The standing committee of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Horticulture said on Saturday that Pakistan had another two years for agriculture subsidies as per the WTO decision and could make the agricultural sector to make effective contribution in the gross domestic product by taking benefit of it.
Chairman Standing Committee of FPCCI on Horticulture Ahmad Jawad, in a statement, said that it was principally decided at the recent moot of World Trade Organisation (WTO) in Nairobi that developing nations may end agriculture subsidy by the end of 2018. So, being a developing nation Pakistan had another two years for making the agriculture sector which was claimed the back bone of the country’s economy, he added.
The commerce minister, he said, had stated in his statement after the WTO meeting that Pakistan’s agriculture exports would have a level playing field as the WTO has eliminated immediately agriculture export subsidies by developed countries.
Jawad said in the WTO moot, it was resolved that developed countries agreed to stop the subsidies immediately and developing nations must follow by the end of 2018, as the Nairobi Package contained a series of six ministerial decisions on agriculture, cotton and issues related to least-developed countries.
He said the decisions included a commitment to abolish export subsidies for farm exports. “It is a significant development which will improve the global trading environment. But without giving required infrastructure across the country and formulating soft policies for agriculture exports, it seemed to be difficult that Pakistan might get benefit from it, he added.
Jawad said Pakistan had an immense potential in agriculture and horticulture sector. “We are the 13th largest producer of Kinnow, 6th largest producer in mangoes, 5th largest in dates, one of the biggest producers of cotton, sugar cane, rice and still many other key products like potatoes, onions, wheat etc with the combination of unique taste due to favourable soil conditions. But we fail to prepare a proper agriculture policy covering production to value addition and competitive exports.”
He suggested that the government might announce special tariff concession for the agriculture sector and give basic subsidy at least in the form of seeds and fertilizers at optimum level in the upcoming budget at the bracket up to 10 acres land across the country, including Gligit-Baltistan, on all crops.
Zarai Taraqiati Bank Ltd, the largest agri lending bank, should be directed to finance agro-based industries so that value-addition environment might initiate accordingly in order to strengthen the agriculture exports, he added.
