As the government of Pakistan is in the process of preparing the next year’s national budget, the economic managers must closely evaluate the performance, challenges and opportunities in the various industrial and economic sectors, to devise result-oriented reforms, policies and incentives for each sector.
Since Pakistan’s economy is primarily dependent on high agricultural productivity, which can enrich all the other important industries, it is advisable to extend all possible incentives, technological support and financial assistance to this critical sector, for the benefit of the whole nation.
Many learned experts and vibrant associations like; ‘Fertiliser Manufacturers of Pakistan Advisory Council’ (FMPAC), Punjab Agriculture Commission (PAC) and the ‘Pakistan Kissan Ittehad’ (PKI) have suggested that: Since the country’s economy is facing difficult times, Pakistan must consider introducing a Tax-Free regime for the agricultural sector, in the next year’s budget, to accelerate growth and prosperity.
The Pakistani farmers and fertiliser producers are facing a host of issues due to excessive taxation, while there is no support-price mechanism for any important crop, except ‘Wheat’. There is an urgent need to abolish the heavy rate of “General Sales Tax” (GST) and “Gas Infrastructure Development Cess” (GIDC) on the input and output of all types of fertilisers. It is necessary to announce support prices for major crops like; Cotton, rice, potato and corn in Pakistan.
Other agrarian economies in the region, including India, have already given substantial tax-relief to their farmers. Fertiliser prices in India have also been reduced. These measures have significantly brought down the cost of cultivation in this neighbouring country, to achieve more sustainability, better crop-yields and stable prices.
Hence, the government of Pakistan should discourage the import and trade of many agricultural commodities from India, where 27 major crops enjoy support-prices. So, this can make the Pakistani crops non-competitive in the international market. Pakistan must announce support-price mechanism for; Cotton crop at Rs 4,000/- Per 40 KG bale, Rice at Rs 2,200 per 40 KG, Potato at Rs 2,500 and Corn at Rs 1,500.
If immediate steps are not taken to address the economic worries of the farmer community, Pakistan’s agricultural and fertiliser sectors may face some serious crises and the country’s economy will suffer for very long time.
Ammar Muzaffar
Lahore
