LAHORE: Welcoming the downward revision of diesel prices, Agri Forum Pakistan Chairman Muhammad Ibrahim Mughal has claimed that it will reduce a burden of Rs 200 billion per annum on the farming sector.

Talking to Business Recorder on Saturday, Ibrahim Mughal said that around 5 billion liters of diesel are consumed by the agriculture sector in the country out of total annual consumption of around 14 billion liters of diesel and kerosene oil. This is consumed by 1 to 1.1 million tube wells used in farming and over one million tractors and other agriculture implements. However, he said this reduction is not sufficient as prices should be further brought down.

Mughal was of the view that the country needs to increase its agricultural production by 40-50 percent, increase IT exports, and bring value addition instead of exporting raw cotton or other agriculture and horticulture commodities to bridge the trade deficit.

He said the government should also focus on reducing the cost of fertilizers, and decreasing electricity prices for agricultural tube wells to boost agriculture production. He was of the view that these steps can reduce the fiscal burden on farmers by 800 to 1000 billion rupees.

Copyright Business Recorder, 2022