(Economic Wing) Frequently Asked Questions
Q. 1. What is the background of the Economic Wing? Answer: The Directorate of Economics and Statistics was established at Karachi in 1960. Its nomenclature was changed to Department of Marketing and Intelligence and Agriculture Statistics in 1963. This department was comprised of three sub-section as given under:i. ii. iii. Agricultural Economics and Statistics Farm Management and Economic Studies
In 1989, the Planning Unit and (EPA) Economic Policy Analysis Project was merged and proposed three Directorates namely:i). Directorate of Agriculture Statistics. Data Assembly, Data Processing, and Forecasting and reports on Food and Fiber System.
ii)
Directorate of Economic Research. Commodity situation reports, Farm Management and Agribusiness.
iii)
Directorate of Agriculture Policy Alternative policy options for agricultural and agricultural business problems through input, production analysis and other studies.
At the time of merger of Economic Wing, 20 posts of Field Investigators (BPS11) and seven posts of Statistical Assistant were surrendered and one post of Director (AP) (BPS-19) was created. In 1989 there were three post of Statistical Officers, one post of Survey Officer, one post of Economic Consultant, after 1993, due to Economic Cut, down-sizing/right sizing, one posts of Deputy Director, one post of Survey Officer, two posts of Statistical Officer and eleven post of Research Officers and four posts of Field Investigators were abolished/ surrendered without any change in the assignment and function/responsibilities of the officers.
Q. 2. What is Economic Wing? Answer: The Economic Wing is a research and publication Wing of the Ministry of Food, Agriculture and Livestock. This Wing is responsible for collection, compilation and dissemination of agricultural statistics at national and international level and to provide MINFAL timely and relevant economic and policy support under the rules of business. This wing provides feed back to MINFAL on Agriculture Economic and related materials policy matter. Q. 3. What is the role of Economic Wing? Answer: The Economic Wing plays a vital role in the activities of the MINFAL. It provides feedback to MINFAL in trade policy, agricultural policy, farm management, dissemination of agricultural statistics etc to researchers, policy makers and planners in public and private sector. Q. 4. What are the functions of Economic Wing? Answer: Economic Wing is responsible for providing economic and policy analysis support to MINFAL, assembling and dissemination of agricultural statistics, monitoring of agricultural credit, overview its disbursement and utilization including policy of reforms, coordination with national and international agencies in economic matters. It also provides strategy, planning and directions and economic intelligence on Food and Agriculture Sector to MINFAL and other GOP Ministries, private organizations. This wing also presents MINFAL and GOP in these matters in meetings on the behalf of Secretary at national and international level. Q. 5. What is composition of Economic Wing? Answer: The Economic Consultant is head, overall incharge of the Economic Wing. He supervises this wing in performing all activities. The following staff is working under his supervision. 1. 2. 3. 4. Director (BPS-19) ……………..(1) Deputy Director (BPS-18)……..(4) Research Officers (BPS-17)……(7) Statistical Officer (BPS-17)……(1) in position 2 in position & 2 vacant 6 in E.W, 1 WTO vacant
ORGANIZATIONAL CHART OF E.WING
ECONOMIC CONSULTANT
DIRECTOR
Deputy Director (AE&S)
Deputy Director (ES)
Deputy Director (FM) (Vacant)
Deputy Director (AP) (Vacant)
Research Officer
Research Officer
Research Officer
Research Officer
Research Officer
Research Officer
Statistical Officer
Research Officer
Q. 6. How a publication can be obtained from Economic Wing? Answer: If anyone require publication of Economic Wing. He must submit a request on the name of Economic Consultant. The address is given as under:Raja Abdul Hameed Economic Consultant Ministry of Food, Agriculture and Livestock (Economic Wing) Shaheed-e-Millat Secretariat, 8th Floor, Islamabad Q.7. What is the role of MINFAL in agricultural credit? Answer: Ministry of Food, Agriculture and Livestock (MINFAL) monitors the credit of banks in providing agricultural credit and also try to solve any hitch in disbursement of agricultural credit. Q.8. Which banks are proving agricultural loans to farming community? Answer: Currently, 21 banks are disbursing agricultural loans i.e. 5 big banks (NBP, HBL, MCB, UBL & ABL), 14 Domestic Private Banks (Askari Com. Bank Ltd., Bank Al-Habib Ltd., Bank Al-Falah Ltd., My bank Ltd., Faysal Bank Ltd., Habib Metropolitan Bank Ltd., PICIC Com. Bank Ltd., KASB Bank Ltd., Prime Com. Bank Ltd., Saudi Pak Com. Bank Ltd., Soneri Bank Ltd., The Bank of Khyber, The Bank of Punjab & Standard Chartered Bank (Pakistan) Ltd.) and two specialized banks (ZTBL & PPCBL).
