Govt to directly subsidise fertiliser cost to help farmers

ISLAMABAD: The government has announced a significant policy shift aimed at directly assisting farmers by providing subsidies on fertilizers, bypassing traditional channels that often benefit manufacturers more than the intended recipients. Federal Minister for Energy, Musadik Malik disclosed this decision during a press conference on Thursday, citing concerns that the bulk of the support intended for farmers ends up with factory owners rather than reaching those working the land. In addition to subsidy reallocation, Malik unveiled plans to solarize agricultural tube wells as part of a comprehensive initiative to modernize farming practices and enhance energy efficiency in the agricultural sector.

Malik also expressed concerns over monopolistic practices in the seed sector, suggesting that fair competition is essential for agricultural development. “By providing high-yielding seeds to farmers, we anticipate a significant increase in agricultural productivity,” Malik asserted.

Malik announced that gas would be available during Ramazan from 3 PM to 10 PM and from 2:30 am to 8 am. In response to concerns over electricity theft, Malik indicated that load-shedding measures are being implemented in areas where such theft occurs. Malik said that the investigation into the purchase of costly coal by the Sahiwal Coal Power Plant is underway, promising to share pertinent information upon the investigation’s conclusion. Additionally, Malik pledged to collaborate with the Oil and Gas Regulatory Authority (OGRA) to address incidents involving explosions in LPG cylinders.

Additionally, Malik highlighted the government’s initiative to provide small loans for urban areas through banks, underscoring efforts to address economic disparities and promote inclusive growth strategies.

Malik also pledged no further increase in circular debt by the year’s end, aiming to tackle the burgeoning financial burden facing Pakistan’s energy sector. The circular debt soared to Rs2.31 trillion by last year’s conclusion and will be kept at this level by the end of this year. There is a budgeted amount of around Rs300 billion, so the debt will not see further growth. Highlighting the government’s initiatives, Malik articulated plans to fortify electricity consumption, particularly during winter, with a firm commitment to fostering green energy adoption. Additionally, he outlined endeavours aimed at bolstering both electricity and gas production through targeted industrial stimulation. He announced that directives have been issued to public sector oil companies to establish separate entities for renewable energy, aiming to foster cost-effective electricity production while safeguarding the environment. He also assured reforms within the Distribution Companies to bolster efficiency.

Regarding the Iran-Pakistan gas pipeline project, Malik disclosed the commencement of planning, anticipating the imminent launch of the project. Malik also pledged concerted efforts to overcome obstacles hampering the project’s progress. Progress will be soon seen on this project, he added. In response to this issue, Malik unveiled a policy aimed at establishing farm industries in villages across every division and justified saying that 30 to 35 percent of fruits spoil before reaching the market. Banks, he said have been directed to facilitate agricultural industrial loans to support the establishment of these farms, emphasizing the importance of financial assistance in agricultural development. The minister said a plan has been finalized for IT-related training, especially machine learning and artificial intelligence to 0.5 million youth while banks will also be asked to provide loans for the promotion of small and medium industries.