Following the devastation caused by the floods in Pakistan, especially in the agriculture sector, Prime Minister Shehbaz Sharif has announced a much-awaited special package of Rs 1,800 billion to promote the sector.
This is good a good move considering the extensive loss and damage that has taken place in the agricultural sector and how farmers have been demanding greater assistance from the state.
The new financial package that has been announced has been increased by Rs 400 billion when compared to last year. In addition to this, the government will also be waiving the markup of small farmers’ loans who have been impacted by the floods which will cost up to Rs 10.6 billion.
There are a number of new measures in this package as well. For the first time in rural areas, the government is planning to provide Rs 50 billion in loans to those youth who would be seeking employment in the agriculture sector. This is an important measure that should be supplemented by training programs for youth.
Apart from this, there are other relief measures such as reducing the prices of di-ammonium phosphate (DAP), providing certified seeds, importing urea and wheat, and providing electricity at a fixed cost of Rs 13 per unit.
The PM is right in stating the country’s economic development depends heavily on the agricultural sector, and providing such assistance will only help the sector realise its potential and help us reduce our import bill going forward. However, this should not be a one-off package and assistance will have to be provided on a consistent basis as the slow-onset events following the floods (land degradation, droughts, increased temperatures, etc.) will start becoming more apparent.
The Economic Coordination Committee (ECC) has also okayed imported of 300,000 MT of wheat from Russia to address the wheat shortage issue.
Food insecurity and resource scarcity are very real threats because of climate change and we will have to invest in adaptation and mitigation measures that will help the agriculture sector to cope and progress.
