PM Shehbaz unveils relief package for agriculture sector

Prime Minister Shehbaz Sharif on Monday announced a fresh relief package for the agriculture sector in a bid to strengthen the country’s economy.

Addressing a press conference, he said that through the 'Kissan Package', the government has devised measures that are in the best interest of Pakistan.

“Pakistan’s economic progress is 100% linked with agriculture growth,” he stressed. “We have decided to offer a package to farmers with a focus on small scale cultivators.”

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He announced that loans worth a total Rs1.8 trillion loans would be disbursed among farmers. Moreover, PM Shehbaz said that markup of small farmers in flood-affected areas of Pakistan will be waived and the government has earmarked Rs10.6 billion for it.

According to him, Rs50 billion have been set aside to provide loans to youngsters who seek employment in agriculture sector in rural areas of Pakistan. In addition, subsidy to the tune of Rs6.4 billion will be given to reduce interest on loans. An additional Rs10 billion have been allocated for modernisation of agriculture sector.

“The di-ammonium phosphate (DAP) fertiliser plays an important role in enhancing per acre yield of crops and it is made through provision of subsidised gas to fertiliser plants,” he said. “We held negotiations with the suppliers and they agreed to reduce the per bag price by Rs2,500 to Rs11,250.”

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He also added that 1.2 million bags of certified wheat seeds will be given to farmers to ensure food security in the country. Pakistan will import 2.6 million tons of wheat in the ongoing fiscal year.

He lamented that banks in Pakistan looked for secure investment and demanded high collateral from farmers and small and medium enterprises (SMEs)

“SMEs are backbone of every progressive economy and I have asked finance minister to penalize the financial institutions that do not facilitate small businesses,” he said.

He underlined that the agriculture sector had the potential to boost the economy within six months.

Tractor industry

PM Shehbaz lamented that tractor manufacturing was a monopoly in Pakistan and added that the government held discussions with tractor makers to reduce prices but they proved to be unfruitful.

He expressed concern that tractor prices were out of reach for a common farmer.

“Till today, tractors could not be imported but now, we permit the import of second-hand tractors up to five years old,” he said. “Moreover 50% rebate on import duty will be allowed on tractors that are exactly 5 years old and 36% on 3-year old tractors.”

He also announced that if a new entrepreneur entered tractor manufacturing segment, the duty on import of completely-knocked down (CKD) units will be reduced from 35% to 15%.

Urea

The PM further said that 500,000 tons of urea has to be import and the government has already received 200,000 tons.

“The suppliers asked for $600 per ton but after negotiations, they reduced it to $500 per ton,” he said.

In addition, Rs30 billion subsidy be allocated for urea as well, he said.

Electricity

The PM stated that farmers in Pakistan had 300,000 electricity-run tubewells.

“We will give such farmers interest free loans to install solar system for their tubewells which will reduce prices,” he said.

Earlier during the day, the PM tweeted "Today I am going to announce a huge package for the revival of agriculture in the country. I believe that only through the development of agriculture can the country face the challenges of food security."