Trade Chronicle Sep-Oct 2015

TRADE CHRONICLE
as the projects are wellmanaged
and potential risks
are mitigated.
IMF’s Chief De Mission for
Pakistan Harold Finger has
stated in an interview that
CPEC is of great significance for
economic development of
Pakistan as it can provide the
required infrastructure to
improve
Pakistan's
competitiveness and create a
business-friendly environment.
The World Bank says that
investment in Pakistan is
expected to increase to 15.4 per
cent of GDP by 2017 on account
of operationalisation of CPEC
related projects. However, the
slowdown in China, if prolonged,
could have adverse effects on
investment and trade, and
Pakistan may not have the
ability to absorb the external
shocks in the absence of strong
buffers, according to the focused
report on Pakistan. Let’s pray
it would not be happened as lots
of hope have been pinned by
the local industries with CPEC.
Experts have rightly suggested
setting up an Infrastructure
bank to provide a rupee
component for the projects
envisaged under the CPEC in
case there is any hesitation
from the either side.
The government has last year
released list of some major
projects though Economic
Survey 2014-15. What is the
status of each project and how
local investors and services
providers can take part therein
may please be facilitated
through a government-run
online portal listing the various
projects, the sources of funding,
the stages of completion and
weekly updates to publicly and
unequivocally demonstrate
that CPEC projects are being
pursued evenly and in a costeffective
manner.
The government should
establish office in each province
where people can take firsthand
information and planned
their participation in creating
employment opportunities and
private-sector investment.
Farmer package
hopes to yield
Prime Minster, Mian Nawaz
Sharif has finally got a nod
from a local honorable court
to implement its National
Kissan Relief Package (NKRP)
in letter and in spirit. The
intention of government was
noble but the timing for
announcement was misjudged
that delayed the start of
package. The quick reaction
from local fertilizer importers
and manufacturers came in
shape of reduction of prices
of potash and phosphate
fertilizers, which will help a
lot in balance use of fertilizers
and in country as sometime
farmers could not use
phosphate fertilizers owing to
the high cost.
Acknowledging the hardship
faced by the farmers because
of unfavourable weather
conditions, falling income and
declining trend in prices of
agricultural commodities in
domestic and international
markets amid rising cost of
production, Prime Minister
Nawaz Sharif has rightly
announced a relief package of
Rs341 billion to revive the
farm sector - commented by
media. The package provides
a direct benefit of Rs.147bn to
small farmers across the
country whereas an additional
loan of Rs.194bn will be
available to the agriculture
sector.
Earlier, the farmers of Punjab
have complained that the
increase in input costs due to
indirect taxes, increased cost
of electricity to run tube-wells,
and low prices in the local
market meant that farmers
were going to be unable to
break even from their crop
sales. Concerns were also
raised over the lack of
incentive to export products,
fears that vegetables from
highly subsidised India would
flood the market and the
dismal position of promised
subsidies on agri-machinery,
including tractors. Key among
the demands was one for a
support price for cotton and
rice. Farmers’ hue and cry
finally has been heard by
Prime Minister Nawaz Sharif
who has responded in a big
way by announcing a Rs.341
billion package apparently
designed to shield farmers
against the slump in
agricultural commodity prices.
Agriculture constitutes the
largest sector of our economy.
Majority of the population has
been directly or indirectly,
dependent on this sector. It
contributes about 24 percent
of Gross Domestic Product
(GDP) and accounts for half of
employed labour force and is
the largest source of foreign
exchange earnings. It feeds
whole rural and urban
population. Pakistan economy
is agriculture-based and with
this package one should hope
betterment in farmer’s life as
well as availability of cheap
commodities to the people as
well.
Trade Chronicle - September - October 2015 - Page # 06