NA panel told: Uplift budget of MoNFS&R curtailed due to fund crunch

Business Recorder

04-07-2025

ISLAMABAD: The National Assembly Standing Committee on National Food Security and Research was informed that development budget of the ministry had been significantly reduced from Rs24 billion to Rs4.7 billion due to fiscal constraints imposed by the federal government under its obligations to the International Monetary Fund (IMF), leading to the curtailment of various planned projects.
The committee met under the chairmanship of Syed Tariq Hussain, which considered agenda item regarding the point of order raised by Asad Qaiser, MNA and former Speaker of the National Assembly, concerning the challenges faced by tobacco growers and the need for a comprehensive policy to address their concerns.
It was informed that tobacco is a significant cash crop in Pakistan, cultivated over approximately 55,000 hectares with an annual production of 186,000 tons. Of this, KPK contributes significantly, with 32,936 hectares under cultivation and annual production of around 97,385 tons making it the primary contributor to Pakistan's exportable tobacco. Despite its importance, tobacco growers face financial hardship.
The crop spans eight months, and the cost of cultivation on one hectare reaches approximately Rs1.9 million, while farmers report an average monthly profit of only Rs3,700. Contributing factors include delays in announcing the indicative price, lack of government procurement, poor performance of the Pakistan Tobacco Board (PTB), insufficient federal oversight, lack of research and development, and failure by the Ministry of National Food Security and Research to appoint or nominate PTB members.
The Pakistan Tobacco Board informed the committee that it had conducted meetings with stakeholders and that tobacco is currently being purchased using a weighted average method. The board also claimed to address concerns regarding pricing, rejections, and related matters. However, the committee expressed concern over the PTB's lack of performance and coordination with growers.
The committee issued several directives to ensure comprehensive follow-up. The Pakistan Tobacco Board, the Ministry of National Food Security and Research, the KPK Agriculture Department, and the Federal Board of Revenue (FBR) were instructed to present detailed information in the next meeting, including the current tobacco taxation policy, CESS collected over the last 10 years, utilisation details of collected CESS and the policy framework under which it was used, CSR activities undertaken, and the breakdown of CESS collected by the federal government and shared with provinces, including under which budgetary heads.
The committee directed the secretary of the Ministry of National Food Security and Research to constitute the Pakistan Tobacco Board within one month and submit a report to the committee.
Additionally, the secretary was instructed to convene an emergency meeting of the board to address the outstanding issues faced by tobacco growers and to provide a follow-up report within one week. The Federal Board of Revenue (FBR) is to be invited to the next meeting to present details specifically related to CESS collection.
The Pakistan Agricultural Research Council (PARC) was also assigned the task of outlining its support initiatives for tobacco growers and presenting a proposal for establishing a research centre aimed at improving the quality and productivity of tobacco crops.
The committee directed the Pakistan Tobacco Board, along with the relevant provincial and federal government authorities and representatives of tobacco growers, to hold a joint consultation and submit a comprehensive report addressing all unresolved issues prior to the next meeting.
To further facilitate discussions on this matter, the committee granted Shehram Khan Tarakai, MNA, the status of Special Invitee for all future proceedings related to tobacco issues.
The committee raised concern with the ministry over the exclusion of several schemes previously discussed and recommended by the committee, in particular the proposed Dates Research Centre at Khairpur, to be established in collaboration with Shah Abdul Latif University.
In response, the secretary explained that the ministry's development budget had been significantly reduced from Rs24 billion to Rs14 billion, then to Rs7 billion, and finally to Rs4.7 billion due to fiscal constraints imposed by the federal government under its obligations to the IMF, leading to the curtailment of various planned projects.
The committee reiterated its directive to the Pakistan Agricultural Research Council (PARC) to visit Khairpur along with the concerned Member and to submit a feasibility report before the Committee, so the project may be pursued through re-appropriation of funds.
In relation to Agenda Item No 4, the Pro Vice-Chancellor of Muhammad Nawaz Sharif University of Agriculture, Multan briefed the committee on the university's ongoing and planned research initiatives, their impact on national food security, collaborations at both national and international levels, and the utilisation of research funds.
Key innovations highlighted included the development of hybrid wheat varieties that can increase crop yield by up to 20 per cent, and self-irrigating wheat with modified leaf angles to channel water directly to the roots while minimising evaporation.
Additionally, they are working on drillers expected to be commercialised within the next three years, aimed at increasing wheat productivity to 80–100 maunds per acre. Other areas of research include pulse production, digital marketing platforms for post-harvest handling and market access, fruit value addition, soil-less vegetable farming, salinity adaptation in the Southern Indus Basin, cotton and vegetable seed research, and the establishment of a National Crop Genomics and Speed Breeding Centre.
The committee appreciated the university's efforts and emphasised the importance of making research outcomes accessible to farmers. It stressed that practical application of these innovations is critical to enhancing agricultural productivity and ensuring national food security.
Furthermore, the committee urged the ministry to present a comprehensive 20-year agricultural development plan. Despite the research and efforts underway, major crop production has declined by 17 per cent, highlighting the urgent need for a long-term strategy that addresses the growing challenges of pollution, climate change, and sustainability in the agriculture sector.
Copyright Business Recorder, 2025