ISLAMABAD, June 5: The government has allocated Rs22.259 billion to the agriculture, food, irrigation, forestry and fisheries sector in the 2006-07 budget, which is Rs9.944 billion more compared to last year.
The agriculture sector could only grew by a frustrating 2.5 per cent in the outgoing fiscal year against previous year’s 6.7 per cent, mainly due to adverse weather conditions, non-availability of required water and skyrocketing prices of inputs.
In the budget, the government announced a Rs2.5 billion national agriculture research programme to increase productivity.
The amount is almost half of what was demanded by the Pakistan Agriculture Research Council.
According to the funds distribution mechanism of the finance ministry, 85 per cent of the money allocated for research would go to salaries and other expenditure of the staff and only 13 per cent to actual research. This mechanism is against international funds distribution rules in which 40 per cent of the funds go to research and the remaining to salaries and other expenditure of staff.
The government has announced launching a Rs1 billion programme to revive the sinking poultry industry damaged by the bird flu scare. The amount is nothing compared to estimated Rs10 billion losses suffered by the industry in the first three months of the crisis.
The government will spend Rs5 billion on providing subsided fertilisers to farmers. Fertilisers, now being sold at Rs1,100 per bag, will be provided at Rs500 per bag to farmers.
With almost constant drought conditions in Balochistan, the government has decided to spend Rs22 billion on construction of the Kutchi canal in the province to irrigate lands in Dera Bugti, Naseerabad, Bolan and Jhal Magsi. In the first year, Rs5.50 has been allocated for the project.
Overall, Rs68 billion has been allocated for lining of canals. In 2006-07, 87,000 canals will be lined. Another Rs1 billion will be spent on introducing drip irrigation and sprinklers in the country.
Sales tax has been abolished on dairy products. Customs duty and sales tax have also been removed from dairy and livestock equipment. Duty on packaging materials and products has also been brought down to five per cent from the previous 15 per cent.
The government has decided to invest Rs7.8 billion in the four provinces, Azad Kashmir, Fata and Northern Areas under the Food Security Programme.
Another Rs3.6 billion will be spent on launching the Livestock and Dairy Development Board and Pakistan Dairy Development Company to be led by the private sector. Under this programme, 1,200 model dairy farms and 2,950 animal farms will be established in rural areas.
Duty has also been abolished on import of tractors. Custom duty has been removed from machinery being used in agriculture, horticulture and floriculture. Duty on machinery being used in fisheries has been reduced to five per cent, and there will be no sales tax on such machinery. Custom duty on refrigerated vans has been brought down to 30 per cent from the previous 60 per cent.
NEW PROJECTS: An amount of Rs3.4 billion will be spent on the Land and Water Resource Development project aimed at alleviating poverty. Another half a billion rupees have been allocated for aqua and shrimp farming and Rs611 million for a special programme for the Sanitary and Phythosanitary-Technical Barrier to Trade (SPS-TBT) Management under the World Trade Organisation agreement.
An amount of Rs363.085 million has been allocated for upgrading the Cotton Research Institute in Multan. An animal quarantine station will also be established in Gwadar with a cost of Rs38million. Half a million rupees have been allocated to reduce seafood post harvest losses by improving fish holds of local fishing boats.