Q.9. What are the per acre credit limit for different crops? Answer: The indicative per acre credit limit for major crops are as under: i. Sugarcane Rs.18,000/ii. Paddy (Rice) Rs.9,000/iii. Wheat Rs.8,000/iv. Cotton Rs.11,000/v. Other crops As per actual cost Q.10. What are the per acre credit limit for Matured Orchard of various types of fruits? Answer: The per acre credit limit for matured orchard of various types of fruits are as under: i. Mango Rs.30,000/ii. Citrus Rs.25,000/iii. Apple Rs.30,000/iv. Banana Rs.25,000/v. Jujuba Rs.10,000/vi. Guava Rs.15,000/vii. Coconut Rs.15,000/viii. Litchi Rs.25,000/ix. Palm Rs.15,000/Q.11. What is the classification of Agricultural Finances? Answer: Agricultural credit is provided in different types/schemes: i.e. Short Term Credit (it is basically for production purposes and is given for a period less than a year), Mid Term Credit (it is provided for both production and development purposes and is given for a period of 3 to 5 years), Long Term Credit (it is basically provided for development purposes and is given for a period of more than 5 years). Q.12. What is Revolving Credit Scheme? Answer: The banks can provide finance for agricultural purposes under this scheme on the basis of revolving limits for a period of three years with one time documentation. The borrowers are only required to clear the entire loan amount (including mark-up) once in a year at the date of their own choice. Multiple drawls are allowed and the borrowers are also allowed to make partial repayments. Only the amount utilized by the borrower will attract mark-up. This facility can be availed by the farmers just like “Credit Card”. The limits under this scheme are automatically renewed on annual basis without any request or fresh application. Q.13. What is the rate of mark-up on agricultural loan? Answer: The mark-up rate varies from bank to bank, about 9% to 15%. Q.14. Is any bank-providing rebate to the farmers if loan is paid back within time? Answer: Only ZTBL is providing 1% rebate if the loan is paid back within due time.
Q.15. How many borrowers the banks are serving? Answer: At present, agricultural credit is being provided from banking sector to 1.627 million (25%) borrowers out of potential market of 6.6 million borrowers. Q.16. Who is eligible for agricultural credit from the banks? Answer: All categories of farmers (owner, owner-cum-tenant and tenant) and Non-Farm households (small & large farms) in Pakistan are eligible for agricultural/farm credit for the banks subject to completion of required formalities. Q.17. What are the eligibility criteria for availing of agricultural credit from the banks? Answer: The applicant should fulfill the following criteria/requirements:i. He must be a genuine farmer/tenant. For this purpose a farmer’s name must appear in revenue record and a tenant should establish this fact through a government paper or he must be handling Non-Farm activities like livestock, poultry, dairy farming, fishery, forestry etc; ii. He should not be the defaulter of any bank. iii. He must produce proper securities / sureties / passbook or other collaterals acceptable to the banks. Q.18. For what purposes the banks provide Agricultural Credit? Answer: Agricultural credit is provided by the banks for complete value chain of activities such as production/crop loans i.e. in-puts (seed, fertilizer, & pesticides etc.), development loans (tractors & tubewells, agricultural machinery / equipments / implements etc.), corporate farming, marketing, cold storage (godowns) on farm & off farm, silos, processing of crops (other than major crops), fruits & vegetables, grading, polishing, packing, transportation and exports of agricultural goods etc. Agricultural credit is also available for non-farm sector such as poultry, livestock, dairy farming, forestry and fisheries, apiculture, sericulture, floriculture, horticulture etc. Q.19. What are basis of classifying farms by small, medium and large in four provinces? Answer: Details of size of land holdings for various categories of farms in different provinces are as under: Subsistence Holding (Small Farmers) Up to 12.5 Acres Up to 12.5 Acres Up to 16 Acres Up to 32 Acres Economic Holding (Medium) Above 12.5 Acres to 50 Acres Above 12.5 Acres to 50 Acres Above 16 Acres to 64 Acres Above 32 Acres to 64 Acres Above Economic Holding (Large) Above 50 Acres Above 50 Acres Above 64 Acres Above 64 Acres
Name of Province Punjab NWFP Sindh Balochistan
Q.20 What types of sureties / security/collaterals are acceptable to the banks for providing agricultural credit to farmers/growers? Answer: Passbook, urban/rural property, commercial property, Defense Saving Certificates, Special Saving Certificates, Gold & Silver Ornaments and personal surety. Q.21. What are the basis for entitlement of loans against Passbook, rural and commercial properties, DSCs, SSCs, Gold / Silver etc. for different agricultural loans? Answer: The basis for entitlement of loan from the banks for the farmers is 80% against passbook, 75% of encashment value of DSCs and SSCs and 60% of rural/commercial properties and gold / silver ornaments etc. However, these ratios may differ from bank to bank depending upon their credit policy and credit worthiness of borrower. Q.22. What is the limit of loans against personal surety? Answer: The limit of Agricultural loans against two credit worthy sureties acceptable to the bank in lieu of mortgage of land is Rs.100, 000/= per borrower. However, total guarantee of one guarantor should not in any case exceed Rs.500, 000/= excluding “Processing Units”. Q.23. Is there any system/procedure under which farmers can get agricultural loans at their doorsteps? Answer: Mobile Credit Officers (MCOs) and Agricultural Credit Officers of banks are visiting the villages regularly to ascertain the credit needs of the farmers and ensure its availability at their doorsteps and for technical help for different crops. Banks also provide loans to farmers for seasonal crops at their doorsteps, under one window operations. Q.24. Banks are vigorously going for car leasing business. Can’t such facility be extended to farming / rural community by providing agricultural machines/equipments / implements including tractor on leasing, hiring, rental basis? Answer: The SBP has already allowed the banks to extend leasing facilities to the farmers under the scheme for tube wells, tractors, harvesters etc. if these are free from all encumbrances. These machines/equipments / implements are also available to the farmers on hiring, leasing and rental basis through Leasing Companies. Q.25. What type of data is contained in the publication “Agricultural Statistics of Pakistan”? Answer: “Agricultural Statistics of Pakistan 2005-06” contains data on area, Production of agricultural commodities, land use, agricultural inputs, mechanization, livestock, fisheries, forestry, trade, prices, and miscellaneous statistics regarding agriculture. This booklet can be viewed on www.minfal.gov.pk. Q.26. Which publication could be referred to have import and export statistics of fruit, vegetable and condiments with destination and sources? Answer:The publication namely “Fruit Vegetable and Condiments of Pakistan” is referred for this purpose the same may be perused on www.minfal.gov.pk.
