of the world
largest contiguous Indus Basin Irrigation System having average annual withdrawal of
101 MAF water. It is estimated that approximately 50 MAF groundwater is pumped
through 1.2 million tubewells. Water is essential to meet the food need for country's
growing population. Rising population, reservoir sedimentation, dwindling river
supplies and climate change impacts have put Pakistan’s limited water resources under
immense stress. The country is facing severe water stress gradually morphing into water
scarcity.
The Government’s existing strategy of “Integrated Water Resources Management”
recognizes the need to introduce appropriate policy measures, institutional reforms, and
knowledge-based interventions to make water infrastructure and management system
more efficient and sustainable. Main targets for 2018-30 under National Water Policy
(2018) are; 33 percent reduction in the 46 MAF river flows lost in conveyance through
watercourses lining, live storage capacity enhancement of 10 MAF, 20 percent increase
in water use efficiency through modern irrigation techniques, refurbishment of
irrigation infrastructure, real-time monitoring of water distribution for transparent
water accounting and development of unified authentic database to have reliable water
resources assessment.

During FY2022, an amount of Rs 90.312 billion (10 percent of total PSDP) were allocated
for 91 water sector’s development projects/studies (including Mohmand Dam Rs 15
billion, Diamer Basha Dam Rs 8 billion, Diamer Basha Land acquisition Rs 7 billion and
Kachhi Canal 12 billion). Out of this, Rs 57.544 billion have been released till 31st March,
2022 against which utilization is Rs 47.618 billion.
Key Achievement during FY2022
 Despite the continuing impacts of COVID-19, construction activities remained in
progress on both national importance mega projects i.e., Diamer-Basha Dam and

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Mohmand Dam projects. On completion, these dams will greatly mitigate water and
power shortages in the country.
 Kachhi Canal (Phase-I) with 72,000 CCA in Balochistan remained operational. 55,000
of this command area has been developed.
 Work on Kachhi Canal Phase-I (Remaining works) having additional 30,000 acres
CCA remained in full swing.
 Rainee Canal Phase-I has been completed and handed over to Irrigation Department,
Government of Sindh.
 Initiation of about 30 new schemes of small dams/recharge/check having cost about
Rs 28.60 billion with an allocation of Rs 2.74 billion in Balochistan.
 Works on Kurram Tangi Dam Phase-I (Kaitu Weir Diversion and allied works)
remained in progress in North Waziristan. The project is planned to be completed in
next financial year.
 Detailed engineering design of Chashma Right Bank Canal (Lift-cum-Gravity) Project
completed, and PC-I submitted by MoWR is under approval process.
 Upon approval of PC-II, Expression of Interests were published for hiring of
Consultants for Detailed engineering design of Kurram Tangi Dam Phase-II.
 Under Karachi Transformation Plan (Storm Water Drain Projects), Restoration &
Revamping of Mehmoodabad Nullah was completed, while Restoration & Revamping
of Gujjar Nullah & Orangi Nullah remained in progress.
 PC-I for Greater Karachi Bulk Water Supply Scheme K-IV approved by ECNEC on
31.01.2022.
 Under Southern Balochistan Package, approval of 17 water sector projects
including Sunni Gar, Panjgur, Gish Kaur, Awaran & Shehznek dams and one umbrella
PC-II covering 10 feasibility studies has been accorded.
 Under Sindh Package Feasibility study, detailed engineering design, Tender
documents & PC-I of Jacobabad, Shikarpur & Kashmore drainage projects, Feasibility
for construction of Drainage network in Taulka Ubauro, Daharki, Khangar, Mirpur
Mathelo of District Ghotki and construction of small Storage Dams, Delay Action
Dams, Recharge Weirs and I.S.S.O barriers have been initiated.
 Revised PC-I of Naulong Multipurpose Dam Project (Jhal Magsi, Balochistan)
amounting to Rs 39.9 billion recommended to ECNEC by CDWP.
 Consultants for detailed engineering design of Hingol Dam Project having 65,000
acres CCA in Lasbela, Balochistan under finalization.
 Contractor re-mobilized at Nai Gaj Dam site and re-commenced the suspended
works.
 Due to gradual decrease in the surface water inflow at Rim stations, water
availability at canal head for Kharif season 2021-22 remained 67.14 MAF compared
to 68.04 MAF in Kharif season 2020-21.
 In Balochistan, Sindh, Punjab and Khyber Pakhtunkhwa construction of
medium/small/delay action dams and recharge dams remained in progress in
FY2022. Province-wise detail is as under:

