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ADB links loan with agri reforms
ISLAMABAD - The Asian Development Bank (ADB) has asked
Pakistan to speed up process to abolish subsidies mechanism
for four major crops, close down all food deparments and
involve private sector in trade of agriculture sector for
enabling the country to draw US $ 250 million loan in current
fiscal year.
"The ADB has recommended to abolish food deparments, subsidies
mechanism for major agricultural crops and involve and
encourage private sector in trade of agriculture to obtain
much-needed credit line worth US $ 250 million," sources in
Ministry of Food, Agriculture and Livestock (MINFAL) told The
Nation here Thursday.
The sources said that the ADB highups wanted to speed up the
required process enabling Pakistan to get precious amount for
the most neglected agriculture sector of the country.
According to the ADB recommendations for achieving desired
objectives, Pakistan will have to speed up the process for
elimination of subsidies of four major crops including wheat,
rice, cotton and sugarcane.
The government has already abolished subsidies for five minor
crops including onion, potato, soyabean, sunflower and canola
but it always tried to play down the matter and only provided
information to the masses about its decision to stick with the
support price mechanism for four major crops.
There is enormous pressures from the IMF and ADB to abolish
subsidies for agriculture sector but agriculture experts
always opposed it.
They say that when agriculture growth remained negative during
last fiscal year, it was not wise move on part of the
government to immediately get rid of subsidies. "The
government is intended to take steps gradually in this
connection but the pressure is mounting from all sides," an
expert said.
When this scribe contacted Agriculture Minister Khair Mohammad
Junejo for comments, he said that the loan facility extended
by the ADB would be utilised for capacity building of
agriculture sector keeping in view the WTO rules. "It will
also facilitate to promote trade of different crops," he
added.
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