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PM announces Rs 1,800 billion agriculture package to facilitate farmers in getting loans

PM announces Rs 1,800 billion agriculture package to facilitate farmers in getting loans
October 31, 2022 Web Desk

ISLAMABAD (APP) - Prime Minister Shehbaz Sharif Monday announced a special package of Rs 1,800 billion to promote the agriculture sector and provide farmers, particularly in the flood-hit areas free seeds, inexpensive loans and to bring down prices of fertilizers and electricity for tube-wells.

Announcing the agriculture package while addressing a press conference, he said that the economic progress of Pakistan was dependent on the agriculture sector and Rs 1,800 billion spending on agriculture would be an increase of Rs 400 billion as compared to the last year.

"The minister would ensure the delivery of loans to the farmers. Rs 10.6 billion were allocated for small farmers across the country while Rs eight billion would be given to the small farmers in the flood-affected areas.

"In the rural areas, unemployed youth in the agriculture sector will be given loans of Rs 50 billion and Rs 6.5 billion will be given for subsidy to waive off mark up on these loans."

He said that the prices of DAP would be reduced by Rs 2,500 per bag, resulting in a benefit of Rs 58 billion to the farmers. "The price of a DAP bag would come down to Rs 11,250. The prices of DAP have been brought down after tough negotiations with the fertilizer sector. DAP had an important role in increasing the per acre yield of crops."

Shehbaz Sharif said that 1.2 million bags of certified seeds worth Rs 13.20 billion would be distributed among the farmers and the federal and provincial governments will share the funds required for it.

"The landless farmers in the flood affected areas will be given Rs five billion. Small and medium enterprises working in the agriculture sector would also be given loans of Rs 10 billion for modernization schemes," he added.

He said that second hand five year old tractors will be imported with a relaxation of 50 percent in duties and the government would also encourage entry of new tractor manufacturers by decreasing duty on completely knocked down kits from 35 percent to 15 percent.

He informed that half a million tonnes of urea will be imported at a reduced price. "200,000 tonnes of urea had already been imported and the government will give subsidy of Rs 30 billion to give the fertilizer to the farmers at a lower cost," he added.

He said that the government would import 2.6 million tonnes of wheat. ”One million tonnes was already imported while 1.6 million tonnes of wheat will be imported soon.”

The prime minister said one million tubewells in the country were run on electricity and under the new package the government would provide interest-free loans for 300,000 tubewells for their solarization so that farmers would get free of cost electricity.

"Despite all the difficulties, the government had decided to fix electricity cost at Rs 13 per unit for these tubewells and it would also pay subsidy of Rs 43 billion to help the farmers in paying the loans for the solarization," he noted.

He said that financial assistance of Rs 88 billion was already given to the flood-affected people, adding Rs 70 billion were given through the Benazir Income Support Programme while the remaining amount was given for material help like food, tents and blankets through the National Disaster Management Authority (NDMA).