PM adviser stresses shift in focus to high-value crops

ISLAMABAD: Adviser to Prime Minister on Finance Miftah Ismail on Thursday underscored a need for shift in focus to high value crops to double the value of agriculture products within five years, saying that would help in reducing import burden of multibillion dollars.

“Shifting of focus from traditional crops to high value crops will not only help earning huge foreign exchange reserves but will also change the fate of farmers and other people connected with this (agriculture) sector,” Ismail said, addressing the 2nd ‘Leaders in Islamabad Business Summit 2018’.

Martin Dow, in collaboration with Nutshell Forum and ministry of planning, development and reforms organised the event. Business delegations from China, Gulf Cooperation Council and other regional countries attended the summit.

The finance adviser said rationalisation of policies in agriculture sector could double the value of agriculture products in five years and that would ease import bills.

Ismail said the government has to pay huge subsidy on export of surplus sugar and wheat. “The focus should be given to produce high quality cotton, and other high value crops including edible oil and pulses.”

While pointing out some structural issues in Pakistan economy, the adviser said the government has nothing to do with running businesses.

Ismail further said it is vital to sell all the public sector entities, including Pakistan International Airlines, Pakistan Steel Mills (PSM) and Pakistan State Oil (PSO) in order to streamline the course of national economy.

The finance adviser said the government is paying more than Rs400 million every month to PSM as a bailout package. “The amount could be utilised for development projects for the people.”

Ismail said the government would manage to achieve most of the targets set for the current budget of 2017/18. Few targets including budget deficit could, however, be missed, he added.

“We will try out best to contain the budget deficit to five per cent,” the adviser said, adding that the current government inherited the budget deficit of over eight percent and it managed to bring it down to around four percent within three years.

Ismail said the government depreciated the Pakistani currency in December last year due to increasing trade deficit. “When imports are going high and exports are on a declining trend the best tool government has in the box is to devalue the currency.”

The finance adviser, however, said there is nothing wrong with high current account deficit or trade deficit as in a developing country like Pakistan most of the imports consist of machinery to install new industries, which would ultimately give a sustainable boost to the country’s economy.

Ismail said the government has added additional around 12,000 megawatts electricity to the grid. Besides, arrangements have been made to add 20,000MW more electricity within the next two to three years, which would end the load-shedding forever, he added.

The adviser hoped that the economic growth target of six percent set for the current fiscal year would be achieved, which means that “there would be more business activities, more jobs, and more revenues”.