By Staff Reporter
ISLAMABAD: Prime Minister Shehbaz Sharif unveiled a broad package of agricultural reforms on Wednesday, calling the sector the “backbone” of the nation’s economy and pledging to lift productivity while cutting costs for farmers.
The initiatives include slashing taxes on agricultural machinery, expanding storage capacity, and promoting farm mechanization, all aimed at lifting productivity and easing costs for farmers.
Speaking at a high-level meeting, Sharif outlined plans to slash taxes on farm equipment, boost storage capacity to curb post-harvest losses, and encourage modernization. “We’re committed to supporting farmers and keeping input costs in check,” he said. The reforms aim to drive economic growth, raise yields, and bolster rural communities.
Sharif directed authorities to phase in tax reductions on agricultural machinery and tools, a move designed to accelerate farm mechanization nationwide. He also ordered officials to fast-track efforts to increase storage capacity for agricultural produce, addressing a key bottleneck that has long plagued the sector by contributing to post-harvest losses.
The prime minister hailed provincial governments for allocating funds to new agricultural projects, calling them vital to speeding up sectoral growth. He voiced confidence that Pakistani agriculture students and scientists studying in China on scholarships would return as innovators, further strengthening the industry. “Their contributions as entrepreneurs will help transform this sector,” he said.
In a farmer-friendly decision, Sharif announced that no new taxes would be levied on fertilizers or agricultural pesticides in the upcoming fiscal year. “The development of the agriculture sector will directly benefit farmers and uplift rural communities across the country,” he noted, tying the reforms to broader goals of rural prosperity.
The meeting spotlighted the National Agriculture Innovation and Growth Action Plan, a blueprint to hike farmers’ incomes, ramp up production, and guide reforms. A core focus is boosting exports of value-added agricultural products to lift earnings. The briefing also highlighted that 129 agricultural start-ups have been launched under the National Technology Fund’s Ignite project, signaling a push for innovation and entrepreneurship.
Sharif stressed that modernizing infrastructure, raising productivity, and widening access to affordable credit form the “crucial pillars” of the reform agenda. Attendees, including Federal Minister for National Food Security Rana Tanveer Hussain, Minister for Climate Change Dr. Musadik Malik, and senior private sector figures, were briefed on steps to improve output, infrastructure, and agri-loan access.
Power Sector Reforms
In a separate meeting on power sector overhaul, Sharif underscored that delivering relief to citizens and ensuring steady electricity for industries top the government’s priorities. He assessed progress on privatizing loss-making generation companies (Gencos), rolling out smart meters, and advancing renewable energy and electric vehicles.
The prime minister pushed for quicker action on the second and third phases of Gencos privatization, insisting the process be televised live for transparency. He also demanded rapid completion of smart meter installations and swift upgrades to the electricity transmission and distribution network.
Sharif announced the federal government has completed solarizing tube wells in Balochistan, a step expected to enhance agricultural output in the region. He ordered faster privatization of electricity distribution companies and the nationwide rollout of electric vehicle charging stations. “Completing low-cost, eco-friendly renewable energy projects remains a top priority to provide sustainable relief,” he said, noting that electricity tariffs were held steady for consumers this past winter.
The meeting revealed that the first phase of Gencos privatization has wrapped up, yielding 9.05 billion rupees in revenue. Talks with 36 Independent Power Producers (IPPs) on tariff cuts are projected to save the treasury 3.69 trillion rupees, offering a significant fiscal boost.
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