The Role of Soybean In Economy Of Pakistan

Soybean is not yet a major contributor to the economy of Pakistan, its potential for growth and expansion in the country is significant.

The Role of Soybean In Economy Of Pakistan

Soybean production in Pakistan has the potential to boost the economy by providing a source of income for farmers and creating employment opportunities. While, it is not a major crop in Pakistan and its cultivation is limited to certain regions of the country, such as Punjab, Sindh, and Balochistan. However, soybean cultivation and production have been increasing in recent years due to the growing demand for soybean meal as an animal feed ingredient.

Soybean, the leguminous vegetable, mainly grows in tropical, subtropical and temperate climates. Originally, Soybean came from China and now growing in worldwide. It is a very beneficial crop, mostly used as food for humans as well as for animals, as sustainable fuel and as cooking oil.

Soybean cultivation in Pakistan is still relatively small compared to other crops such as wheat, rice, and sugarcane. However, soybean is gaining importance as a cash crop due to its potential for export and as a source of protein for the animal feed industry. The export of soybean and its by-products can also generate foreign exchange for the country.

In addition, soybean cultivation can also contribute to sustainable agriculture practices in Pakistan by providing an alternative crop rotation option for farmers and improving soil fertility. The crop is known for its ability to fix atmospheric nitrogen in the soil, reducing the need for synthetic fertilizers.

Overall, while soybean is not yet a major contributor to the economy of Pakistan, its potential for growth and expansion in the country is significant.

AREA (_) AND PRODUCTION (_) OF SOYBEAN IN PAKISTAN:

Area and production of soybean in Pakistan from (1970- 2015) is given below:

The value of exports of commodity group 1201 “Soya beans, whether, or not broken” from Pakistan totalled $206 thousand in 2021. Sales of commodity group 1201 from Pakistan went up by 401% compared to 2020.

Top export destinations of Soybean from Pakistan in 2021:

  • Oman – share of 91% (187 thousand US$)
  • Afghanistan with a share of 8.05% (16.5 thousand US$)
  • Canada – 1.79 thousand US$

The value of imports of commodity group 1201 “Soya beans, whether, or not broken” to Pakistan totalled $1.36 billion in 2021. Sales of commodity group 1201 to Pakistan went up by 62% compared to 2020.

Top trading partners (import of “Soya beans, whether, or not broken”) of Pakistan in 2021:

  • Brazil, share of 66% (911 million US$)
  • USA with a share of 31% (424 million US$)
  • Canada with a share of 2.21% (30 million US$)
  • Belize – 1.19 million US$
  • Ukraine – 619 thousand US$
  • China – 470 US$

In 2020,the total world production for soybeans was 353,463,735 metric tonnes, up 5.1% from 336,329,392 tonnes (in 2019). Brazil was the largest producer, accounting for 34% of world production, followed by the United States at 32%.

In conclusion, soybean import plays a significant role in the economy of Pakistan, as it meets the requirements of the poultry industry, while soybean exports are limited, with the country mainly exporting soybean meal to neighbouring countries.

We should improve the production of soybean, so it can contribute more to our economy, and we should export soybean to other countries rather than import.

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