Pakistan Agribusiness Q1 2019
There are numerous challenges that producers of all commodities in Pakistan face, chief among them the improvingyet fragile security situation, erratic power supply, the lack of availability of finance and vulnerability to extreme weather events.Nevertheless, the government has taken some positive steps to improve the availability of high-quality seeds for rice, wheat andcorn, which should raise yields over the medium term. It has also taken steps to ease tariffs and taxes on key inputs. Recent positivedevelopments in the country's energy sector, if sustained, could be beneficial for cotton and rice producers in particular. Ourexpectation of rising prices for rice, grains and cotton out to the end of our forecast period in 2022 also provides some grounds foroptimism regarding exports. Favourable weather conditions for growth have meant an upwards revision to our forecasts for rice,wheat and corn production as well as for rice and wheat consumption.
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