‘Flawed’ govt policies cause sharp contraction in major crops

The Planning Commission has conceded that policy decisions and government measures at both the federal and provincial levels have caused a substantial contraction of 13.5 per cent in major crops this fiscal year, which may lead to increased food imports next year at the expense of precious foreign exchange. In a working paper for the federal budget 2025-26, the Planning Commission also attributed the lower-than-targeted GDP growth to a poor performance of the agriculture sector. “GDP growth for FY25 is recorded at 2.7pc against the target of 3.6pc, primarily due to a massive contraction in key commodity-producing sectors, including important crops, which witnessed a 13.5pc contraction due to adverse weather conditions, reduced rainfall, input challenges, and policy shift”, the Planning Commission candidly placed on record.