ISLAMABAD, Nov 02 (INP-WealthPK): Prime Minister Shehbaz Sharif has announced an Rs 1800 billion special package to support the agricultural sector and give farmers, especially in flood-affected areas, free seeds, low-interest loans, and lower fertiliser and energy bills for tubewells.
While announcing the package during a press conference, he stated that the agriculture sector was crucial to Pakistan’s economic development and that investing Rs 1800 billion in agriculture represents an increase of Rs 400 billion from the previous year.
He said that Rs 10.6 billion has been set aside for small farmers nationwide, while Rs 8 billion will go to those in flood-affected regions. The finance minister would see to it that loans were handed to the farmers, he added.
The DAP prices will be cut by Rs 2500 per bag, giving farmers a benefit of Rs 58 billion, he said and added, a DAP bag would cost Rs 11,250.
Unemployed young people in the agricultural sector would get loans totalling Rs 50 billion in rural regions, and an additional Rs 6.5 billion will be provided as a subsidy to eliminate the markup on these loans, the prime minister said.
He said that DAP prices are reduced as a result of difficult talks with the fertiliser sector and added that DAP is crucial in raising agricultural yields per acre.
Shehbaz Sharif stated that the federal and provincial governments will share the cost of distributing 1.2 million bags of certified seeds valued at Rs 13.20 billion to farmers.
He added that small and medium enterprises operating in the agriculture sector would also receive loans of Rs 10 billion for modernization initiatives, which would be offered to landless farmers in the flood-affected districts.
He said that duties on used five-year-old tractors would be relaxed by 50% and that the government would promote the entry of new tractor manufacturers by lowering the duty on entirely knocked-down kits from 35% to 15%.
The prime minister said that 500,000 tonnes of urea would be imported at a discount. He stated that the government will provide a subsidy of Rs 30 billion to provide the farmers with fertiliser at a lesser rate despite the fact that 200,000 tonnes of urea have already been imported.
He stated that the government will import 1.6 million tonnes of wheat in the near future, while it has already imported one million tonnes.
According to the prime minister, about one million tubewells in the country are powered by electricity. As part of the new plan, the government will provide 300,000 tubewells interest-free loans to convert them to solar power, providing farmers with free electricity.
Despite all the challenges, he observed, the government has chosen to set the price of energy for these tubewells at Rs 13 per unit and would also provide a subsidy of Rs 43 billion to assist the farmers in repaying their loans for solarization.
The prime minister recalled that the previous government also provided Rs 100 billion in financial assistance to small farmers. He said that the new package will aid in the rehabilitation of farmers, especially those whose standing crops, such as rice, sugarcane, wheat, and dates, grown on four million acres were damaged by the floods.
He stated that the flood victims have already received financial aid totalling Rs 88 billion, of which Rs 70 billion has been provided through the Benazir Income Support Programme. The remaining amount has been provided to the National Disaster Management Authority (NDMA) for the provision of supplies such as food, tents, and blankets, he added.
