Punjab earmarks Rs130b for agriculture amid scepticism
The Punjab government on Monday unveiled a significant 10.7% increase in its agriculture sector budget for the upcoming fiscal year 2025-26, allocating Rs129.8 billion compared to Rs117.2 billion in FY25.
However, the announcement was immediately met with scepticism from farmers' representatives, who argued that financial packages could not help without fundamental reforms to ensure fair crop prices. Provincial Finance Minister Mian Mujtaba Shujaur Rehman, during his budget speech, stated that the total development outlay for agriculture, livestock and dairy development, irrigation and water in FY26 would be Rs123 billion, with an additional Rs56.2 billion being earmarked as non-development funds.
This conflicts with the combined Rs129.8 billion agriculture sector outlay presented in budget documents. These papers reveal that the total Annual Development Programme for the agriculture sector will be Rs80 billion. This comprises 37 schemes, where 16 ongoing projects will receive Rs32.4 billion and 21 new schemes will get Rs47.6 billion.
Key initiatives include the Chief Minister's Punjab Hi-Power Tractor Programme, for which Rs10 billion has been allocated, the CM's Green Tractor Programme Phase-II (Rs5.5 billion) and the CM's Programme for Water Efficient Agriculture (Rs2 billion). Other notable projects are agricultural farm mechanisation (Rs0.7 billion), Fasal Bema (Rs1.5 billion), transformation of agriculture in Potohar (Rs1 billion), Green Pakistan (Rs20 billion), solarisation of tube wells (Rs8.7 billion) and Kissan Card (Rs6.3 billion). An agricultural subsidy of Rs10 billion has also been set aside.
Livestock and dairy development has secured a funding of Rs5 billion, which will support 16 schemes. Of these, nine ongoing schemes will get Rs2.8 billion and seven new projects will receive Rs2.2 billion. The allocation for the CM Punjab Livestock Card scheme is Rs1 billion. Irrigation has received a hefty Rs38 billion that will go to 120 schemes – 65 ongoing projects with Rs24.8 billion and 55 new schemes having Rs13.2 billion. The water sector allocation is Rs6 billion, supporting 47 ongoing schemes (Rs4.95 billion) and a new scheme (Rs1.05 billion).
Expressing deep dissatisfaction, Pakistan Kissan Ittehad President Khalid Khokhar said, "We do not need any package from the federal or provincial government; we need prices for our produce." He said that the cost of production was higher than market prices for major crops such as wheat and corn. "Farmers are frustrated due to the absence of support prices as their livelihoods are at stake."
Khokhar added that fertiliser sales had shrunk 30% along with tractor demand, which dropped 50% from 18,000 to 9,000 units in the first five months of calendar year 2025. The drop comes despite distribution of around 1,000 tractors by the government, he mentioned.
Drawing comparison, he pointed out that farmers in India were in a better position, "who know the price for their next crop before the sowing season". "That is called futures trading; we need to put our house in order."
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