MANY experts and vibrant associations like the Fertiliser Manufacturers of Pakistan Advisory Council (FMPAC), Punjab Agriculture Commission (PAC) and the Pakistan Kissan Ittehad (PKI) have suggested that since the country’s economy has been facing difficult times, Pakistan must consider introducing a tax-free regime for the agricultural sector to accelerate growth.

Pakistani farmers and fertiliser producers have been facing a host of issues owing to excessive taxation, while there is no support price mechanism for any important crop, except wheat.

There is an urgent need for abolishing the heavy rate of general sales tax (GST) and gas infrastructure development cess (GIDC) on the input and output of all types of fertilisers. It is necessary to announce support prices for major crops like cotton, rice, potato and corn in Pakistan.

Other agrarian economies in the region, including India, have already given substantial tax relief to their farmers. Fertiliser prices in India have also been reduced. These measures have significantly brought down the cost of cultivation in India to achieve more sustainability, better crop yields and stable prices.

The government should discourage the import and trade of many agricultural commodities from India, where 27 major crops enjoy support prices. This can make Pakistani crops non-competitive in the international market. Pakistan must announce a support price mechanism for the cotton crop at Rs4,000 per 40kg bale, rice at Rs2,200 per 40kg, potato at Rs2,500 and corn at Rs1,500.

If immediate steps are not taken to address the worries of the farmer community, Pakistan’s agricultural and fertiliser sectors may face some serious crises and the country’s economy will suffer.

Adnan Ali Mughal
Islamabad

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A DELEGATION of farmers descending on Islamabad to hold a protest the day the federal budget was to be announced reveals that all is not well in this important sector of the country’s economy.

Agriculture plays a central role in Pakistan’s economy, being the second largest sector. It accounts for over 21 per cent of GDP, and is by far the largest employer, absorbing 45 per cent of the country’s total labour force.

The protesting farmers said that the government’s attitude was step-motherly and the authorities had not even bothered to listen to their demands.

Already more than 33 per cent of Pakistanis are below the poverty line. With food becoming ever expensive because of the government’s anti-agriculture policies, even one square meal a day may not be available to the people.

The government should resolve the issues upsetting farmers as quickly as possible.

Ali Nawaz
Islamabad

Published in Dawn, May 29th, 2017