‘Smart subsidy’ suggested for small farmers

LAHORE: Measures such as smart subsidy can not only substantially increase the income of small subsistence farmers but can also go a long way towards catalysing growth of the agriculture sector in Pakistan, said a high official of Pakistan’s largest fertiliser manufacturer.

“This measure (smart subsidy) will help uplift livelihoods of millions of Pakistanis while ensuring food security with affordable prices,” Engro Fertilisers Chief Financial Officer Imran Ahmed told a group of journalists on Wednesday.

In Pakistan, landholding is mostly concentrated in the hands of 10% rich landlords, who own over 50% of farmland in the country. The remaining 90% of farmers have very small landholdings, which highlights the significance of small and subsistence farmers in Pakistan.

In that scenario, he said, the subsidy given by the government on the urea produced with the help of imported LNG was directly and disproportionately benefitting the large farm owners and landlords whose agricultural income had remained untaxed. 

Published in The Express Tribune, October 24^th, 2019.

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