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Pakistan Economic Survey 2021-22

a) Punjab Ghabir & Papin dams.

b) Sindh Darawat & Nai Gaj Dams, Small dams in Kohistan, Thar &
Nagarparkar.
c) KP Kurram Tangi, Kundal, Sanam, Baran dams & 20 small dams in
Nowshera, Karak, Swabi, Hangu, Haripur & Kohat districts.
d) Balochistan Naulong, Garuk, Basool, Batozai, Mangi, Mara Tangi Dams and
construction of 100 small dams (Package-II, III and IV).

Physical progress of major on-going projects is given Table 2.17.

Table 2.17: Major Water Sector Projects under Implementation
Project Location App. cost Live Irrigated Area Status
(Rs million) Storage
Basha Dam Khyber 479,686 6.40 1.23 Million Acres ECNEC approved Dam part of the
(Dam Part Pakhtunkhwa MAF project on 14-11-2018 (out of Rs
only) & Gilgit 479 billion Rs 237 billion will be
Baltistan federal grant, Rs 144 billion
commercial financing, Rs 98
billion WAPDA equity).
Physical progress is 7.47 percent.
Financial progress is 12 percent.
Kachhi Canal Balochistan 80,352 - 72,000 Acres Phase-I completed. Out of
(Phase-I) 102,000 acres CCA about 55,000
acres developed in Dera Bugti,
Balochistan.
Nai Gaj Dam Dadu, Sindh 46,980 160,000 28,800 Acres 52 percent physical works
(Acre (4.2 MW completed
Feet) Power Gen.)
Kurram Tangi Khyber 21,059 0.90 16,400 Acre 70 percent physical works
Dam (Phase- Pakhtunkhwa MAF (18.9 MW Power completed.
I,Kaitu Weir) Gen.)
Naulong Dam Jhal Magsi, 39,900 0.20 47,000 Acres Feasibility & Detailed
Balochistan MAF (4.4 MW engineering design completed.
Power Gen.) Updated 2nd revised PC-I under
approval from ECNEC.
Mohmand Dam Mohmand 114,285 0.676 16,737 Acres Phase-I ECNEC approved on 30-
Hydropower District of (dam part) MAF 06-2018 at a Total cost of Rs
Project Khyber cost 309.558 billion (dam part+
(800 MW) Pakhtunkhwa power generation cost).
Physical progress is 16.73
percent.
Financial progress is 16 percent.
Darawat Dam Jamshoro, 9,300 89,192 25,000 Acres Physically completed.
Sindh (Acre CAD to be expedited by Govt of
Feet) Sindh.
Hingol Dam Lasbela, - 0.816 65,000 Acres Feasibility study completed.
Balochistan (MAF) (1.37 MW Power Detailed engineering design
Gen.) commenced.
Rajanpur,
0.60 120,000 Acres Feasibility study, detailed
Murunj Dam Punjab. -
(MAF) (12 MW Power Gen.) engineering design in progress.
Thatta,
1.80 Feasibility study near
Sindh Barrage Sindh. - -
(MAF) completion by WAPDA.

Source: Ministry of Planning, Development & Special Initiatives

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 Agriculture

Packages Announced by Federal Government

Financial
Key Initiative Activity/action conducted Results Achieved
Expenditure
Karachi Transformation Plan Approval and releases of Rs 34,505.738 ➢ Restoration & Rs 8 billion
(Storm Water Drain Projects) million to 4 projects namely revamping of have been
i) Restoration & revamping of Mehmoodabad expended till
Mehmoodabad Nullah and its Nullah and its 28th Feb. as
Tributaries Tributaries have reported by
ii) Restoration & revamping of Gujjar been completed Sponsors.
Nullah ➢ Restoration &
iii) Restoration & revamping of Orangi revamping of
Nullah Gujjar Nullah &
iv) Restoration & revamping of Liyari & Orangi Nullah are
Malir Rivers with associated being
Tributaries implemented

Karachi Transformation Plan Approval of Revised PC-I  Projects is under 3 percent

