PBF urges PM to reduce tube well tariff

LAHORE:

The Pakistan Business Forum (PBF) has urged Prime Minister Shehbaz Sharif to reduce tariffs on pipe farming, similar to the recent reduction announced for the industrial sector. In a letter addressed to the prime minister, PBF Chairman Khawaja Mehboobur Rehman lauded the decision to reduce electricity tariffs for the industrial sector, highlighting its potential to boost the country’s industrial growth and competitiveness.

Rehman highlighted the significant contribution of the agriculture sector to the GDP in the financial year 2023-24, despite challenges such as high energy costs. He suggested that reducing the tariff of agricultural tube wells from the current price of Rs 10 per unit to a more affordable price, similar to the recent reduction in the industrial sector, would provide many benefits. These benefits include increased productivity and efficiency, reduced costs, improved profitability, enhanced food security and greater economic growth.

PBF believes that this reduction would be a critical step to support the agricultural sector and ensure the country’s food security. The PBF chairman further highlighted the potential of the agricultural sector to revive the economy. He emphasized the importance of learning from global leaders and fostering an innovation-friendly environment to unlock the industry’s latent potential.

Currently, Pakistan imports edible oils and other food products worth $10 billion. A greater focus on agriculture could lead to self-sufficiency and significantly increase agricultural exports, he said. PBF cited the example of the Netherlands, which exports agricultural products worth more than $100 billion despite being 19 times smaller than Pakistan. With its favorable climate, Pakistan has the potential to export agricultural products worth at least $30 billion.

PBF estimates that widespread adoption of new technologies in developing rural economies can potentially increase farm incomes by up to 200%, leading to reduced poverty and improved livelihoods for millions of Pakistani farmers and households.