ISLAMABAD: The federal government will collaborate with the provinces at all levels for successful implementation of the Rs37 billion Agricultural Fiscal Package, Minister for National Food Security and Research Syed Fakhr Imam said during a review meeting on Wednesday.
The pro-farmer package includes subsidy on fertilisers, cotton seed and white-fly pesticides. It also includes reduced bank markup on agricultural loans as well as sales tax subsidy on locally manufactured tractors.
Under the agriculture package, subsidy to the tune of approximately Rs37bn is offered to farmers on the purchase of fertilisers. Similarly, diminution in markup of agriculture loans to farmers at the total cost of Rs8.8bn and subsidy on cotton seed at a cost of Rs2.3bn and white fly pesticides at Rs6bn were approved.
The package would also include Rs. 2.5bn subsidy on sales tax on the locally-manufactured tractors for a period of one year. All banks in the scheme, including Zarai Taraqiati Bank Limited, will enhance the outreach of farmers with focus on subsistence farmers with a land holding of 12.5 acres.
“The federal government has made available Rs5bn for the deserving vulnerable segments of farmers and now implementation requirements have to be met by the provincial governments. Pakistan has an ability to encourage organic fertilisers that play an important role in sustaining the agriculture system,” Imam said.
Published in Dawn, June 4th, 2020