(K-4 Greater Water Supply implementation funds released
Scheme) till 2nd quarter
as reported by
sponsors
Southern Balochistan Package Approval of 17 water sector projects New Projects are at -
including Sunni Gar, Panjgur, Gish Kaur, tendering phase
Awaran & Shehzenic dams and one
umbrella PC-II covering 10 feasibility
studies.
Total approved projects under SBDP: 27
New Projects: 10
On-going projects: 7
Feasibility studies: 10
Sindh Package Approval of projects under Sindh Projects are under -
(i) Nai Gaj Dam project, ii) Package implementation
Feasibility Study, Detailed
Engineering Design, Tender
Documents & PC-I of Jacobabad,
Shikarpur & Kashmore Drainage
projects, iii) Feasibility for
construction of Drainage
network in Taulka Ubauro,
Daharki, Khangar, Mirpur
Mathelo of District Ghotki iv)
Construction of Small Storage
Dams, Delay Action Dams,
Recharge Weirs and I.S.S.O
barriers in Sindh
Source: Ministry of Planning, Development & Special Initiatives

iv) Agricultural Credit

SBP has allocated the indicative agriculture credit disbursement targets of Rs 1,700
billion for FY2022 which is 24.5 percent higher than last year’s disbursement of Rs
1,366.0 billion. Currently, 50 formal financial institutions are providing agriculture loans
to the farming community, which include 5 major commercial banks, 14 medium-sized
domestic private banks, 5 Islamic banks, 2 specialized banks (ZTBL & PPCBL), 11
microfinance banks besides 13 Microfinance Institutions/Rural Support Programmes
(MFIs/RSPs).

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Pakistan Economic Survey 2021-22

During FY2022 (July-March), banks have disbursed Rs 958.3 billion which is 56.4
percent of the overall annual target and 0.5 percent higher than the disbursement of Rs
953.7 billion made during the same period last year. Further, the outstanding portfolio
of agricultural loans has increased by Rs 30.9 billion i.e., from Rs 601.8 billion to Rs 632.7
billion at end March 2022 as compared to same period last year. In terms of outreach,
the number of outstanding borrowers has reached to 3.2 million in March 2022. The
comparative disbursements of agriculture lending banks/institutions against their
annual indicative targets during FY2022 (July-March) are given in Table 2.18

Table 2.18: Supply of Agriculture Credit by Institutions (Rs billion)

Banks Target FY2021 (July-March) Target FY2022 (July-March) %
FY2021 Disbursed Achieved FY2022 Disbursed Achieved Change
(%) (%) over the
Period
Major Commercial
Banks (5) 800 554.2 69.3 900 525.7 58.4 -5.1
ZTBL 105 56.5 53.8 105 47.0 44.8 -16.8
PPCBL 13 5.2 39.8 13 4.8 36.9 -7.3
DPBs (14) 296 192.5 65.0 367 202.2 55.1 5.0
Islamic Banks (5) 63 35.9 57.0 80 47.9 59.8 33.3
MFBs (11) 182 92.8 51.0 195 112.1 57.5 20.8
MFIs/RSPs 41 16.6 40.5 40 18.6 46.6 12.1
Total 1,500 953.7 63.6 1,700 958.3 56.4 0.5
Source: State Bank of Pakistan

Analysis of the sector-wise disbursement reveals that out of the total disbursement of
Rs 958.3 billion, the farm sector has received Rs 474 billion (49.5 percent) and Rs 484.3
billion (50.5 percent) has been disbursed to non-farm sector during FY2022 (July-
March). However, the data of farm credit by land holdings reveals that Rs 170.5 billion
has been disbursed to the subsistence farm size which witnessed 13.7 percent growth
during the period. Moreover, Rs 66.2 billion has been disbursed to economic farm size
and Rs 237.3 billion to the above economic farm size witnessing a decline of 21.3
percent. Under non-farm sector, agriculture lending institutions disbursed Rs 128.2
billion to small farms with positive growth mainly due to credit off take in non-farm
sector activities especially in livestock/dairy and meat sector. Moreover, Rs 356.0 billion
has been disbursed to large farms showing a growth of 3.6 percent during FY2022 (July-
March). The sector-wise comparative details of credit disbursements are given below in
Table 2.19.
Table 2.19: Credit Disbursement to Farm & Non-Farm Sectors (Rs billion)
Sector FY2021 (July-March) FY2022 (July-March) %
(Land Holding/Farm size) Disbursement % Share Disbursement % Share Growth
in Total in Total over the
Period
A Farm Sector 507.9 53.3 474.0 49.5 -6.7
1 Subsistence Holding1 150 15.7 170.5 17.8 13.7
2 Economic Holding2 56.2 5.9 66.2 6.9 17.8

