Pakistan, June 4 -- ISLAMABAD - The Planning Commission has admitted that faulty federal and provincial policies led to a sharp 13.5% decline in major crop production this fiscal year. This drop may increase food imports next year and put pressure on the country's foreign exchange reserves.

According to a working paper prepared for the 2025-26 federal budget, the Commission blamed the agricultural sector's weak performance for the lower-than-targeted GDP growth. Pakistan's GDP grew by only 2.7% against the target of 3.6%, mainly due to contraction in key commodity-producing sectors.

Unfavorable weather, low rainfall, rising input costs, and frequent policy changes were cited as key reasons behind the drop in crop output. Last year, the ...