SBP presents 2024-25 performance report; sharp decline seen in agriculture

ISLAMABAD: The Governor of the State Bank of Pakistan (SBP) presented the central bank’s performance report for fiscal year 2024-25 in Parliament, revealing significant challenges in the agriculture sector and its impact on the national economy.

The report showed that agriculture, which had grown by 6.4 per cent in 2024, slowed dramatically to just 1.5 per cent in 2025. Its contribution to real GDP also fell sharply, dropping from 1.5 per cent to 0.4 per cent compared to the previous fiscal year.

The report highlighted an alarming decline in production of all major crops, along with a reduction in the area under cultivation for key crops such as wheat and cotton. Farmers were reportedly unable to increase production due to adverse weather conditions, financial constraints, and uncertainty caused by government policies.

Specifically, the report pointed to the non-procurement of wheat by the government and price determination based on market trends as factors creating uncertainty among farmers. Changes in agricultural policy were also cited as a key reason behind reduced crop output.

Cotton production has faced a continuous decline over the past decade, the report noted, attributing the trend to poor-quality seeds and the effects of climate change.

The central bank’s report underscores the urgent need for policy stability, financial support for farmers, and climate-resilient agricultural practices to revive the sector and secure food production in the coming years.