1 Landholding in acres (Punjab and KP up to 12.5, Sindh up to 16.0 and Balochistan up to 32.0)
2 Landholding in acres (Punjab and KP 12.5-50.0, Sindh 16.0-64.0 and Balochistan 32.0-64.0)

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Table 2.19: Credit Disbursement to Farm & Non-Farm Sectors (Rs billion)
Sector FY2021 (July-March) FY2022 (July-March) %
(Land Holding/Farm size) Disbursement % Share Disbursement % Share Growth
in Total in Total over the
Period
3 Above Economic Holding3 301.7 31.6 237.3 24.8 -21.3
B Non-Farm Sector 445.8 46.7 484.3 50.5 8.6
1 Small Farms 102.1 10.7 128.2 13.4 25.6
2 Large Farms 343.7 36 356 37.2 3.6
Total (A+B) 953.7 100 958.3 100 0.5
Source: State Bank of Pakistan

In terms of sectoral and purpose-wise performance of agriculture credit, the production

loans of farm sector declined by 8.0 percent, whereas development loans increased by
15.5 percent during the period FY2022 (July-March). Further, under non-farm sector,
the livestock/dairy & meat sector witnessed 7.8 percent growth and poultry sector
recorded 6.9 percent growth during the period under review. The sector wise/purpose
wise agricultural credit disbursements are shown in Table 2.20:
Table 2.20: Credit Disbursements by Sector & Purpose (Rs billion)
FY2021 (July-March) FY2022 (July-March) %
Amount % Share Amount % Share Growth
Sector& Purpose over the
Disbursed within Sector Disbursed within Sector
Period

A Farm Sector 507.9 53.3 474.0 49.5 -6.7

1 Production Loans 452.4 89.1 441.3 93.1 -8.0
2 Development Loans 55.6 10.9 32.7 6.9 15.5
B Non-Farm Sector 445.8 46.7 484.3 50.5 8.6
1 Livestock/Dairy & Meat 250.1 56.1 269.7 55.7 7.8
2 Poultry 158.0 35.4 168.9 34.9 6.9
3 Fisheries 5.3 1.2 9.6 2.0 81.0
4 Forestry 0.011 0.003 0.0 0.0 33.1
5 Others 32.4 7.3 36.1 7.5 11.4
Total (A+B) 953.7 100 958.3 100 0.5
Source: State Bank of Pakistan

SBP’s Initiatives for the Promotion of Agriculture Financing

For promotion of agricultural financing, some of the major initiatives taken by SBP in
collaboration with Federal & Provincial Governments are as under:
i. Crop Loan Insurance Scheme (CLIS) & Livestock Insurance Scheme for
Borrowers (LISB): CLIS has enabled financial access for farmers, with premium for
small farmers being borne by the government.
ii. Credit Guarantee Scheme for Small & Marginalized Farmers (CGSMF): With
support from Federal Government, SBP is offering a CGSMF. This scheme can be
availed by banks for providing loans to small farmers, with default protection of up
to 50 percent. Under this scheme, loans of Rs 2.56 billion are outstanding as of 28th

3 Landholding in acres (Punjab and KP above 50.0, Sindh and Balochistan above 64.0)

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Pakistan Economic Survey 2021-22

February, 2022. Since its inception, more than 131,000 farmers have benefitted
through this scheme against Rs 1.1 billion funds released by the Federal Government.
iii. Adoption of Electronic Land Record Management Information System (LRMIS)
by banks for Agriculture Financing: SBP is working in collaboration with
Provincial Governments and financial institutions for implementing and
mainstreaming electronic land verification records and charge creation for availing
bank loans.
iv. Promoting Electronic Warehouse Receipt Financing (EWRF): EWRF is a form of
credit, extended by banks to farmers, traders and processors against
commodities/agricultural produce stored in accredited warehouses. In order to
allow banks to start EWRF in line with Collateral Management Company (CMC)
Regulations 2019, SBP has issued the necessary amendments in Prudential
Regulations while allowing EWR as acceptable collateral for bank financing. Further,
to sensitize banking industry and kick start of EWRF in Pakistan, SBP has formally
launched EWRF in February, 2022 wherein 25 banks signed the System Usage
Agreements (SUA) with CMC.
v. Introduction of Scoring Model for Agriculture Credit Performance of Banks:
SBP has introduced the scoring model to promote fairness and transparency in
gauging the individual performances of agriculture lending banks. The scoring model
utilizes a multi-dimensional criteria based on various indicators, which are used to
calculate an aggregate statistic reflective of each bank’s agriculture credit
performance.
vi. Introduction of Champion Bank Concept: To address the bottlenecks in
agriculture credit outreach in underserved areas by introducing the concept of
provincial/regional champion banks in underserved areas. The six regional
champion banks will spearhead the efforts in their respective assigned
province/region (Southern Punjab, Sindh, Khyber Pakhtunkhwa, Balochistan, AJK
and GB) to enhance flow of credit and bring more borrowers into the fold of formal
credit network.

