ISLAMABAD: A meeting of the Economic Coordination Committee (ECC) of the Cabinet has approved Prime Minister’s Package for Rabi wheat crop of Rs1,000 per 50-kg bag subsidy on fertilisers, DAP, P and K fertilisers to support farmers against input cost.
The federal and provincial governments would share the subsidy at the ratio of 70 and 30 percent, decided a meeting of the ECC, presided over by the Adviser to the Prime Minister on Finance, Dr Abdul Hafeez Shaikh on Thursday.
The federal cabinet meeting on 27-10-2020 with the objective to give incentives to the farmers for the upcoming Rabi season constituted a special committee to design the package to reduce the input cost for the farmers with the special intent to increase the production of wheat in the country.
The federal and the provincial governments will share the subsidy in 70 percent and 30 percent ratio.
On weedicides, a chemical weed killer, Rs250 per acre and fungicides Rs150 would be provided by the federal government as subsidy.
The provinces will distribute the subsidy in their already prevalent manner but will be responsible for ensuring transparency.
The Finance Division will directly disburse the federal funds for the subsidy to the provinces on the basis of their share, keeping in view, their system strength and overall outreach.
The Ministry of National Food Security (NFSR) would examine the provinces demand for funds and on its recommendations the Finance Division would transfer the funds to the provinces.
The meeting also decided that the provinces will expand, improve and upgrade their subsidy disbursement systems.
The package would be presented to the next cabinet meeting for approval.
Copyright Business Recorder, 2020