Govt discontinues Rs3.60/kWh subsidy on electricity given to farmers under the Kissan Package
The Power Division put forth the request to discontinue Rs 3.60/kWh subsidy to private agriculture, and it was given the green light.
The Pakistani government has discontinued subsidy on electricity for farmers under the ‘Kissan Package.’ The federal government provided Rs 3.60/kWh subsidy under the package, but it will now no longer be given to private agriculture.
According to the Ministry of Energy, the Cabinet approved the Power Division summary with regard to the implementation of the Revised circular Debt Management Plan on 28th February 2023. The Power Division put forth the request to discontinue Rs 3.60/kWh subsidy to private agriculture, and it was given the green light.
In a letter, it was said that the ‘Federal Cabinet vides above referred has approved the discontinuation of Kissan Package for Base rate relief from 1st March 2023.’ It is also important to mention here that the International Monetary Fund (IMF) has asked the government of Pakistan to discontinue subsidies for farmers subsequently, and the government has given assurance to withdraw this subsidy.
Kissan Package
The Kissan Package is a step towards agricultural development in the country and was announced in 2022. Alongside this, an Rs6,40 billion subsidy for agricultural machinery was also announced, under which easy loans for harvesters, tractors, and threshers will be provided to farmers.
Likewise, in the mini-budget, Rs30 billion was also allocated as a subsidy for imported urea fertilizer. The State Bank of Pakistan has set a target of Rs1,891 billion in agricultural loans for the year 2022-23. Part of the Kissan Package is also to give permission to import spare parts for five-year-old tractors. Under the policy, a 60% concession will be given to these tractors.
Farmers would also be able to get loans, which will allow them to install tube wells powered by solar energy. similarly, the government has imposed a 10% Federal Excise Duty (FED) on sugar-free fruit juices, squash, and additional sugar drinks.
What are your views on this? Share in the comments bar below.