III. Forestry
According to the latest findings of National Forest Reference Emissions Level (FREL),
the country is maintaining 4.786 million hectare (5.45 percent) area under forest cover.
Within the forest cover area, dry temperate forests hold the largest share (36 percent),
followed by sub-tropical broadleaved shrub (19 percent), moist temperate (15 percent),
Chir Pine (13 percent), Riverine (4 percent), irrigated plantation (4 percent), thorn (3
percent), mangrove (3 percent) and subalpine forests (2 percent). The inadequate forest
cover area due to growing population and dependence on the natural resources coupled
with deforestation have rendered the country one of the most vulnerable to climate
change effects. As a result, natural resources are under tremendous pressure owing to
change of land use and habitat destruction and consumption of fuel wood and timber
extraction. Such pressures have rendered most of the forests of poor and medium
density in need of drastic restocking on war footing.

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 Agriculture

IV. Livestock and Poultry

a) Livestock
Livestock is contributing approximately 61.9 percent of agriculture value added and
14.0 percent to the national GDP during 2021-22. Animal husbandry is the most
significant economic activity of the dwellers of rural areas of Pakistan. More than 8
million rural families are engaged in livestock production and are deriving around 35-
40 percent of their income from this sector. Gross value addition of livestock has
increased from Rs 5,269 billion (2020-21) to Rs 5,441 billion (2021-22), showing an
increase of 3.26 percent. (Base Year 2015-16)
The Government has renewed its focus on this sector for economic growth, food security,
and poverty alleviation in the country. The overall livestock development strategy
resolves to foster "private sector-led development with public sector providing enabling
environment through policy interventions". The regulatory measures are aimed at
enhancing per unit animal productivity by improving veterinary health coverage,
husbandry practices, animal breeding practices, artificial insemination services, use of
balanced ration for animal feeding, and controlling livestock diseases.
To address investment related issues in the value-added livestock export sector,
Government is considering to develop this sector in the shape of export meat processing
zones, disease free zones (for Foot & Mouth Disease (FMD), Peste des Petitis Ruminants
(PPR), Highly Pathogenic Avian Influenza (HPAI), facilitate setting up of modern slaughter
houses after assessing industry’s requirements and provide various schemes through
the financial sector support. The focus of present Government is on breed improvement
for enhanced productivity, establishment of nucleus herd and identification of breeds
that are well adapted to various agro ecological zone of Pakistan. The national herd
population of livestock for the last three years is given in Table 2.21.
Table 2.21: Estimated Livestock Population (Million Nos.)
Species 2019-201 2020-211 2021-221
Cattle 49.6 51.5 53.4
Buffalo 41.2 42.4 43.7
Sheep 31.2 31.6 31.9
Goat 78.2 80.3 82.5
Camels 1.1 1.1 1.1
Horses 0.4 0.4 0.4
Asses 5.5 5.6 5.7
Mules 0.2 0.2 0.2
1: Estimated figure based on inter census growth rate of Livestock Census 1996 & 2006

Source: Ministry of National Food Security & Research

The position of milk and meat production for the last three years is given in Table 2.22.
Table 2.22: Estimated Milk and Meat Production (000 Tonnes)
Species 2019-201 2020-211 2021-221
Milk (Gross Production) 61,690 63,684 65,745
Cow 22,508 23,357 24,238
Buffalo 37,256 38,363 39,503

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Pakistan Economic Survey 2021-22

Table 2.22: Estimated Milk and Meat Production (000 Tonnes)

