The agricultural sector of Pakistan is the most important component of the country's economy, accounting for 22.4% of GDP and 36.4% of the employment structure of the population. The Pakistani agriculture plays a key role in maintaining the food security of the state and ensures the inflow of foreign currency into the country through export supplies.
Vast territories of Pakistan are occupied by arable land (especially fertile lands along the Indus River) and pastures, the domestic production of a number of agricultural goods is able to fully meet the existing demand. However, the low level of disposable incomes of the population entails the absence in Pakistan of one of the key elements of food security — the economic accessibility of food. In addition, climate change has a serious negative impact on the development of agriculture in Pakistan, especially the concomitant increase in the number of natural disasters. In particular, as a result of the unprecedented flood in 2022, a significant part of the country's territory and population were affected, and the agricultural sector suffered significant material losses, which further aggravated the problems of poverty and malnutrition among the least well-off Pakistanis.
The most common agricultural crop in Pakistan is sugar cane. In the 2022/23 agricultural year, the volume of its production in the country amounted to 91.1 million tons, which is 2.8% more than in 2021/22. Sugar cane is the main raw material for the Pakistani sugar industry, the second largest agricultural sector after textiles. In addition, Pakistan is a major producer of grain crops. The main part of the production of this type of product falls on wheat, 27.6 million tons were grown in 2022/23, which is 5.4% more than in 2021/22. Corn production increased by 6.9% to 10.2 million tons in 2022/23. At the same time, the volume of rice grown decreased by 21.5% to 7.3 million tons in 2022/23 MG. In the category of vegetables, root crops and tubers, potato production occupies the largest share — 8.3 million tons in 2022/23, which is 4.8% more than in 2021/22. Fruits are also grown in large quantities in the country. Thus, in 2022/23, about 1.8 million tons of mangoes and 1.6 million tons of oranges were produced.
The livestock sector of Pakistan is the main branch of the country's agriculture, which accounts for most of the value added produced by the agriculture. The Government of Pakistan considers animal husbandry as one of the most promising sources of economic growth and a key tool for ensuring food security. Thus, beef is already among the main export positions of the country.
Pakistan's dairy farming sector produces mainly buffalo and cow's milk. The volumes of production indicators for this type of product are growing annually, and by 2023/23 they reached the level of 40.7 million tons of buffalo milk and 25.2 million tons of cow's milk, which is 3.0% and 4.1% more than in 2021/22, respectively. Pakistan, along with India and the United States, is one of the three largest raw milk producing countries.
The poultry sector is the most developed in Pakistan. In 2022/23, poultry meat production in the country amounted to 2.2 million tons, which is 10.0% more than in 2021/22. In addition, 1.3 million tons of beef and 1.2 million tons of buffalo meat were produced in 2022/23.
Fishing is also an important source of income for a large part of the Pakistani population. The Indus River flows through the country, one of the most abundant rivers in South Asia, rich in aquatic biological resources. Marine fishing is also developed in the Indian Ocean, on the coast of which the main fishing ports of Pakistan are located — Karachi, Gwadar and Pasni. The annual production of fish and seafood is about 0.8 million tons. A significant part of the manufactured products is exported abroad, seafood is among the top 10 most demanded goods in the world market of Pakistan.
In 2022, Pakistan imported agricultural products worth 9.36 billion US dollars, which is 0.5% lower than in 2021. In 2018-2022, the volume of imports of agricultural products of the country grew annually by an average of 11.2%. In the coming years, a further increase in the country's population is expected, which in turn will lead to an increase in the consumption of basic foodstuffs.
In 2018, the Government of Pakistan lowered the quota for wheat exports, as a result of which the country exported a record 1.7 million tons of this type of product. However, in 2020, against the background of significant population growth, the country's domestic production could not meet the growing consumption, which is why Pakistan was forced to reduce the duty on wheat imports, resuming its purchases on foreign markets.
A noticeable increase in imports of agricultural products of Pakistan in value terms in 2021-2022 is associated with an increase in purchases of palm oil and soybeans, world prices for which have increased significantly during this period.
In the structure of imports of agricultural products of Pakistan in value terms in 2022, palm oil was the main purchased product (41.2%). Soybeans (11.0%) and wheat (10.0%) also entered the top 3 imported agricultural products. The top 10 imported products accounted for 81.6% of the total imports of agricultural products of Pakistan in value terms.
