PTI govt extends loan waiver for farmers of tribal districts

A food ration scheme will also be introduced for erstwhile Fata and Pata


Irshad Ansari December 08, 2019

ISLAMABAD: The federal government has approved writing off loans owed by the farmers of the erstwhile Federally Administered Tribal Areas (Fata) and Provincially Administered Tribal Areas (Pata) between 2009 and 2012 by extending an existing relief package.

The step has been taken on the recommendation of the Senate Standing Committee on States and Frontier Regions.

To write off the loans worth Rs275 million, the government has decided to use the Rs1.17 billion funds in the State Bank set aside under the package.

In addition, a food ration scheme would be introduced for the erstwhile Fata and Pata at the earliest.

As per documents available with The Express Tribune, the committee in its meeting on January 10 this year had proposed that that the State Bank letter issued on February 2, 2011 – on writing off loans in Malakand, Swat, Buner and Chitral districts under the government’s fiscal relief package -- should be applied to all of the erstwhile Fata and Pata and the scope of the package be extended from 2009 to 2012.

Under the package, all debts owed by the farmers of erstwhile Fata and Pata should written off as they were not in a position to repay them because of the militancy and the army operation against terrorists there.

Senate panel seeks waiver of agri loans for ex-FATA farmers

In a letter dated July 4, 2019, the State Bank wrote that the federal government had given it Rs5.26 billion under the financial aid package to waive off the loans.

It further read that a sum of Rs275 million was needed for the relief package’s extension. Of the 5.26 billion allocated earlier, Rs4.08 billion has been used and the remaining Rs1.17 billion remains with the State Bank.

The extension of the relief package will benefit the citizens of Bajaur, Khyber, Kurram, Orakzai, North Waziristan, South Waziristan, Mohmand, Malakand, Swat, Buner, Shangla, Lower Dir, Malakand and Chitral.

The previous government had approved exemption from income tax on profits and gains of existing businesses conducted by individuals of the erstwhile Fata and Pata for five years.

It had approved exemption from sales tax for the retailers to facilitate general consumers. Domestic consumers of electricity would be exempted from sales tax.

Non-customs duty-paid vehicles would be allowed to be used in Fata and Pata for five years ending June 30, 2023. However, these vehicles will not be allowed to cross over to other areas of the country.

On the expiry of five years, vehicles will be regularised on payment of duty and taxes.

There was also exemption from all types of withholding taxes, except for the withholding tax on salary.

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