Q.27: Where from District Wise Area Production of Crops can be seen? Answer:The District Wise area and production of 54 major/minor crops including fruit, vegetables and condiments can be seen from this wing’s publication “Crops area Production (By District)” Q.28: What type of information/data is provided to FAO? Answer:FAO supplies more than 15 questionnaires around the year. These questionnaires have data of area production of crops, oilseed pulses, condiments, fruit, vegetables prices of agricultural commodities, fertilizer. These questionnaires are filled in according to the requirement of the question and returned back to FAO. Q.29: Which international agencies demand for furnishing of data? Answer: SAARC, FAO, Asia Pacific, IMF and ECO request for supply of data according to their needs/ requirements. Q.30: Who are the end users of Economic Wing’s data? Answer: Researchers, planners, policy makers, students, farmers and mill/factories owners are the end user of Economic Wing’s data. Q.31: Which publication is referred for item wise, province wise Area Production of Fruit, Vegetables and Condiments? Answer:The publication namely “Fruit Vegetable and Condiments of Pakistan” is referred and can be viewed on MINFAL’s website. Q.32: When Kharif crops final estimates are released? Answer: MINFAL’s Economic Wing is responsible for the preparation and release of the final estimates of cotton, sugarcane, rice, maize, kharif pulses, jowar, bajra, kharif fruit and vegetables. Economic Wing MINFAL finally notifies these estimates by 30th June every year for circulation among Federal/Provincial Government Departments/Autonomous Bodies. Q.33: When Rabi crops final estimates are released? Answer:Likewise Kharif estimates MINFAL’s Economic Wing is also responsible for the preparation and release of wheat, barley, oilseed, masoor, matter and other rabi crops Economic Wing MINFAL finally notifies these estimates by end of every year for circulation among Federal/Provincial Government Departments/Autonomous Bodies Q.34: What is the Area Production and Yield of major crops? Answer: Refer to following table Nos. of this Wing’s publication “Agricultural Statistics of Pakistan 2005-06” available on MINFAL’s website. Table No. 3 for Wheat Table No.6 for Rice, Table No. 8 for Maize, Table No.13 for Sugarcane, Table No.14 for Cotton,
Q.35: What is the Area Production and Yield of Important Minor Crops? Answer: Refer to following table Nos. of this Wing’s publication “Agricultural Statistics of Pakistan 2005-06” available on MINFAL’s website. Table No.9 for Bajra, Table No.10 for Jowar, Table No.11 for Barley, Table No.18 for Tobaccoo, Table No.41 for Potato, Q. 36: What are the Area Production and Yield of Pulses? Answer: Refer to following table Nos. 21 to 28 of this Wing’s publication “Agricultural Statistics of Pakistan 2005-06” available on MINFAL’s website. Q.37: What are the Area Production and Yield of Oilseeds? Answer: Refer to following table Nos. 29 to 34 of this Wing’s publication “Agricultural Statistics of Pakistan 2005-06” available on MINFAL’s website. Q. 38: What are the Area Production and Yield of Important Condiments? Answer: Refer to following table Nos. 35-40 of this Wing’s publication “Agricultural Statistics of Pakistan 2005-06” available on MINFAL’s website. Q.39: What are the targets of important crops for the year 2006-07? Answer: Refer to table No. 60 of. “Agricultural Statistics of Pakistan 2005-06” available on MINFAL’s website. Q. 40: What is the percentage sowing of different groups of crops during the year 2005-06? Answer: Refer to table No. 62 of “Agricultural Statistics of Pakistan 2005-06” available on MINFAL’s website. Q.41: Provide the information about area irrigated by different sources? Answer:Refer to table No. 64 of “Agricultural Statistics of Pakistan 2005-06” available on MINFAL’s website. Q.42: What is the intensity of water logging and salinity in Pakistan? Answer: Refer to table No. 74 of “Agricultural Statistics of Pakistan 2005-06” available on MINFAL’s website. Q.43: Provide the information regarding consumption, production and import of fertilizers? Answer: Refer to table No. 76-85 of “Agricultural Statistics of Pakistan 2005-06” available on MINFAL’s website. Q.44: How much water is available for irrigation at farm gate? Answer: Refer to table No. 86-A of “Agricultural Statistics of Pakistan 2005-06” available on MINFAL’s website. .
Q.45: Is there any record of rainfall at different stations? Answer: Refer to table No. 87 of “Agricultural Statistics of Pakistan 2005-06” available on MINFAL’s website. Q.46: How much pesticides were consumed in Pakistan during 2006? Answer: Refer to table No. 91 “Agricultural Statistics of Pakistan 2005-06” available on MINFAL’s website. Q.47: How much electricity and petroleum products were consumed in agriculture sector during 2005-06? Answer: Refer to table No. 119-120 “Agricultural Statistics of Pakistan 2005-06” available on MINFAL’s website. Q.48: What is the livestock population in Pakistan? Answer: Refer to table No. 121-122 of “Agricultural Statistics of Pakistan 2005-06” available on MINFAL’s website. Q.49: Is there any statistical data regarding livestock products? Answer: Refer to table No. 123-125 of “Agricultural Statistics of Pakistan 2005-06” available on MINFAL’s website. Q.50: Provide a brief information regarding import/export of major agricultural commodities? Answer: Refer to table No. 137-142 of “Agricultural Statistics of Pakistan 2005-06” available on MINFAL’s website. Q.51: What are the support/intervention prices of wheat, rice, cotton and sugarcane? Answer: Refer to table No. 143, 144 & 145 of “Agricultural Statistics of Pakistan 200506” available on MINFAL’s website. Q.52: What is the per capita availability of major food items in Pakistan? Answer: Refer to table No. 167-173 of “Agricultural Statistics of Pakistan 2005-06” available on MINFAL’s website. Q.53: What is the share of agriculture sector in PSDP/ADP in provinces? Answer: Refer to table No. 181 of “Agricultural Statistics of Pakistan 2005-06” available on MINFAL’s website. Q.54: Which crops are taken in cereals? Answer:The following six crops are taken in cereals crops 1. Wheat, 2. Rice, 3. Jowar( Sorghum), 4. Maize, 5. Bajra (Millet), 6. Barley.
