PBF urges budget relief for agriculture
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The Pakistan Business Forum (PBF) has urged the government to take concrete measures in the upcoming federal budget to reduce the cost of agricultural cultivation, calling for immediate tax relief on fertilisers to ease the financial burden on farmers.
A PBF delegation, led by Chief Organiser Chaudhry Ahmad Jawad, held a detailed meeting with Federal Minister for National Food Security Rana Tanveer Hussain to discuss the upcoming federal budget and advocate for targeted relief for the agricultural sector.
The delegation emphasised that the federal government still holds the authority to reduce the cost of production for farmers. "Sustainable GDP growth is not possible without government support for agriculture," they stated. The delegation urged the government to eliminate the 18% GST on locally produced cotton and to reduce customs duties on imported machinery used in the cotton ginning sector.
"The government must take concrete steps to reduce the cost of cultivation. Fertiliser prices should also be brought down by offering tax relief," they added.
In response, Hussain expressed agreement with the forum's concerns and stated, "The ministry is actively working on eliminating the 18% GST on local cotton, including lint and cottonseed." He further noted that efforts are underway to resolve pending cotton cess liabilities from the textile sector to ensure the Central Cotton Committee does not face financial constraints.
"We are also considering limiting tax-free imports of yarn and fabric under the Export Facilitation Scheme to support local cotton," said the minister. "This year, we are aiming to produce 10 million cotton bales locally, and we are making every effort to ensure that farmers receive relief in the upcoming budget."
PBF also recommended that new research and seed varieties developed by the Pakistan Agricultural Research Council (PARC) be implemented at the district level through local agriculture departments. "At present, we are unaware of the latest research being conducted in Islamabad. The ministry should work with provincial governments to bridge this gap."
PBF welcomed the government's decision to allow the import of cotton seeds and proposed that legislation be introduced to ensure local banks provide loans to the SME sector.
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