PM announces Rs341 billion relief package for farmers
Relief package will help ease the process of obtaining loans for farmers
Prime Minister Nawaz Sharif waves at the audience during Kisan Convention in Islamabad on September 14, 2015. PHOTO: PML-N
Farmers will receive Rs341 billion in grants, subsidies and loan advances from the government, Prime Minister Nawaz Sharif announced on Tuesday, in a bid to spur sluggish growth in one of the country's main economic sectors.
The new schemes represent the government's largest economic development programme for the agricultural sector since it was voted into office in 2013.
The funds will be provided through immediate cash grants and subsidies on agricultural inputs worth Rs140 billion, while loan advances worth Rs185 billion will also be made and disbursements begin this year, he said.
"The conditions of the agricultural sector do not inspire confidence," PM Nawaz said as he announced the new package at a farmers' convention in Islamabad.
The reforms and grants will primarily target small farmers, classified as those with holdings of 12.5 acres or less.
Read: PM likely to announce agriculture relief package
The package includes immediate cash grants for rice and cotton farmers, cuts in fertiliser prices, and a government scheme to pay insurance premiums for farmers who cannot afford them.
It also includes collateral guarantees for loans, and tax breaks for the dairy, poultry and fish farming sectors.
Agriculture accounts for roughly 23.8 per cent of Pakistan's gross domestic product, according to the country's central bank.
Wheat, cotton, rice, sugarcane and maize being its main crops.
PM Nawaz went on to add that the government has reduced all taxes on the import of modern agriculture machinery from 43 per cent to only 9 per cent. “The sales tax has been reduced from 17 per cent to only 7 per cent while turnover tax on rice has been removed.”
Read: Relief now has a different meaning for farmers
Further, the prime minister announced special exemption of income tax for halal meat producers for four years, saying the sector possess immense opportunities for exports.
Earlier, the prime minister chaired a cabinet meeting to deliberate on the agriculture relief package. The relief package is part of government's efforts to ensure growth in all sectors of economy and it is expected to ensure stability in prices of agricultural products.
“We have deliberated on how to increase the agriculture production and provide relief to the farmers,” PM Nawaz said, adding that apart from relief package the government will consider more ways, including modern technology, to provide relief to farmers.
The announcement of agriculture relief package is a duty of the government and a lawful right to the farmers of the country, he added.
Construction of dams
The prime minister revealed that the federal government has already started working on the construction of several dams, including Diamer-Bhasha, Dasu and Bunji dams, to provide ample amounts of water and power to the nation.
Read: Returns on produce: Farmers protest for support prices raise
“We have already purchased land for the biggest ever Diamer-Bhasha Dam with a cost of Rs101 billion,” the premier said. At least 4,320 megawatt of electricity will be generated while 6.4 million acres of water will be provided for agriculture purposes by the country’s largest dam, he added.
The new schemes represent the government's largest economic development programme for the agricultural sector since it was voted into office in 2013.
The funds will be provided through immediate cash grants and subsidies on agricultural inputs worth Rs140 billion, while loan advances worth Rs185 billion will also be made and disbursements begin this year, he said.
"The conditions of the agricultural sector do not inspire confidence," PM Nawaz said as he announced the new package at a farmers' convention in Islamabad.
The reforms and grants will primarily target small farmers, classified as those with holdings of 12.5 acres or less.
Read: PM likely to announce agriculture relief package
The package includes immediate cash grants for rice and cotton farmers, cuts in fertiliser prices, and a government scheme to pay insurance premiums for farmers who cannot afford them.
It also includes collateral guarantees for loans, and tax breaks for the dairy, poultry and fish farming sectors.
Agriculture accounts for roughly 23.8 per cent of Pakistan's gross domestic product, according to the country's central bank.
Wheat, cotton, rice, sugarcane and maize being its main crops.
PM Nawaz went on to add that the government has reduced all taxes on the import of modern agriculture machinery from 43 per cent to only 9 per cent. “The sales tax has been reduced from 17 per cent to only 7 per cent while turnover tax on rice has been removed.”
Read: Relief now has a different meaning for farmers
Further, the prime minister announced special exemption of income tax for halal meat producers for four years, saying the sector possess immense opportunities for exports.
Earlier, the prime minister chaired a cabinet meeting to deliberate on the agriculture relief package. The relief package is part of government's efforts to ensure growth in all sectors of economy and it is expected to ensure stability in prices of agricultural products.
“We have deliberated on how to increase the agriculture production and provide relief to the farmers,” PM Nawaz said, adding that apart from relief package the government will consider more ways, including modern technology, to provide relief to farmers.
The announcement of agriculture relief package is a duty of the government and a lawful right to the farmers of the country, he added.
Construction of dams
The prime minister revealed that the federal government has already started working on the construction of several dams, including Diamer-Bhasha, Dasu and Bunji dams, to provide ample amounts of water and power to the nation.
Read: Returns on produce: Farmers protest for support prices raise
“We have already purchased land for the biggest ever Diamer-Bhasha Dam with a cost of Rs101 billion,” the premier said. At least 4,320 megawatt of electricity will be generated while 6.4 million acres of water will be provided for agriculture purposes by the country’s largest dam, he added.