The Pakistan Crops Protection Association (PCPA) on Monday urged the government to frame investment-friendly policies to encourage private sector in establishing basic infrastructure of pesticide industry in the country.
Speaking at a news conference here, PCPA chairman Ejaz Ahmed Chaudhry blamed the government for not giving due weightage to the industry.
"For more than 55 years, governments have not paid any attention towards the sector, which subsequently hinders the industry to flourish in the country," Ejaz said and added that the status quo was maintained by the current regime.
He said that some 10 to 15 years back, the pesticide industry was totally monopolised by multinational companies. But now, he informed journalists, national companies were having 70 percent shares.
"Though it is an encouraging sign, yet there is a lot to be done to encourage local investors from establishing the industry at various levels," the PCPA chairman said.
At the moment, Ejaz said, no pesticide-manufacturing unit was functioning in the country. Only 40 to 50 formulation units were working in the country, which were not enough to meet ever-increasing needs of pesticides in the country, he added.
He said that some 25 years back, the government decided to allow formulation units on the condition of their willingness to convert themselves into proper manufacturing units after five years.
But for one reason or the other, he said, the decision was not implemented, which proved to be a setback for the establishment of pesticide industry's infrastructure.
He said after the implementation of South Asian Free Trade Accord (Safta), Indian pesticides manufacturers, some 20 to 25 units, would penetrate in the country's market, which could hit the local industry adversely.
He castigated the government for delaying the implementation of relief package announced by President General Pervez Musharraf during the farmers' convention on June 10.
Ejaz informed media representative that the government in 2004-05 budget promised to abolish 20 percent import duty on spraying equipment, but decision had not been implemented yet.
He demanded of the government to allow zero duty structure on the import of raw materials for the formulation of pesticides and urged to abolish 20 percent General Sales Tax (GST) on pesticides.
He proposed modification and thorough and strict implementation of laws to control acute adulteration in pesticides.