Species 2019-201 2020-211 2021-221
Sheep 2 41 41 42
Goat 965 991 1,018
Camel2 920 932 944
Milk (Human Consumption)3 49,737 51,340 52,996
Cow 18,007 18,686 19,390
Buffalo 29,805 30,691 31,603
Sheep 41 41 42
Goat 965 991 1,018
Camel 920 932 944
Meat4 4,708 4,955 5,219
Beef 2,303 2,380 2,461
Mutton 748 765 782
Poultry meat 1,657 1,809 1,977
1: The figures for milk and meat production for the indicated years are calculated by applying milk production parameters to
the projected population of respective years based on the inter census growth rate of Livestock Census 1996 & 2006.
2: The figures for the milk production for the indicated years are calculated after adding the production of milk from camel and
sheep to the figures reported in the Livestock Census 2006.
3: Milk for human consumption is derived by subtracting 20 percent wastage (15 percent faulty transportation and lack of
chilling facilities and 5 percent in suckling calf nourishment) of the gross milk production of cows and buffalo.
4: The figures for meat production are of red meat and do not include the edible offal’s.
Source: Ministry of National Food Security & Research

The estimated production of other livestock products for the last three years is given in
Table 2.23.
Table 2.23: Estimated Livestock Products Production
Products Units 2019-201 2020-211 2021-221
Eggs Million Nos. 20,133 21,285 22,512
Hides 000 Nos. 18,139 18,751 19,384
Cattle 000 Nos. 9,405 9,759 10,127
Buffalo 000 Nos. 8,622 8,878 9,142
Camels 000 Nos. 112 114 115
Skins 000 Nos. 59,460 60,837 62,250
Sheep Skin 000 Nos. 11,807 11,947 12,088
Goat Skin 000 Nos. 30,129 30,946 31,784
Fancy Skin 000 Nos. 17,524 17,945 18,377
Lamb Skin 000 Nos. 3,507 3,548 3,590
Kid Skin 000 Nos. 14,017 14,397 14,787
Wool 000 Tonnes 47.3 47.9 48.4
Hair 000 Tonnes 29.4 30.2 31.0
Edible Offal’s 000 Tonnes 440 452 465
Blood 000 Tonnes 73.1 75.0 77.0
Casings 000 Nos. 60,069 61,461 62,888
Guts 000 Nos. 19,280 19,929 20,599
Horns & Hooves 000 Tonnes 64.3 66.2 68.2
Bones 000 Tonnes 961.0 990.3 1,020.7
Fats 000 Tonnes 304.5 313.6 322.9
Dung 000 Tonnes 1,362 1,405 1,448
Urine 000 Tonnes 413 425 437
Head & Trotters 000 Tonnes 274.6 282.4 290.4
Ducks, Drakes & Ducklings Million Nos. 0.38 0.37 0.35
1:The figures for livestock product for the indicated years were calculated by applying production parameters to the projected
population of respective years.
Source: Ministry of National Food Security & Research

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 Agriculture

b) Poultry
Poultry sector is one of the most important segments of livestock that provides
employment to more than 1.5 million people in the country. With an investment of more
than Rs 750 billion, this industry is growing at an impressive growth rate of
approximately 7.5 percent per annum over the last decade that has enabled Pakistan to
occupy 11th position among the largest poultry producer of the world and has ample
space for further improvement.

Through farmer friendly policies/interventions, the Government has been encouraging

rural as well as commercial poultry production. The estimated production of
commercial and rural poultry products for the last three years is given in Table 2.24.
Table 2.24: Estimated Domestic/Rural & Commercial Poultry
Type Units 2019-201 2020-211 2021-221
Domestic Poultry Million Nos. 89.84 91.22 92.62
Cocks Million Nos. 12.51 12.85 13.20
Hens Million Nos. 43.93 44.72 45.52
Chicken Million Nos. 33.40 33.65 33.90
Eggs2 Million Nos. 4,393 4,472 4,552
Meat 000 Tonnes 124.72 127.22 129.76
Duck, Drake & Duckling Million Nos. 0.38 0.37 0.35
Eggs2 Million Nos. 17.18 16.47 15.78
Meat 000 Tonnes 0.52 0.50 0.48
Commercial Poultry Million Nos. 1,353.24 1,486.09 1,632.06
Layers Million Nos. 59.82 64.01 68.49
Broilers Million Nos. 1,279.76 1,407.73 1,548.51
Breeding Stock Million Nos. 13.66 14.34 15.06
Day Old Chicks Million Nos. 1,336.71 1,470.38 1,617.41
Eggs2 Million Nos. 15,723 16,797 17,944
Meat 000 Tonnes 1,531.60 1,681.64 1,846.48
Total Poultry
Day Old Chicks Million Nos. 1,370 1,504 1,651
Poultry Birds Million Nos. 1,443 1,578 1,725
Eggs Million Nos. 20,133 21,285 22,512
Poultry Meat 000 Tonnes 1,657 1,809 1,977
1: The figures for the indicated years are statistically calculated using the figures of 2005-06.
2: The figures for Eggs (Farming) and Eggs (Desi) are calculated using the poultry parameters for egg production.
Source: Ministry of National Food Security & Research

