PM Nawaz announces relief package of over Rs341bn for farmers
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ISLAMABAD: Prime Minister Nawaz Sharif on Tuesday announced a relief package of over Rs341 billion for farmers, which was earlier approved by his cabinet.
Addressing farmers at a ceremony held at Kisan Convention in the federal capital, the prime minister said the relief package has been designed in four parts, with the first part being direct financial cooperation for farmers, second being relief in agricultural costs, third being provision of agricultural loans and fourth being facilitating the process of obtaining loans.
In wake of superfluous production of rice, the premier announced that small rice farmers would be provided Rs5,000 per acre cash support.
Referring to the plight of cotton growers, the premier said floods and rains have inflicted heavy losses on cotton farmers, Radio Pakistan reported.
Therefore, he said, the government has decided to give cash assistance of Rs5,000 to cotton growers as well.
Some Rs40bn will be spent for the provision of cash grants to rice and cotton farmers. This cost will be jointly borne by federal and provincial governments, the premier announced.
Nawaz said reduction in prices of commodities and increase in the prices of agriculture inputs has raised the cost of production.
He said in order to reduce costs of fertilisers, the government is setting up a fund of Rs20bn, as a result of which the cost of phosphate and potassium fertilisers per sack is being cut by at least Rs500.
With a view that farmers should have the facility of insurance for their fields but since most small farmers cannot afford to pay insurance premium, the government has decided to pay premium for the farmers, the prime minister announced. At a cost of Rs2.5bn, this facility will benefit some 700,000 farmers in case their fields are damaged, he said.
Interest-free loans will be provided to farmers who own 12.5 acres or less land for the installation of solar-powered tube-wells or conversion of existing tube-wells to solar system, Nawaz said.
Earlier, addressing the convention, Minister for National Food Security Sikandar Hayat Bosan said it is the priority of the government to decrease prices of agriculture inputs.
He said steps are afoot to enhance per acre agriculture yield.
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Comments (70) Closed
Sep 15, 2015 01:00pm
Huge corruption in the name of farmers is going to take place, I alert
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Sep 15, 2015 01:03pm
Well done IK for playing an effective opposition. Government is forced to act in favor of neglected agriculture sector.
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Sep 15, 2015 01:04pm
I think they have started their final phase of corruptions. Never know when re-elections are announced.
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Sep 15, 2015 01:05pm
Pre-poll rigging for local bodies elections!
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Sep 15, 2015 01:05pm
Government should impose tax to big farmers whose are landlords.
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Sep 15, 2015 01:06pm
Ghost farmers, be ready to get your paychecks.
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Sep 15, 2015 01:06pm
Why cash payments; direct purchase of votes in the upcoming local body elections. Shows corrupt mindset of the rulers!
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Sep 15, 2015 01:07pm
Relief packages to farmer of Rs 341 billion? Is it not a changed name of subsidy that has been withdrawn on the demands of IMF?
What is meant by the superfluous production of rice? Is there not a similar superfluous production of wheat?
What would you say about huge superfluous import of tea?
Obvious reason is the superfluous economic projections made by the planning division of the finance.
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Sep 15, 2015 01:07pm
Failed to understand these cash supports or packages and that too of such a huge amount.
Financial assistance is needed by poor farmers and labour, who in case of a weak crop, doesn't get much from their landlords. But mostly are landless, they end up getting nothing with corruption making matters worse.
Almost everything lands up in hands of landlords which probably have other sources of livelihood too and can survive two - three bad crops easily. The problem is that only these landlords are treated as Farmers by Govt.
I agree that agriculture is the most important activity in subcontinent and food production and others are the basic necessity.
Instead of doling out cash, govt. should provide some subsidy on urea, free seeds etc. very easy loans, better irrigation facilities and support for buying machinery.
Govt. do nothing or doles out cash, when recession leaves many young people unemployed. Aren't they contributing to economy.
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Sep 15, 2015 01:24pm
Finally.....Time for relief...not for the farmers.....but for the government officials. It has been one year since the government officers of agriculture dept dint buy a new car. This is the right time!
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Sep 15, 2015 01:26pm
As long as inputs are reduced the farming sector would keep on going down. This sector needs reforms than charity. Reforms in reducing the margins of Middleman, Pesticide companies , and Urea manufacturers. Availability of quality seeds. Nothing has been done on things to be done. As usual the government putting real issues under the carpet and doling out money to get elected again . SAD
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Sep 15, 2015 01:26pm
The PM is buying candidates of PTI by bribing farmers in hundreds of billion tax payers' money while at the same time exempting them from taxation.
