PBF urges PM to reduce tube well tariff

Proposes reduction from Rs10 per unit to affordable rate similar to industrial sector’s

LAHORE:

The Pakistan Business Forum (PBF) has urged Prime Minister Shehbaz Sharif to reduce the agriculture tube well tariff, similar to the recent reduction announced for the industrial sector. In a letter addressed to the prime minister, PBF President Khawaja Mehboobur Rehman commended the decision to lower the electricity tariff for the industrial sector, highlighting its potential to boost the country’s industrial growth and competitiveness.

Rehman highlighted the agriculture sector’s significant contribution to the GDP in the fiscal year 2023-24, despite facing challenges such as high energy costs. He proposed that reducing the agriculture tube well tariff from the current rate of Rs10 per unit to a more affordable rate, akin to the industrial sector’s recent reduction, would provide numerous benefits. These benefits include increased productivity and efficiency, reduced costs, improved profitability, enhanced food security, and greater economic growth.

The PBF believes that this reduction would be a crucial step in supporting the agriculture sector and ensuring the country’s food security. The PBF president further highlighted the potential for the agriculture sector to rejuvenate the economy. He stressed the importance of learning from global leaders and fostering an environment conducive to innovation to unlock the sector’s latent potential.

Currently, Pakistan imports $10 billion worth of edible oils and other food products. A greater focus on agriculture could lead to self-sufficiency and significantly elevate agricultural exports, he said. The PBF cited the example of the Netherlands, which exports over $100 billion worth of agricultural products despite being 19 times smaller than Pakistan. With its favourable climate, Pakistan has the potential to export at least $30 billion worth of agricultural products.

The PBF estimates that the widespread adoption of new technologies in developing agrarian economies can potentially increase farm incomes by up to 200%, leading to poverty reduction and improved livelihoods for millions of Pakistani farmers and households.