Pakistan Business Forum Urges Government to Reduce Agricultural Cultivation Costs

Strategic Insights -

The Pakistan Business Forum (PBF) has asked the government to implement measures in the upcoming federal budget to alleviate the financial burden on farmers by reducing the cost of agricultural cultivation. A PBF delegation met with Federal Minister for National Food Security Rana Tanveer Hussain to discuss the federal budget and advocate for targeted relief for the agricultural sector. The delegation emphasized the importance of government support for agriculture to achieve sustainable GDP growth. They urged the government to reduce customs duties on imported machinery used in the cotton ginning sector and eliminate the 18% GST on locally produced cotton.

Key Takeaways:

  • The Pakistan Business Forum (PBF) has requested the government to reduce the cost of agricultural cultivation in the upcoming federal budget by offering tax relief on fertilizers.
  • The PBF delegation met with Federal Minister for National Food Security Rana Tanveer Hussain to discuss the federal budget and advocate for targeted relief for the agricultural sector.
  • The delegation emphasized that sustainable GDP growth is not possible without government support for agriculture.
  • The government has agreed to eliminate the 18% GST on local cotton, including lint and cottonseed, and is considering limiting tax-free imports of yarn and fabric under the Export Facilitation Scheme to support local cotton.
  • The Pakistan Business Forum has recommended implementing new research and seed varieties developed by the Pakistan Agricultural Research Council (PARC) at the district level through local agriculture departments.
  • The government is working to bridge the gap between the national and provincial levels in terms of research and development in agriculture.

Statistics:

  • 18%: The current GST rate on locally produced cotton that the PBF urged the government to eliminate.
  • 10 million: The number of cotton bales that the government aims to produce locally this year.
  • 18% GST on local cotton includes lint and cottonseed that the ministry is actively working to eliminate said Federal Minister Rana Tanveer Hussain

Sources:

  • Pakistan Business Forum (PBF)
  • Federal Minister for National Food Security Rana Tanveer Hussain
  • Pakistan Agricultural Research Council (PARC)