Ongoing Projects
The Federal Government has launched following programmes under the “Prime
Minister’s National Agriculture Emergency Programme”:
Prime Minister Initiative for Backyard Poultry Projects: Under this project, five
million pre-vaccinated high laying backyard birds will be distributed among public
across the country at subsidized rates. The total cost of the project is Rs 1.6 billion, where
30 percent contribution by federal and provincial governments, while rest of the cost
to be borne by the beneficiary. Since 2019, 2.927 million backyard poultry birds will be
distributed by the 30th June 2022 in all over the Pakistan except Sindh.

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Pakistan Economic Survey 2021-22

Prime Minister Initiative for Safe the Calf Project: Under this project, 380,000 male
calves are projected to be saved from early slaughter in 4 years period through financial
incentive of Rs 6,500 per calf to farmers besides reducing mortality with improved
nutrition and husbandry practices. This intervention is providing stock for feedlot
fattening for enhanced productivity and quality beef which ultimately result in high
profit margins for the farmers and reduced rural poverty. The total cost of the project is
Rs 3.4 billion. The Federal Government is contributing 20 percent of total cost, while the
remaining will be shared by provincial governments. Since 2019, 167175 calves would
be saved by the 30th June 2022 in all over the Pakistan except Sindh and Balochistan.
Prime Minister Initiative for Calf Feedlot Fattening in Pakistan: Under this
programme, Rs 4,000 for each calf has been allocated as financial incentive to persuade
farmers to produce healthy and nutritious beef in the country. In Balochistan, Rs 1500
cash incentive is given for each fattened sheep/goat. The intervention is promoting
feedlot fattening business in the country. The total cost of the project is Rs 2.4 billion.
Since 2019, 191757 calves fattened in all over Pakistan except Sindh and Balochistan
and 240,000 kid/lamb will be fattened in Balochistan by the 30th June 2022.

The following projects are also being launched by Federal Government:

i. Antimicrobial Resistance (AMR). The Fleming Fund Country Grant with the
support of U.K. Department of Health and Social Care Programme to help low-and
middle-income countries fight AMR has initiated a programme in collaboration of
Government of Pakistan with the following objectives:
 Improved policy environment for managing AMR-Data review and analysis

 Enhance quality and quantity of sites reporting on AMR

 Strengthening reference laboratories to strengthen AMR surveillance networks

 Improve AMC and antimicrobial usage (AMU) data at country level

 Support One Health Approach among human, livestock and environment
sectors

In the animal health sector, the Fleming Fund Country Grant is providing support for
strengthening AMR surveillance in food animals, diagnostic harmonization, capacity
development of animal health laboratories, field surveys for AMU and Knowledge
Attitudes Practices (KAP) surveys. To cope up with the scope in animal health sector,
Fleming Fund through AHC office, M/o NFS&R has identified

 Two National Reference Points

o National Veterinary Laboratories (NVL), Islamabad
o National Reference Laboratory for Poultry Diseases (NRLPD), NARC
Islamabad
 9 Sentinel Labs from all provinces of Pakistan

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 Agriculture

To better coordinate AMR and AMU activities in the animal health sector alongside
Human Health, (M/o NFS&R) has notified the establishment of the AMR Coordination
Unit (AMR-CU) at the Animal Husbandry Commissioner (AHC) office.