In 2022, the volume of purchases of dried chickpeas increased most noticeably (by 3.2 times compared to 2021 or by 216.2 million US dollars), soybean oil (by 3.7 times or by 177.5 million US dollars) and fresh bulb vegetables (by 78.4% or by 71.9 million US dollars). At the same time, imports of peas (by 52.2% or 187.1 million US dollars), soybeans (by 25.2% or 346.4 million US dollars) and rapeseed seeds (by 71.7% or 355.5 million US dollars) decreased.
In 2022, Indonesia was the main supplier of agricultural products to Pakistan, which accounted for 38.3% of import in value terms. Brazil (8.8%) and Kenya (5.8%) also entered the top 3 exporting countries. Russia took the 6th place in the rating with the volume of supplies of agricultural products in the amount of 424.9 million US dollars. In total, the top 10 supplier countries accounted for 78.8% of import in value terms to Pakistan.
Exports of agricultural products to Pakistan from Indonesia increased most significantly in 2022 (by 15.3% compared to 2021 or 475.0 million US dollars) and Russia (by 2 times or by 212.8 million US dollars). Indonesia increased palm oil supplies by 16.0% (from 3.0 billion US dollars to 3.5 billion US dollars), Russia increased wheat exports by 3.1 times (from 99.4 million US dollars to 311.7 million US dollars).
At the same time, exports of agricultural products from Brazil (by 17.1% or 168.6 million US dollars), Canada (by 40.4% or 141.0 million US dollars) and the United States (by 22.9% or 132.0 million US dollars) decreased. Brazil and the United States reduced the supply of soybeans — Brazil from 914.3 million US dollars to 700.6 million US dollars, the United States — from 426.0 million US dollars to 324.2 million US dollars. Canada has reduced exports of rapeseed seeds from US$ 209.5 million to US$ 31.7 million.
In 2022, the volume of exports of agricultural products from Pakistan amounted to 6.2 billion US dollars, an increase of 12.6% compared to the level of 2021. In 2018-2022, the volume of imports of agricultural products of the country grew annually by an average of 3.2%. The most noticeable increase in exports in value terms was noted in 2018 — then, in order to minimize the cost of storing large stocks of wheat, the Government of Pakistan decided to increase exports of this crop.
As a result, in 2018 Pakistan supplied about 1.7 million tons of wheat to foreign markets. In the future, domestic production could not meet the needs of the Pakistani market against the background of population growth, which is why the country switched from being a net exporter of wheat to a net importer.
The need to ensure the country's food security is the main reason for the decline in exports in 2020. To meet domestic demand, Pakistan stopped exporting wheat and wheat flour, and temporarily limited sugar supplies.
The basis of exports of agricultural products of Pakistan in 2022 was rice (37.9% of export in value terms), alcohol (9.5%), as well as beef and edible offal of cattle (5.4%).
In total, the top 10 exported types of products accounted for 71.7% of the country's agricultural exports in value terms.
Exports of alcohol increased most noticeably in 2022 (by 47.4% or by 190.0 million US dollars), corn (by 2.5 times or by 157.2 million US dollars) and potatoes (by 92.2% or by 107.2 million US dollars). At the same time, exports of sesame seeds decreased (by 31.0% or by 66.7 million US dollars).
The main importers of agricultural products of Pakistan in 2022 included China (13.1% of the value of exports), the United Arab Emirates (12.0%) and Afghanistan (9.4%).
In total, the ten largest importers accounted for 60.6% of Pakistan's agricultural exports. Compare to 2021, the UAE (by 35.7% or 197.1 million US dollars), the Netherlands (by 2.4 times or 195.4 million US dollars) and Afghanistan (by 24.8% or 116.3 million US dollars) demonstrated the most significant increase in the volume of purchases of agricultural products of Pakistan. The UAE increased rice purchases (by 94.2%, from 122.8 million US dollars to 238.5 million US dollars), the Netherlands increased alcohol imports 4.7 times (from 54.9 million US dollars to 258.9 million US dollars), Afghanistan imported more rice (by 47.2%, from 121.5 million US dollars up to 178.8 million US dollars) and other food products (2.3 times, from 33.0 million US dollars to 76.3 million US dollars). USA).
At the same time, China's imports of Pakistani products seriously decreased (by 15.8% or by 152.9 million US dollars), the country reduced purchases of sesame seeds by 35.2% (from 148.8 million US dollars to 96.5 million US dollars) and other dried fruits by 54.7% (from 65.7 million US dollars to 29.8 million US dollars).
