The Islamabad Chamber of Commerce and Industry (ICCI) has welcomed the incentives announced in the budget 2016-17 for the revival of the agriculture sector and termed them highly positive initiatives that would help in boosting agricultural productivity and improving GDP growth of the country.
ICCI Acting President Sheikh Pervez Ahmed said that agriculture sector was playing a key role in the economic development of the country, however, during FY 2016, this sector posted negative growth due to which the growth of overall economy remained below target. He said agriculture sector was a vital component of Pakistan’s economy, as it provided raw materials to many industries, contributed over 19 per cent to GDP growth, absorbed over 42 per cent of the country’s total labour force and made useful contributions to poverty alleviation in the country. Therefore, it was the need of the hour that the government took strong measures for the revival of this important sector of the economy.
He hoped that the new incentives announced in the budget would give the necessary boost to agricultural productivity. He said that significant reduction in the prices of fertilisers, withdrawal of 7 per cent duty on pesticides, lowering off-peak rate of electricity for agricultural tube wells from Rs 8.85 to Rs 5.35 per unit were laudable measures to turn around the dwindling productivity of agriculture sector.
Sheikh Pervez Ahmed said reducing GST on imported and locally manufactured tractors from 10 per cent to 5 per cent, abolishing customs duty on agricultural machinery including harvesters, planters and laser land levellers were appreciable measures. Similarly, exempting pesticides from sales tax and lowering GST on urea fertiliser from existing 17 per cent to 5 per cent were also highly appreciable measures to bring the agriculture sector out of troubles, he added.