Q.55. Is there any guidelines issued by SBP for financing to livestock and fisheries sector? Answer: SBP has issued guidelines for livestock and fisheries sector financing which can be seen on their website www.sbp.org.pk/departments/acd.htm. Q.56. What is Corporate Agriculture Farming (CAF)? Answer: Corporate Agriculture Farming (CAF) is sustainable growth in the agriculture farming system on the pattern of industry by combining agriculture and processing activities at one place. Q.57. Is there any Government sanction required to undertake CAF except registration with BOI? Answer: No registration/permission is required by the government to undertake CAF. However, company is required to be registered with Board of Investment (BOI) and Security and Exchange Commission of Pakistan (SECP). Q.58. Is there any legal entitlement for Corporate Farms? Answer: Only such local and foreign companies are entitled that are locally incorporated under the Company’s Ordinance 1984 with agriculture base. Q.59. Is there any tax on Corporate Farms? Answer: There is no tax applied on corporate farms? Q.60. What is the import duty on machinery imported for CAF purposes? Answer: There is no import duty on machinery imported for CAF purposes. Q.61. What is upper limit of land ceiling for CAF? Answer: There is no upper limit of land ceiling for CAF. Q.62. Is there any duty on transfer of land? Answer: All provinces have waived off one time stamp duty on transfer of land for CAF purpose. Q.63. Is there any policy package for CAF? Answer: Yes, the following points have been approved for CAF: 1. Only such local and foreign companies will be entitled to Corporate Agriculture Farming that are incorporated in Pakistan under the Companies Ordinance, 1984. 2. There may not be any upper ceiling on land holding for CAF by amending relevant laws. The size of the proposed corporate farm may be left to be determined by the prospective investor. 3. Agriculture Income Tax regime applicable in provinces, on income from agriculture, would be applicable to Corporate Agriculture Farming. 4. Tax relief in shape of First Year Allowance of 75% of machinery cost be allowed to set-off provincial AIT. 5. Labour laws may not be presently applicable to corporate agriculture companies. Due to special circumstances of the agriculture sector however appropriate labour laws be developed for this sector within five year.
6. Zero-rated duty be charged on import of agriculture machinery and equipment and also exempted from Sales Tax. 7. Machinery items for wheat/grain storage and cool chain may be included in SRO 437(I)/2001. 8. Wherever possible, state land may either be sold or leased to the investors for 50 years, extendable for another 49 years. Preference in this respect will be given to cultural wastelands, which is otherwise fit for cultivation. 9. Duty on transfer of land to CAF will be exempted. 10. 100% foreign equity will be ultimately allowed (in the CAF). 11. No Government sanction required undertaking CAF except registration with BOI. 12. Exemption of the dividends (of CAF companies) from tax. Q.64. What are the areas of investment for CAF? Answer: Following are the areas of investment for CAF: 1. Land development/reclamation of barren land, desert and hilly areas for agriculture purpose and crop farming. 2. Reclamation of water Front Areas/ Creeks. 3. Crops, Fruits, Vegetables, Flowers Farming/Integrated Agriculture (Cultivation and processing of crops). 4. Processing of agriculture products. 5. Modernization and development of irrigation faculties and water management. 6. Plantation/Forestry. 7. Dairy, small ruminants (sheep, goat) and all other livestock farming.