The Federal Budget 2003-04 has totally ignored the agricultural sector and its requirements. It is an irony that the agrarian economy has always been a victim of official neglect. No one has bothered to look into the problems faced by this sector which supports more than 60 per cent of the population, and contributes around 25 per cent in the GDP.
In a post-budget discussion by an Islamabad-based think tank, a former government official made humorous, yet thought-provoking statement. He said, “in 2001-02 the negative growth in agriculture was attributed to unfavourable weather conditions, while a growth rate of 4 per cent is being credited to government policies”.
Farming community is caught in the problems of water shortage, unpredictable weather conditions, and lack infrastructure, and adding to this are unbearable costs of inputs. Amazingly, the word “Kisan” could not find a place in the finance minister’s speech, what to say of looking into their sufferings.
Majority of farmers use seeds from their own yield for sowing different cash crops. This is because the recommended seeds are either short in supply or are too, costly. Resultantly the yield is not improving and may show decrease. The budget is totally silent on this front.
Chemical fertilizers are used worldwide to enhance production but in Pakistan these are beyond the reach of a common grower. There is 17 per cent GST on it along with substantial increase in the price of natural gas — while gas is used as a raw material. Only few can afford to use chemical fertilizers. Moreover, crop diseases are quite rampant in our region. Though a number of pesticides are available but are too expensive for our farming community — courtesy to various government taxes.
Though, there are advises to make use of low interest rates available at 4-6 per cent in the market. But on the contrary, farming community is being charged 14-16 per cent mark-up on the credit taken by them.
Despite all this, the agriculture sector was able to grow at a good rate during 2002-03 providing enough support to the overall GDP growth. But this could not capture the attention of our financial wizards, who are bent upon squeezing, no matter what the cost is — human or social.
The farmers’ demand to remove the GST from fertilizers and pesticides, ever-worsening water crisis, the storage, marketing and sale of produce were not taken into account in the new budget, let alone devising any mechanism to resolve the problems. Interestingly, the finance minister’s budget speech was devoid of any word for the farming community made in the Parliament, wherein majority of the newly elected members have agricultural background. Yet he received applause from them.
The growth of industrial sector, undoubtedly, is vital for the country’s development but we must not forget that more than three fourth of our exports are agriculture based. If exports pick up then it is because of a better cotton crop. Can this trend survive without rejuvenating agriculture? Moreover, the targets of poverty reduction and unemployment cannot be achieved till due attention is paid to agriculture.
In the budget session of the National Assembly — perhaps the shortest one in the history of the country in contest to debate — the finance minister was heard announcing some steps aimed at winning over the farmers, big landlords in particular. But reduction in the prices of “bulldozers” will not make any dent. Only a comprehensive policy can revive the agriculture sector and reduce the miseries of farmers. The finance minister hopes to achieve growth level of 6 per cent in the next three years. Isn’t it day-dreaming keeping in view the treatment being meted out to this sector? The question is not hard to answer.