ECC Approves PM’s Package for Rabi Crops

Adviser to the Prime Minister on Finance Dr. Abdul Hafeez Shaikh chaired the special meeting of the Economic Coordination Committee (ECC) today to approve the “PM’s Package for Rabi Crops-Specially wheat”.

In order to give the incentives to the farmers for the upcoming Rabi season, the Federal Cabinet in its meeting held on October 27, 2020 constituted a special committee to design the package to reduce the input cost for the farmers with the special intent to increase the production of wheat in the country.

According to the package, Rs. 1000 per 50 kg bag will be given as a subsidy on fertilizers – DAP, P and K fertilizers. The Federal and Provincial governments will share the subsidy in a 70 percent and 30 percent ratio.

Furthermore, subsidies of Rs. 250 per acre will be given on weed-icides and Rs. 150 per acre on fungicides, by the Federal Government. The provinces will distribute the subsidy in their already prevalent manner but will be responsible for ensuring transparency.

The Federal funds for the subsidy will be directly disbursed to the provinces by the Finance Division on the basis of their share, keeping in view their system strength and overall outreach. The Ministry of National Food Security would examine the provinces’ demand for funds and after its recommendation Finance Division shall transfer the funds to the provinces.

ECC also decided that the provinces will expand, improve and upgrade their subsidy disbursement systems. The package will be presented in the next Cabinet meeting on Tuesday for approval by the Federal Cabinet.

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