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Sep 15, 2015 01:28pm
Structural changes require for viabality of farming ,income distribution like tranfering the urban income towards rural income and targeted subsidy is only option otherwhise another mega corruption scandal will emerge at cost of poor masses
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Sep 15, 2015 01:29pm
I don't know what is the reason but this givt. is doing far better than our expectations and as days are passing people are praising the performance of this govt. now it is the duty of opposition to not create hurdles in the way of progress.
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Sep 15, 2015 01:30pm
What is this? Financial help? I do not think this will help, The need is to lower down the input costs, DAP and Urea costs, Electricity Bills for their tube wells should be subsidized. Another way of giving bribe for upcoming LG elections.
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Sep 15, 2015 01:34pm
Our Politicians have suddenly realized there is a huge vote bank out there that hasn't been exploited , looted and plundered yet !
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Sep 15, 2015 01:44pm
Now Imran should also announce some releief paacke for KPK farmers specially Hazara.
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Sep 15, 2015 01:50pm
Well done Mr PM. Country was in a mess and things don't change over night. You are taking mature approach to resolve issues. We are with you.
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Sep 15, 2015 01:50pm
Most of gentlemen making comments are not aware about plight of small farmers. The declining commodity prices and increase in input prices necessitates some relief to maintain national food security. Critics must understand that Pakistan despite much less population was net importer of food grains under PL 480 for decades. Now despite population aroun d
200 million ,we are food secure and surplus.latest we produced 25 million tons wheat,7million tons rice and 5 million tons maize. Credit to farmers ,research/extension and of course to Govt. thus farmers need support at this testing time due to commodity glut in international market. Farmers must use inputs efficiently to reduce cost of production.
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Sep 15, 2015 01:51pm
How much of this money will actually reach the farmers, given the rampant corruption in Pakistan?
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Sep 15, 2015 01:58pm
looking at this, I urge Imran Khan, the only hope, to run a massive campaign against ECP if they pretend to be sleeping on this pre-poll rigging. IK and all other parties must boycott elections for this open rigging by PMLN
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Sep 15, 2015 02:07pm
If the government is sincere in helping the farmers, it should stop controlling the price of their produce as well as of the agricultural inputs such as the fertilizer etc. It should not waste public funds on subsidies. The age of subsidies should be over because the public can not afford it. For check on market prices of the farm products, all custom duties and surcharges need to be removed from import of the farm products for the benefit of the consuming public. Bottom line, if government gets out of the way and stays away, every one will be fine. It is the unnecessary government intervention which creates problems in the first place.
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Sep 15, 2015 02:09pm
@Khi92 dear PM if by any chance your gov is not into corruption then putting suddeny huge amount wont be feasible and beneficial ..i wonder till when gov will be using our money to buy votes like this..have you started preparing for next terms.beware the terms wont finish but human does.
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Sep 15, 2015 02:12pm
Total waste of money as it will be either embezzled or go to the feudal lords but will never reach the small farmers. SBP has already set a target of over Rs500 billion lending to farmers which is enough. On one hand the tax payers are being squeezed and on the other hand money is being distributed to those who are not ready to pay tax.
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Sep 15, 2015 02:14pm
How is he going to pay for this? More loans and make the country bankrupt then it already is. NS should realise that these handouts will not win him more votes.
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Sep 15, 2015 02:15pm
Thank you IK for the Kissan Convention.
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Sep 15, 2015 02:20pm
Another attempt to loot tax payer's money. Doubt they will reach to the farmer. Another Big Question is - Where is the money?
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Sep 15, 2015 02:21pm
what a relief package by the way!
5000 per acre what a relief for the farmers.....!when one packet of ammonium phosphate is priced approximately 4300.
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Sep 15, 2015 02:28pm
Nice going Nawaz !! Thumbs up. This will boost morals of farmers. Pakistan salutes the performances delivered. only overcome Nandipur and that is it you will be the most successful politician ever. PIA & Railways have turned into a profitable venture after disastrous years for them in PPP where PIA & Railways faced billions of losses, now railways are on time and also they are profitable. Terrorism is eradicated, development and other matters have put you on top of list. Others are now trying to combine so that they can get some support, but for these Combos one message is that to perform that is the only way to get votes. Take lesson from Nawaz.
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Sep 15, 2015 02:28pm
Certainly, this a good news that PM has announced the relief package for the farmers. But this package would not be fruitful for the farmers.
At present in the province of Sindh, the Cotton is sold by the farmers in the market but the rate of 40kg is low. It is production cost is very high.
Therefore, both the provincial and federal government should take remarkable step to do justice with farmers of Sindh province.
Above all, when the federal government give any relief to the public. It must get in confidence to all of the provinces because provinces know better than the federal government.
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Sep 15, 2015 02:46pm
Thanks to IK!!! Otherwise PM would have had never taken any steps to provide relief to farmers.
