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CHAPTER 3 - AGRICULTURE AND IRRIGATION


A. MAJOR AGRICULTURE ACHIEVEMENTS 1993-1996

 

Given the predominantly agrarian structure of Pakistan's economy, no significant economic growth can be achieved without the commensurate contribution from the agriculture sector. The Peoples Government therefore places strong emphasis on agricultural growth and that was why there was a resurgence of agricultural growth under the Peoples Government as compared with agricultural growth under the Nawaz Government. The Peoples Government had the following successes:

  • There was a handsome positive agriculture growth rate of over 6% per annum in the period as against a negative 15% growth rate in 1992-93 when the Peoples Government took office;

  • In calamity affected areas, relief to small farmers was given on production loans and interest on production loans were waived during 1995-96;

  • An amount of Rs.15 billion was disbursed as credit to farmers through ADBP in 1995-96 as compared to about Rs.10 billion in 1992-93, an increase of 50%;

  • Kisan banking window operations were established at 356 branches of ADBP to provide credit to small farmers. Rs.4.53,925.36 million was disbursed through this scheme during 1995-96;

  • Under Awami Tractor Scheme, 20,000 tractors were provided to farmers at subsidized rate during 1995-96.

  • Seed business was declared an industry to boast seed production and incentives like exemption of custom duty on import of vegetable seeds, duty free import of inbred lines for production of hybrid seeds and reduction in import duty of seed processing machinery and seed testing laboratory equipment were granted.

  • Support prices of important agricultural commodities were increased in 1995-96 to provide incentive to farmers for increasing production.

B. AGRICULTURE AGENDA 1997-2002

 

Apart from the vagaries of the weather, our agriculture is beset by the problems of poor untimely water supplies of contaminated pesticides, non-availability of adequate and timely credit, inadequate infrastructure for farm to market access and extremely poor yields of major crops. Unless a grass root program for alleviation these ills is launched there is no hope for exploiting the fullest potential of country's agriculture sector. The Peoples Government will adopt an agricultural policy to fundamentally restructure the agriculture sector comprising:

  • A grass root program for construction of lined water courses and canals, development of new canals and rehabilitation of the existing canal system to improve water supplies and effect economy in water use;

  • Expeditiously complete large schemes to create a comprehensive drainage system in the country and its extension with a top-to-bottom approach;

  • Introduction of new laws providing severe punishments alongwith an efficient enforcement machinery to check the widespread contamination of pesticides, fertilizer and other agriculture inputs;

  • Ensure greater allocation of credit from ADBP for production activities on a timely basis by strengthening the Kissan window, greater provision of credit from SBP, adequate availability of credit for financing of agriculture implements including tractors;

  • Allow prices of all agriculture crops to be freely determined by market forces; there will be no indirect taxation of agriculture sector by paying less than local market or international prices;

  • Strengthen agriculture research institutions through provisions of greater resources for the purpose of studying the ways for improving yields of all major crops;

  • Establish a massive net-work of farm-to-market roads to improve the access of farmer to the market thereby enabling him to get timely access and better prices from the market;

  • Treat the agricultural sector at par with the industrial sector;

  • Policy incentives to be provided to promote agro-industry in the rural areas to encourage demand led growth and to provide employment opportunities in the rural areas;

  • Spend a percentage of agricultural income tax in the District from where taxes have been collected. This would mobilize resource collection and encourage the agricultural sector to contribute in to the national exchanger;

  • Promote corporate farming to attract national and foreign investment into the agricultural sector;

  • Provide incentives to promote the livestock sector, so that organised livestock farms to be promoted to meet the milk and meat requirements of the country;

  • Initiate incentives and policies to promote exports of high-value agriculture goods like fruit, flowers and vegetables;

  • Introduce crop insurance;

  • Ensure timely payments to farmers who suffer from delayed recoveries of payments for their products;

  • Issue title deeds for agriculture lands so that the farmers does not remain at the mercy of the revenue officials. He should be able to use title deed as collateral and for obtaining credits and other benefits. This will also simplify transfers of land;

  • Develop an oilseed development plan to provide an additional boost to minimise dependence on imported oils;

  • Pursue land reform and distribute Government land among the landless.

 

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