Pinning hopes on provincial governments
Though no budget can appease all segments of society, as one man’s meat is another’s poison, the policymakers have at least rectified their direction as far as the allocations made for agriculture in the budget 2023-24 are concerned. Increasing the bank loan allocation and targeting young farmers for the purpose, subsidising import of seed, solarisation of agriculture tube-wells and farm machinery, and introducing agro-industry close to villages are the steps announced in the budget that could only be admired. However, the sector watchers mention a word of caution: as most of these measures want a proactive role of provincial governments during implementation, therefore it will be too early to pin one’s hopes for their success. Enhancing the farm loans allocation from Rs1.8 trillion to Rs2.25tr is a welcome step, but it is yet to be seen how the government and the State Bank of Pakistan ensure that these loans are disbursed, particularly among the smallholders, who are in dire need of capital at the sowing of each crop.