ISLAMABAD: 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.

Last year, the government announced a lucrative minimum support price (MSP) for wheat, but the Punjab government subsequently withdrew its support for farmers, leaving them at the mercy of middlemen and market forces. The federal........

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