T HE Finance Bill 2017-2018 seems quite promising for the agro-economy sector compared with the time-barred incentives offered by the government last year. One example is the Kissan Package, which was offered with a positive intent by the government for improving the plight of the farming community but could not be of much help to the agri-sector owing to market instability and the somewhat inappropriate timing of the announcement of subsidy. As a result, the government`s intention to strengthen the agri-sector could not materialise.
Another example is the Complex Subsidy Reimbursement Mechanism, which has further burdened the fertilizer sector by causing serious cash-flow problems making all those repent who wanted to help the government in its initiative.
Such unfulfilled promises have resulted in a serious trust deficit between the government and other stakeholders. The government needs to come up with certain corrective measures to ensure a long-termrelief to the agri-sector through farmerfriendly policies.
It is suggested that the government consider the following suggestions by agri-experts: i) Reduction in GST on inputs. 11) Providing relief in terms of reducing the cost ofproduction ofinputs.
iii) Easing GIDC to alleviate the long-deprived farming community of an additional burden.
Moreover, the government should come up with corrective measures in the approved budget to reduce the cost of input so that fertilizer prices may be made competitive in the international market.
Adnan Ali Mughal Quaid-e-Azam University, Islamabad