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Sep 15, 2015 02:51pm
Really appreciate the efforts of the PM. Hope this will give a boost to our exports
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Sep 15, 2015 02:53pm
i better go and buy some barren agri land ;)
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Sep 15, 2015 02:55pm
Aaa, our land record is up side down, most of the agri land is on Gardawari whose record is even more complicated and messed up... I am just confused that how can this Govt who lacks decorum and administration will come up any arrangement through which they will distribute such large sum.... Or this is another MUNAZAM corruption arrangement....
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Sep 15, 2015 03:09pm
what about some taxes too? are the farmers above the law
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Sep 15, 2015 03:15pm
Hope this will be transparent without corruption in the process when it comes to implementation of such package to farmers which are truly backbone to our country and it's economy.
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Sep 15, 2015 03:22pm
The Punjab Farmers will take the best benefit of this scheme the KPK will follow the Sindh and Baluchistan will be doomed in the hands of corruption...because the corruption in Punjab and KPK is the lowest due to Shahbaz Sharif and Imran Khan.I live
abroad from last 48 years but visit Pakistan regularly...there is great development taking place in Punjab and KPK only because of less corruption and a watch over it.I wish that the other Provinces also have a Shahbaz Sharif.
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Sep 15, 2015 03:24pm
What should we name this? vote politics or pressure of Bilawal Bhutto Zardari, PPP chairman.
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Sep 15, 2015 03:24pm
another "NANDIPUR" and "JINNAH SOLAR" drama.
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Sep 15, 2015 03:35pm
A relief package for himself and his agricultural tycoon buddies.
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Sep 15, 2015 03:50pm
Every agricultural graduate must be given tractors, threshers and ploughs and where possible government land to turn Pakistan fully self sufficient in agricultural products.
Also, capacity building of all those involved in agriculture from farm to market will help improve the value chains of every single agricultural product.
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Sep 15, 2015 03:56pm
@Muhammad Ramzan
General public is as corrupt as the rule,rs,,,,musharaf was doing far better then previous n present setup,,,at that moment masses turned to sreets behind CJ,,,,,hungry for democracy,,,,now they need a general again lol.
Confused lot. Public dnt believe in what it preech.
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Sep 15, 2015 03:58pm
Supreme court and Election Commission should intervene and stop the government from disbursement this huge amount. This is pure and open pre-poll rigging. IK we are with you please come on the streets to protest.
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Sep 15, 2015 04:00pm
He said "hum paisa bananay nahi ayey " these words suits to a Pm?
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Sep 15, 2015 04:01pm
Loans? Relief?
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Sep 15, 2015 04:03pm
@Saagar : If this approach of doling out money for a superficial glory and not devising a workable policy for the farmers to ensure their sustainability is a mature approach from your standards, then God Bless Pakistan!
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Sep 15, 2015 04:49pm
Bate for Local Body elections!
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Sep 15, 2015 04:52pm
I find no relief in this package. A farmer who have loss of 50000 rp / acre how can 5000 accomodate that. farmer use mainly urea on which no relief. If you really want to give relief then make supportive prices of crops and increase export of them. Control prices and quality of commodities. exempt the taxes on commodities minimise the commision.
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Sep 15, 2015 04:59pm
give credit where it is due
he is doing a decent job and we should be supporting. PPP ruined Pak he is bringing it back to normal. don't mind a little corruption if something gets done
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Sep 15, 2015 05:04pm
There is no doubt that there is much need to invest for small farmers especially in the face of climate change and other factor. However, government should have announced these subsidies both small holders and landless who are cultivating the land.
I wonder why wheat which is staple food of Pakistan left out. Despite past history that number of time riots erupted in Pakistan because of wheat shortage. There are many studies in Pakistan which concluded that wheat is not profitable cultivation in Pakistan and need to reduce its cost of Production.
Supporting insurance is good step for small farmers and not only benefit the small farmers but also halve the poverty given the process is transparent.
Last, I could not understand the package is only for this "election year" or this will continue....?
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Sep 15, 2015 05:28pm
@Dilectus this was in the works since May. Imran Khan talked about it last week for the first time. And he only talked about it not even bringing it up in the NA or trying to pass a bill there. Good job ON ON for adressing a problem instead of talking about it.
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Sep 15, 2015 05:32pm
Dishing out cash is no solution rather it will create many more problems like corruption and making farmers look like a destitute. The measures should have been reduction in prices of inputs,fuel and transportation. On other hand a base price for crops must be raised by 15 percent so that it becomes profitable for farmers to produce . How can farmers survive when price of their produce remains static , input price keep rising which leads to diminishing return per acre. If government wants to ensure food security then solid steps have to be taken . By giving cash do not reduce our proud farmers as paupers.
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Sep 15, 2015 05:38pm
Nothing new is going to come from these leaders. you will hear another mega corruption in the future.
