KARACHI: Former Chairman of FPCCI's Standing Committee on Agriculture and Businessmen Panel Secretary General (Federal), Ahmad Jawad urged the government to indulge meaningful initiatives for the agriculture sector to support economy in ongoing pandemic and may also revised the target of 2.8 percent for the fiscal year of 2020-21 before passing the budget proposal in National assembly.
Jawad said in the light of pandemic where we witnessed a sharp decline in services and industrial sector, in this crises agriculture would be the only hope to uplift the dwindling economy and we expect the government to put extra measures for the agriculture in the budget and set a target of at least 3.5 percent but utter disappointment may visibly be seen after listening the speech.
Though agriculture sector - the backbone of national economy and a major source of employment - recorded a significant growth of 2.67 percent in the outgoing fiscal year 2019-20 compared to a poor 0.58 percent growth in FY19.
The agriculture sector has provided some relief for Pakistan's economy, which has registered a negative growth for the first time in 68 years. Rice production increased 2.9 percent to 7.410 million tonnes and maize crop rose 6 percent to 7.236 million tonnes. Cotton harvest fell 6.9 percent to 9.178 million bales and sugarcane production dropped 0.4 percent to 66.88 million tonnes.
Meanwhile, the production of wheat - being the most important crop - recorded a growth of 2.5 percent to 24.946 million tonnes.
Pakistan's gross domestic product (GDP) is expected to contract for the first time since 1952.
The agriculture sector, which contributes 19.3 percent to the GDP, recorded a year-on-year growth of 2.67 percent in FY20, lower than the target of 3.5 percent, but higher than last year's growth of 0.58 percent and preceding five-year average of 1.8 percent.
"Looking at the breakdown and their respective weights, we expect the government to revise down agriculture growth for FY20," said the analyst in a report.
Nonetheless, according to the economic survey, other crops showed a growth of 4.57 percent mainly due to increase in the production of pulses, oilseeds and vegetables. Cotton ginning declined 4.61 percent due to decrease in the production of cotton crop. Overall, the crops sector recorded a notable growth of 2.98 percent owing to a 2.9 percent increase in the harvest of important crops.
The livestock sector achieved a growth of 2.58 percent. Meanwhile, the fishing sector grew 0.6 percent whereas the forestry sector jumped up 2.29 percent.
In 2019-20, total availability of water for Kharif (summer) crops was recorded at 65.2 million acre feet (maf), an increase of 9.4 percent compared to 59.6 maf in 2018-19.
In the Rabi season 2019-20, total water availability was recorded at 29.2 maf, an increase of 17.7 percent over Rabi 2018-19 but 19.8 percent less than the normal availability of 36.4 maf.
Similarly fertiliser production during July-March FY20 rose 5.8 percent over the same period of last year on the back of additional supply of gas, according to the economic survey. Fertiliser import decreased 20.7 percent.
The government announced a subsidy of Rs37 billion for the fertiliser sector, however, it failed to release the money in the stipulated time, which resulted in a plunge of around 70 percent in fertiliser off take in the last one and a half month. Now Rs200 per bag against urea likely to be increased by the fertiliser companies.
Jawad further stated after 2005-06, there had been a constant decline in the agriculture sector, which meant the country had a huge untapped potential, he emphasised.
"Commodity prices have not been increased except for the adjustment due to rupee depreciation against the US dollar, which has a grave impact on the return on investment made by farmers; the government needs to look into it," he said.
It was expected that government may announce an encouraging policy for the agriculture sector in the federal budget speech so that the sector could make further progress in order to help to take off the economy but the expectations were in vain.
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