There are numerous challenges that producers of all commodities in Pakistan face, chief among them: the improving,yet still fragile, security situation; erratic power supply; lack of availability of finance and vulnerability to extreme weather events.Nevertheless, the government has taken some positive interventionist steps to improve the availability of higher-quality seeds forrice, wheat and corn, which should raise yields over the medium term. It has also taken steps to ease tariffs and taxes on key inputs.Recent positive developments in the country's energy sector, if sustained, could be beneficial for cotton and rice producers inparticular. Our expectation of rising prices for rice, grains and cotton (all of which saw an upwards revisions in our price forecasts inthis update) out to the end of our forecast period in 2022 also provides some grounds for optimism regarding exports. Morepositivity comes from favourable weather conditions for growth, which have helped us upgrade our forecasts for rice,wheat and corn production as well as for rice and wheat consumption since our last quarterly update.
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