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Sep 15, 2015 05:42pm
A lot of people want to make sure that IK does not become the PM. For it to happen, those people have to give up their olden ways (e.g., indulging in corruption). That is what is happening now; good governance is creeping in. Win win for Pakistan. Only the sad part is that IK's dream may have to take a back seat. On a side note, farmers are heavily subsidized across the world - example, Japan, U.S., etc.
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Sep 15, 2015 06:02pm
@ZAHEER political stability should be the first priority for any country..Once achieved , progress will follow. Chaos and dharna environment never attracts investments etc. Steps taken by this gov along with army are mature and heading toward political stability. Give time some time. As i said before nothing happens over night.
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Sep 15, 2015 06:04pm
Pressure is on. Every politician has to prove his worth now. It looks like all these actions by rangers have shaken up the system.
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Sep 15, 2015 06:16pm
They are at it again:you scratch my back i will scratch yours. This political game will now be played in the fields and villages after having played it in educational institutions and cities. The agriculture contributing 25 percent of GDP is exempted from paying taxes.Fertilizers is subsidized. The very word of agriculture reform is anathema. Loan write off is rule rather than exception. And now this enticing package. Where the money will come from and who will be authorized to dole out public funds. Great another avenue of corruption has been spotted and paved.
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Sep 15, 2015 06:27pm
Saying that PML-N a has an agricultural policy is a bit of overstatement. They did have one during its second term, articulated by Mr. Sartaj Aziz.However it never got implemented. Their apologists can claim that in their last two stints in power the time at their disposal was too short to formulate a meaningful agricultural policy.Interestingly their main rival, PPP also had to suffer the same fate but they were very clear in their approach towards agriculture in all their three terms.Main features of their agricultural policy were reliance on setting the prices right and reversing the sectoral terms of trade in favour of agriculture by rationalizing the prices of agricultural inputs and outputs, provision of fairly generous subsidies and aggressive procurement of surplus food grains whenever needed.
These policies did have their spin off effects on all sectors of the economy. The mushroom growth of affluent middle class in the country.
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Sep 15, 2015 07:00pm
Give a man a fish and feed him for a day, teach a man to fish and feed him for life.
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Sep 15, 2015 07:48pm
Really, this government is committed for farmers. If the schemes are implemented accurately, the condition of the farmers will be improved.
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Sep 15, 2015 07:48pm
All guys criticising this package don't know the A B C of farming. I'm a large scale farmer and don't fit in any category given above. But I know how helpful it could be for farmers. My question is implimention. Do we have the infrastructure?
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Sep 15, 2015 08:12pm
It's just an eye wash. We have sown rice at high price of inputs like Ploughing, fertilisers and pesticides. Now the crop is "bumper", middlemen are exploiting growers. We need support price for Rice. If support price is not given all rice growers will be in loss. Also, package is given in consideration of growers of Pubjab.
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Sep 15, 2015 08:18pm
Govt is giving financial assistance and giving loans but they are not increasing price of cotton and rice. Cotton crop in Southern Punjab is completely destroyed and govt should have announced support price for the remaining produce.
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Sep 15, 2015 08:22pm
This NS guy, I am telling you. He not even once talked about farmers before Imran Khan raised the issue, and now he goes ahead and starts giving them billions to look at par with IK or better.
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Sep 15, 2015 08:34pm
Cash payments irrespective of size of a farm means corruption.
We dont see decrease in the prices of commodities in market. Prices of atta, rice and pulses are going up unchecked.
Government should take measure in increasing productions of agriculture produce per acre instead of spoon feeding. Big land lords getting Rs 5000/- per acre without paying income tax will be be billion rs over night.
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Sep 15, 2015 08:54pm
This package will never reach to the deserving. But in the pockets of the corrupt elite.
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Sep 15, 2015 09:40pm
The Loans will never be repaid by the so called farmers. It is just the wastage of resources
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Sep 15, 2015 10:00pm
This is all about upcoming local bodies election campaign.
Hope this all is done in true letter and spirit.
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Sep 15, 2015 10:50pm
@Khi92
PTI and its supporters are having nightmares of defeat in coming polls and so crying for postponement of polls.
Shame!
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Sep 16, 2015 09:38am
PMLn government is very smart in announcing various packages for gaining populous support of people . The new relief package has been announced when local bodies elections are going to hold shortly . It raises many question why this time has been chosen to provide relief to farmers ? Surely it will be getting for political gain in local bodies election by distributing amount . From this huge amount will be arranged amounting to Rs 341 billion ? Is there any provision has been kept in budget or will be arranged from banks of public sector which are already in crisis . What will be mode of distribution of funds ? If it will be through political allies recommendations then it will be open gate of corruption and allegations upon PMLn leadership who is already under fire .
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