NO new support schemes were presented inthelatestbudgetsoastoprovide rehef to the farmers. Despite the protests held by leading f armers` associations (in front of the Parliament House on the day of the budget`s presentation), their demands were largely ignored.
Pakistan Kissan Ittehad (PKI) -a representative body of farmers and several other agricultural experts -had suggested a waiver of General Sales Tax (GST) and Gas Infrastructure Development Cess (GIDC) on fertilizer prices to support the agricultural sector.
Before the new budget was announced, withdrawal of all taxes on farm inputs, soil nutrition and farm machinery was being demanded during the talks held between the f arming-community leaders and policy-makers. But, apparently, all these demands have been bluntly rejected by the federal government.
Previously, the government had considered a major tax proposal to completely abolish the General Sales Tax (GST) on urea and di-ammonium phosphate (DAP) fertilizers in the next financial year, but the budget did not feature any such reforms to support higher yields and f arm productivity.
The reduction of GST and GIDC on both the inputs and outputs was a crucial need.
The introduction of support prices for major crops like cotton, rice, potato and corn was also needed to achieve the desired impact on the economy and to make Pakistan more competitive in the international market.
These decisions must be taken urgently to ensure the economic well-being of the farming community.
The federal government should have encouraged technological advancement of agriculture through bio-tech enhancements, f arm-mechanisation and optimisation of storage and f aster transportation of crops. Over the years, federal policies have surely played a vital partin stardngarevivalprocessfor agriculture. But it needs constant escalation for consistent economic growth and prosperity of farmers.
It is believed that Pakistan`s agricultural sector has the potential to achieve tremendous growth and contribute greatly in increasing our GDP. Hence, the government must extend ef fective support to this sector.
