Mini-budget: Rs2,000bn Kissan Package to continue

ISLAMABAD: The Rs2,000 billion Kissan Package for agricultural development in country, announced in 2022, and Rs6.40 billion subsidy, announced for agricultural machinery, would continue under which easy loans for tractors, threshers and harvesters would be provided to farmers, according to the mini budget documents.

Under the mini budget, Rs30 billion has been allocated as subsidy for imported urea fertiliser. The State Bank of Pakistan (SBP) had set target of agricultural loans at Rs1,819 billion for the financial year 2022-23. Out of this, Rs965 billion have been disbursed during the last seven months.

Under the Kissan Package, permission has also been given for import of spare parts of five-year-old tractors. For the purpose, the Import Policy Order 2022 has been amended to reduce the manufacturing cost of tractors. Under the amended policy, up to five-year-old tractors could be imported, and up to 60 per cent duty concession would also be given on these tractors.

The finance minister said in his mini budget speech that approval has also been given for Prime Minister’s Youth Business Agricultural loans. Under the scheme, Rs30 billion loans would be given to the youth. Subsidy amounting to Rs6.40 billion would be given for import of agricultural machinery. Also, Rs10 billion had been allocated for small farm-related business loans. The worth of farmlands had been enhanced from Rs4,000 to Rs10,000 PIU [Produce Index Unit] and farmers would be able to acquire more loans against their farmlands.

Farmers would be able to get loans to install tube-wells on solar energy. The government imposed 10 per cent Federal Excise Duty (FED) on sugar-free fruit juices, syrups, squash and additional sugar drinks. The FED has been increased from 13pc to 20pc on carbonated drinks, sweet-flavoured juices, pulp of fruits or vegetables, etc.