ISLAMABAD, Pakistan: Prime Minister Shahbaz Sharif on Monday announced a mega Kissan Package under which farmers will be provided subsidized loans worth Rs 1,800 billion.
While announcing the Kissan Package along with the Finance Minister Ishaq Dar, the Interior Minister Rana Sanaullah and the Information Minister Maryam Aurangzeb in Islamabad, the prime minister said that as compared to previous year the increase in these loans is Rs 400 billion.
The prime minister said that to facilitate the farmers, the coalition government will provide a subsidy of over Rs 10 billion to waive off mark-up fee on the loans availed by farmers of flood affected areas.
Shahbaz Sharif said that this mega package also includes loans worth Rs 50 billion for the youth of rural areas that want to invest in agriculture sector.
For this purpose, the government will provide Rs 6.4 billion as a subsidy on mark-up of loans.
Prime Minister Shehbaz Sharif announced Kisaan Package while addressing a press conference in Islamabad. pic.twitter.com/mbB86FYfIv
— Government of Pakistan (@GovtofPakistan) October 31, 2022
The prime minister said that after successful negotiations with the fertilizers producers, the new price of Diammonium Phosphate (DAP) has been fixed to Rs 11,250 per bag.
For this purpose, the government negotiated a subsidy of Rs 2,500 per bag with the fertilizer producers.
The prime minister further said that under the Kissan Package, Rs 5 billion has been fixed to provide subsidy on markup of loans that will be provided to the farmers of flood affected areas.
Moreover, he said that Small and Medium Enterprises (SMEs) will be regularized for investment in the agriculture sector.
The SME’s interested in investment in the agriculture sector will be able to get loans on subsidized rates and for this purpose we have fixed Rs 6.4 billion, the prime minister said. Under their modernization scheme, Rs 10 billion were fixed.
The prime minister said that keeping in view the increased prices of new tractors, the import of used tractors has also been permitted and now the farmers can import second hand tractors up to five years of their manufacture date. The subsidy on the duty of five-year old tractor will be 50 percent while the subsidy on duty fee of three-year old tractor will be 36 percent.
Prime Minister Shahbaz Sharif also said that we have also managed to import 500,000 tons of Urea. He said that the import of 200,000 tons of Urea has been completed while the remaining will be completed soon. He said that for this purpose, we have provided a subsidy of Rs 30 billion.