ISLAMABAD: The Prime Minister Shehbaz Sharif on Monday unveiled around Rs600 billion relief package for the farmers and stated that only agriculture can transform the country’s economy in the shortest possible time and help reduce food imports.
While announcing the relief package for farmers at a press conference, he said that the package was prepared by the coalition government after extensive deliberation to provide relief to the farmers.
He said that under the package, loans worth of Rs1800 billion would be provided to farmers, which would be Rs400 billion more compared to what was disbursed to the farmers last fiscal year.
He said that mark-up of small farmers loans in flood affected is being waived off for which the government has to bear Rs10.6 billion cost, and added that for the first time in rural areas, the government has also decided to provide Rs50 billion loans to those youth which would be seeking employment in agriculture sector. This would cost Rs6.40 billion on account of markup to the government.
He said that the government has been able to get reduction of Rs2500 in DAP price after negotiation with the industry and now DAP would be available at Rs11250 to the farmers instead of Rs14000 per bag.
As a result of reduction in the price of DAP, farmers would get Rs58 billion benefit. In addition, he said that Rs1.2 million bags of certified seeds would be provided to the farmers with equal cost sharing.
He said that Rs13.20 billion has been allocated for this step besides Rs5 billion has been allocated for mark up on loans for landless Haris.
PM concerned at growing food imports
The prime minister said that SMEs would also be promoted in agriculture sector for which Rs10 billion has been earmarked for modernizing their schemes.
The government has decided to import second-hand tractors of up to five years used with 40 percent rebate in duty after the local industry refused to reduce prices of tractors.
He said CKD duty is being reduced for new entrants in tractor industry – if wants to come –from 35 percent to 15 and came hard on already in this business stating that existing tractor industry has failed to achieve 100 percent delegation programme in last 50 years and are still importing parts.
Sharif said that the government has also decided to import 0.5 million tons urea of which 2 lac has already been imported and remaining 3 lac tons would be imported. The government has allocated Rs30 billion subsidy for urea.
“The government is also importing 2.6 million tons of wheat as one million tons has already been imported while it was decided after floods that another 1.6 million tons should be imported to coupe with any kind of shortage,” he added.
He said that the government, as an immediate relief measures to the farmers, has decided to provide the electricity at fixed cost of Rs13 per unit, which would cost Rs43 billion subsidy to the exchequer.
He said that there are 300,000 agriculture tube-wells on electricity in the country and decision has been taken to shift them in phase on solar for which they would be provided interest free loans as mark-up cost would be borne by the government.
Replying to question, he said that FCA has been deferred and former Chief Minister Hamza Shahbaz Sharif had decided to provide Rs100 units electricity free of cost in Punjab, adding “we are asking the provinces to make active provincial price monitoring programme to control the price”.
The prime minister said that economic development heavily depends on agriculture development and only agriculture can transform the economy within six-month by its crops, adding the package would help reduce the food import.
In reply to a question with the country being in the IMF programme, how finance minister would create fiscal space to finance this package, Finance Minister Ishaq Dar said that Rs400 billion is not a revenue item as these loans would be provided by the banks and most of the remaining items are budgeted and funded and there would be no issue with the International Monetary Fund (IMF) in this regard.
Copyright Business Recorder, 2022
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