MM News

Budget for 2023-24 has several salient features that are aimed at benefiting the common people of the country. The budget has been designed to promote economic growth, improve social welfare, and provide relief to businesses and individuals.

One of the key benefits of budget for the common people is to increase minimum wage to Rs. 25,000 per month. This will benefit millions of workers across the countries who are struggling to make ends meet. The increase in salaries for government employees by 10% will also help to improve their standard of living although inflation is hyperactive in Pakistan. The government has also announced a tax relief package worth Rs. 150 billion, which includes a reduction in taxes for small businesses and an increase in the tax exemption limit for individuals. This will provide relief to businesses and individuals who are struggling with economic impact of the COVID-19 pandemic. The government has allocated Rs. 900 billion for development projects (which is not liked by IMF), including infrastructure, health, education, and housing. To subsidies to agriculture, commercial industry and export Pakistani government has allocated Rs. 1.2 trillion. This will benefit the common people by improving the country’s social and economic infrastructure. Improved infrastructure will lead to better access to healthcare, education, and housing, which will improve the quality of life for the common people. The government has also announced a new social welfare program called the Ehsaas Kafalat Program. This program will provide financial assistance to 7 million families who are living below poverty line. This is a significant step towards reducing poverty and improving social welfare in the country. However, the increase in the prices of petroleum products may lead to inflation and affect the purchasing power of consumers although government now decreases petroleum prices. The government needs to take steps to mitigate the impact of this increase on the common people.

Here we must take this opportunity to talk about agriculture because agriculture sector is the backbone of the economy, employing over 40% of the workforce and contributing around 20% to GDP, and it is the source of food security for fast growing population. Although, in the budget of 2023-24 Pakistan’s government is supposed to allocate Rs. 1.2 to subsidies, agriculture, commercial industry and export and the exact amount allocated for specific sector is not mentioned. However, we think that agriculture sector has been neglected in terms of budgetary allocations because it is the sector that has the potential to overcome rural poverty, produce enough food for export, earn foreign earnings, and contribute into economic growth. Unfortunately, it is very hard to say that being an agriculture country we are unable to produce our stable food so called wheat and provide to consumer in a subsidy rate, and food security is the serious issue now-a-days in Pakistan, with a significant portion of population facing food insecurity. The government’s budget for 2023-24 has recognized this issue and has allocated funds towards improving food security in the country. Therefore, in budget of 2023-24, we must include a proportion and measures to improve food distribution systems in Pakistan. This includes investments in storage facilities, transportation infrastructure, and marketplaces. By improving these systems, the government hopes to ensure that food is available to those who need it, particularly in remote or underdeveloped areas of the country. In addition to such measures, the government should allocate funds towards social safety nets. This includes programs to provide food assistance to vulnerable populations, such as low-income families and those affected by natural disasters. By providing food assistance to those who need it, the government hopes to reduce food insecurity and ensure that all citizens have access to adequate nutrition. Let’s we take an example of 2022 flood disaster, it destroyed crops and grazing land which caused a shortage of food for both human as well as livestock. For human, food wheat was imported from other countries but our government did not consider livestock food security while the livestock is a biggest sector in agriculture which provides nutritional food and other products. Without adequate food livestock is enable to produce milk, and meat, this has increased the milk and meat prices and making them unaffordable for overburdened population of Pakistan and caused food security issue for human.

If we overcome such challenges then we think Pakistan can easily stand-up and combat with other sector issues. Another challenge facing by agriculture sector is the lack of investment in irrigation infrastructure. Pakistan is an arid country, and agriculture is heavily dependent on irrigation. However, due to the lack of investment in irrigation infrastructure, farmers are not able to get adequate water for their crops which affect crop yields and productivity. Therefore, it is necessary to increase budgetary allocations for agriculture sector: this will help to invest in irrigation infrastructure, research & development, and provide access to credit and financial services to farmers. To promote economic growth through the agriculture industry, the government can take several measures. These include investing in irrigation infrastructure to improve water management and increase crop yields, providing access to credit and financial services to farmers, promoting the use of technology and modern farming techniques, and investing in research and development to improve crop varieties and increase productivity. In addition, the government can provide subsidies and incentives to farmers to encourage them to adopt sustainable and environmentally friendly farming practices. This will not only boost agricultural productivity but also help to address environmental challenges such as soil degradation and water scarcity. Overall, the lack of budgetary allocations for agriculture sector is affecting its growth and development. The sector needs adequate funding for irrigation infrastructure, access to credit and financial services, and research and development to address its challenges and unlock its potential for growth and development.