ISLAMABAD: Prime Minister Shahbaz Sharif announced a relief package worth billions of rupees for farmers after the devastating floods badly affected the agricultural sector.
Addressing a press conference along with federal ministers and members of the government’s economic team, the prime minister said, “I have come to terms with the fact that the development of the country is directly proportional to the development of Pakistan’s agricultural sector.”
The unprecedented flooding caused by historic monsoon rains swept away roads, crops, infrastructure and bridges, killing more than 1,700 people and affecting more than 33 million, 15% of the country’s 220 million population. Is.
Final estimates put the damage from Pakistan’s recent deadly floods at more than $30 billion, with the Ministry of Planning’s Post-Disaster Needs Assessment (PDNA) report saying reconstruction needs are more than $16 billion.
According to the report, agriculture, food and livestock lost $3.7 billion (Rs 800 billion).
Climate-induced floods have devastated agriculture across Pakistan, resulting in reduced production of major crops. Sugarcane production has decreased by 8%, rice by 40.6% and cotton by 24.6%.
The Prime Minister said that for the current financial year, the government will provide loans worth Rs 1800 billion to farmers, which is four times more than the previous year.
“As you all know, the current finance minister [Ishaq Dar] is quite strict […] and he will ensure that all the money is provided to the farmers,” highlighted Prime Minister Shehbaz. Hoy said that commercial banks are reluctant to give loans. Small farmers and entrepreneurs and looking for safe investment.
The Prime Minister said that the mark-up of loans taken by farmers belonging to flood-affected areas has been waived and the government has allocated about Rs 11 billion for this.
He said that the center and small provinces will also provide more than 8 billion rupees to small farmers in flood-affected areas. It will also provide loans.
Loans to Tenant Farmers
He said that loans to the youth will be provided at a markup below the market rate and the government will allocate around Rs 6.5 billion for the project.
The Prime Minister announced interest-free loans for tenant farmers in flood-affected areas. Prime Minister Shehbaz said that a subsidy of 5 billion rupees has been allocated for these loans.
In addition, the government has increased the production index unit (PIU) value from Rs 4,000 to Rs 10,000 for availing loans for agricultural purposes.
He said that he will promote Small and Medium Enterprises (SMEs) in agriculture as Rs 10 billion has been allocated for the modernization scheme of SMEs in the agriculture sector.
Subsidy on Urea, DAP
Sharing more details, the Prime Minister announced that after intense negotiations with the government, fertilizer plants have agreed to a reduction of Rs 2,500 per bag on Diammonium Phosphate (DAP) – DAP Bag Now available for Rs 11,250. market.
Earlier DAP bag was selling for around 14 thousand rupees.
The Prime Minister said that 1.2 lakh bags of certified wheat seeds will be provided free of cost to the farmers in the flood-affected areas in collaboration with the provinces. He further said that 50% of the Rs 13.20 billion will be provided by the Centre.
He further disclosed that the government has planned to import 500,000 tonnes of urea out of which 200,000 tonnes have already reached Pakistan.
The Prime Minister praised the Industries Minister and his team for negotiating a deal that helped the government save $100 per tonne – as urea was initially priced at $600 per tonne under the government-to-government agreement. was available on tin but due to his continuous efforts. The authorities concerned brought the price down to $500 per ton.
To strengthen Pakistan’s agriculture sector, the government has also decided to allocate Rs 30 billion as a subsidy on urea so that small farmers can get fertilizer at cheap rates.
Government’s Decision to Import Second-Hand Tractors
The Prime Minister expressed regret that locally manufactured tractors in Pakistan could not be exported due to the ban. Due to which the price of the tractor has also increased for the common farmers.
I along with Dar and other concerned authorities tried to end the monopoly of the tractor industry. However, the stakeholders immediately refused to cooperate with the government,” said Prime Minister Shehbaz, adding that keeping the situation in mind, the government has decided to import second-hand tractors.
The Prime Minister said that the government, out of its responsibility, has decided to import up to five years old second-hand tractors (with proper certification) to help farmers who cannot afford locally manufactured tractors. are
He clarified that if the tractor industry had cooperated with the government, they would not have taken this decision which is expected to harm the local industry. The Prime Minister also announced that importers of five-year-old second-hand tractors will also be given 50 percent duty rebate, three-year-old tractors will get 36 percent rebate, and concessional rates will be calculated accordingly.
Government’s Decision to Import Another 16 Lakh Tonnes of Wheat
The prime minister said that wheat was being imported earlier due to below average production, but due to the devastation caused by floods, Pakistan will still need to import wheat.
He said that the government has decided to import 1.6 million tonnes of wheat, taking the total to 2.6 million tonnes, of which 1 million tonnes have arrived.
Explaining why he did not allow the private sector to import wheat, he said that the government was trying to save every dollar and provide relief to the people due to which all wheat imports had to be reduced. The deals were government-to-government.
Interest Free Loans for Tubewell Owners
Regarding relief in electricity prices, he said that the government has decided to provide interest-free loans to the 300,000 tubewell owners currently operating in Pakistan. There is a plan to solarize these tube wells.
He explained that the farmer will not have to pay the electricity bill and will only have to pay the installment while the interest amount will be paid by the government.
The prime minister said the government has decided to levy a fixed cost of Rs 13 per unit as “immediate” relief to farmers – which means a subsidy of Rs 43 billion.
