ISLAMABAD: The government is considering a subsidy package for farmers in the upcoming budget, Secretary Finance Tariq Bajwa said on Wednesday.

He was briefing the National Assembly Standing Committee on Finance.

The committee, led by its chairman Qaiser Ahmed Sheikh, was informed that commercial banks were lending liberally to the agriculture sector. A suitable reduction in markup rates on farm loans was discussed amid consensus that it should be equal to mark up rate for industrial loans.

Mr Bajwa said the National Bank of Pakistan (NBP) and Zarai Taraqiati Bank Limited (ZTBL) have already reduced markup rates for the agriculture sector.

State Bank governor Ashraf Mahmood Wathra informed the committee that only 22 per cent of lending to the agriculture sector was made by ZTBL while 78pc was being done by commercial banks.

The free import of fertiliser in the country was also discussed and concern was expressed over urea exports.An official from the Ministry of Industries and Production said the fertiliser sector was exporting urea while the government was supplying gas through the LNG to operate fertiliser units.

An official of the Ministry of National Food Security and Research said the decision to export fertiliser was opposed by the ministry. Mr Sheikh recommended that higher gas prices should be charged from fertiliser plants for the volume of fertiliser that was exported and same should be provided to farmers as subsidy.

Published in Dawn, February 23rd, 2017