i. Support Development and Piloting Pakistan Animal Identification and

Traceability System (PAITS). This project is under execution with the technical
and financial support of FAO-Pakistan. Pakistan currently does not have a reliable
animal identification and traceability system to manage livestock identification and
movements in the country. Lack of such a system poses significant challenges for
Pakistan, specifically in export of livestock and their products, in the wake of
limited resources and capacity of the animal health services to deliver effective
animal health programmes. The project will be used as pilot demonstrations in
cattle and buffaloes in limited geographic region in smallholder livestock farming
and selected feedlot fattening dairy farms.
ii. National PPR Eradication Programme: Under this project, efforts will be made
to move Pakistan into stage 3 of the progressive step-wise approach of Office
International des Epizooties (OIE) for PPR eradication in next five years. The total
cost of the project is Rs 1.8 billion.
Enhancement of FMD Control Programme in Pakistan: This project is under
execution in collaboration of Government of Pakistan, JICA and FAO-Pakistan with the
following objectives:
 Reporting of FMD outbreaks by stakeholders (veterinarians, veterinary
assistants, and dairy farmers)

 Awareness of dairy farmers

 Rapid response of FMD outbreaks

Other Policy Measures
M/o NFS&R with its re-defined role under the 18th Constitutional Amendment
undertook the following measures: i) Import of calf milk replacer and cattle fed premix
by the corporate dairy/meat sub sectors at concessional tariff, ii) Import of high yielding
dairy cattle breeds of Holstein Friesian and Jersey for enhanced milk production, iii)
Semen and embryos of high yielding animals for the genetic improvement of indigenous
low producing animals, and iv) Import of high quality feed stuff/micro ingredients for
improving the nutritional quality of animals & poultry feed.

V. Fisheries
Fisheries sector plays significant role in the economy and food security of the country
and it reduces pressure on demand for mutton, beef, and poultry. It is also considered to
be an important source of livelihood for the coastal inhabitants. Apart from marine
fisheries, inland fisheries (based in rivers, lakes, dams, etc.) are also a very important
activity throughout the country. Fisheries share in GDP although very little, but it adds
substantially to the national income through export earnings.

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Pakistan Economic Survey 2021-22

During FY2022 (July-March), total fish production recorded at 696.0 thousand MT

(marine: 468 thousand MT and inland: 228 thousand MT) witnessing an increase of 0.8
percent over same period of last year’s fish production of 690.6 thousand MT (marine:
465.2 thousand MT and inland: 225.4 thousand MT).
During FY2022 (July-March), a total of 116.514 thousand MT of fish and fishery
preparation amounting US$ 310 million were exported. Pakistan’s major buyers are
China, Thailand, Malaysia, Middle East, Sri Lanka, and Japan. Several initiatives are being
taken by federal and provincial fisheries departments which include, inter alia,
strengthening of extension services, introduction of new fishing methodologies,
development of value-added products, enhancement of per capita consumption of fish,
up gradation of socio-economic conditions of the fishermen community and a review of
Deep-Sea Fishing Policy of 2018.

Since resumption of exports to the EU countries different consignments of fish, cuttlefish

and shrimps have been sent by 02 companies to the EU, after 100 percent laboratory
analysis at EU borders. For further enhancement of seafood export to EU countries, six
more processing plants are in pipeline and their cases for approval are under process
with EU authorities. Export of seafood to EU countries is given in Table 2.25:
Table 2.25: Export of Seafood to EU Countries FY2022 (July-March)
Commodity / Fish Squids Shrimp Crabs Total
Quantity Value Quantity Value Quantity Value Quantity Value Quantity Value
Country
(MT) $ (000) (MT) $ (000) (MT) $ (000) (MT) $ (000) (MT) $ (000)
Belgium 318 786 - - 1,425 6,892 - - 1,743 7,678
Netherlands 85 206 - - 45 186 - - 130 392
Spain - - 96 203 - - - - 96 203
UK 999 3,923 - - 250 856 5 18 1,254 4,797
Total 1,402 4,915 96 203 1,720 7,934 5 18 3,223 13,070
Source: Marine Fisheries Department

Way Forward:
The available potential in agriculture sector needs to be exploited to boost economic
growth, job creation and encourging country’s exports. For this purpose synchronization
of programmes, reforming of institutions and encouraging public-private partnership,
simplification of laws and investment reforms is the need of the hour. As federal and
provincial investment should be based on their mandate/role in agriculture sector and
national issues could be co-financed. Effective mechanisation stands vital to enahnce
productivity in this sector.

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