Multi billion agriculture package approved to provide subsidy to farmers

Multi billion agriculture package approved to provide subsidy to farmers.

Economic Coordination Committee has approved a multi-billion agriculture package during its meeting in Islamabad today.

Multi billion agriculture package approved

Adviser to the Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh presided over the meeting.

The package aims to provide subsidy to farmers on fertilizers and pesticides, reduction in bank mark-up on agriculture loans, and sales tax subsidy on locally manufactured tractors.

Agriculture package is part of the 100 billion rupees earmarked out of the 1,200-billion rupees coronavirus relief package, for the Small and Medium Enterprises and the agriculture sector.

Under the package, govt would offer subsidy to the tune of approximately 37 billion to farmers on the purchase of fertilizers.

The govt would implement subsidy scheme through provinces.

Under it they would disburse the amount through scratch card scheme which Punjab already implementing.

Reduction in mark-up of agriculture loans to farmers at the total cost of 8.8 billion rupees and subsidy on cotton seed at a cost of 2.3 billion rupees and White Fly pesticides at a cost of 6 billion rupees were also approved.

The package would also include 2.5 billion rupees subsidy on sales tax on the locally-manufactured tractors for a period of one year.

The ECC also approved a proposal by the Poverty Alleviation & Social Safety Division for disbursement of the Special Relief Package for the population living along the Line of Control.

GTV