ISLAMABAD: The Ministry of National Food Security and Research (MNFS&R) is working on implementation of agriculture fiscal package of Rs14.361 billion to boost agriculture sector in the country.

According to an official statement, the Economic Coordination Committee (ECC) approved technical supplementary grant of Rs14.361 billion, which consists of Rs6.861 billion for mark-up subsidy on all the agri-loans disbursed by the Zarai Taraqiati Bank Limited (ZTBL) during 2020-2021 to the farmers of 12.5 acres of land holding and pass both as collateral.

It said the package also included Rs6 billion for subsidy of cotton pesticide and Rs1.5 billion for sales tax subsidy to locally-manufactured tractors.

According to the ministry, subsidy on markup of agro loan and tractors does not involve any cash transactions and would be provided through books and tax adjustment by the State Bank of Pakistan (SBP) and the Federal Board of Revenue (FBR) respectively. This subsidy scheme is simple and transparent, so that it could benefit farmers of all provinces.

Copyright Business Recorder, 2020

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