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Govt takes new initiative to revive agriculture sector: Jamote

ISLAMABAD: The present government has taken new initiative to revive the agriculture sector, which has assumed renewed priority in the context of poverty alleviation.

This was stated by Minister for Food, Agriculture and Livestock, Shafqat Ali Shah Jamote at 23rd session of the Governing Council of International Fund for Agricultural Development (Ifad), held in Rome, Italy, from February 15 to 17, says a fax message received here on Thursday.

The minister in his statement said the government's initiative revolves around six parameters which include alleviation of rural poverty, sustainable agriculture, social equity, self-reliance, enhanced productivity and export orientation.

To achieve these objectives, the minister said, the plan of action aims at:-

a) Institutionalising reforms, promoting institutional development and bringing social and economic equality to the agrarian structure.

b) Conserving and developing natural resources.

c) Alleviation of poverty through rural food security.

e) Increasing productivity of crops sector, livestock, fisheries and forestry sector.

f) Evolving an appropriate strategy to exploit export potential.

He said the government has recently approved a Poverty Alleviation Plan of a size of Rs 15 billion through re-prioritisation of the country's Annual Development Programme and adjustment in the non-development expenditure including the defence budget.

The plan includes: i) revitalisation of social safety net system including the food stamps programme and Zakat and Ushr: ii) establishment of a Micro Credit Bank for providing loans through community organisations and NGOs involved in this field; iii) financing of public works in rural and urban areas that lead to creation of assets for the poor and facilitate disaster mitigation.

The minister expressed his belief that this focus on poverty alleviation within a reoriented institutional framework would enable the country to mitigate the adverse impacts of structural adjustments on the poor and perhaps form the basis of a sustained fight against poverty.

Jamote further said, "we hope that all the bilateral and multilateral agencies including Ifad would join hands with us in a partnership towards this end".

The minister said problems being faced by the developing countries, both on the domestic front and the international horizon, pose daunting challenges to the developing countries.

The rapid population growth, growing indebtedness, the yawning gaps in balance of payments, high volatility of the international commodities markets, major price distortions and natural and man made disasters are threatening the development process in these countries, he said.

He said poverty, hunger and food insecurity continue to loom large, adding, over three billion people live on less than two dollars a day while over one billion live in abject poverty and over 800 million people do not have enough food to eat.

In Pakistan alone, the minister said, 37 percent of the population lives below the poverty line Ñ a situation which continues to worsen on account of structural adjustment programmes and recession. "I am sure many other developing countries share our predicament", he said.

In this scenario and within the context of poverty alleviation, Jamote said, agriculture has assumed a renewed priority as it directly or indirectly touches the largest number of people in the country.

The minister said it is the single largest income generating sector in the country contributing about 25 percent of the GDP and employing about 50 percent of the population.

Agricultural exports constitute 68 percent of the total exports and 58 percent of the industry is based on agricultural commodities, the minister said, adding the sector, however, continues to face stagnation.

The minister said, during 1998-99 this sector achieved a low growth rate of only 0.35 percent, adding, the growth of major crops declined to 0.6 percent and of minor crops to 0.36 percent.

Livestock, fisheries and forestry sectors also exhibited low growth rates, while public sector investments in Agriculture Sector also remained low, the minister added.

He said, "we have commended Ifad's involvement in the heavily indebted Poor Countries Debt Initiative at the last Governing Council's meeting held in Cologne". "We cannot however, support participation in this initiative at the cost of financial integrity of Ifad or its regular lending programme level.

The resources for the initiative and its enhancement must flow over and above those required for maintaining a credible lending level, the minister said. "We, therefore, join in the appeal to the donors to find additional ways and means for financing Ifad's contribution to the enhanced level of the Heavily Indebted Poor Countries Debt Initiative".

The minister further said, "we had also welcomed the setting up of the consultation to review the adequacy of the resources available to the Ifad". The consultation process set in motion last year has come a long way in attaining a meaningful consensus on many thorny issues, he added.

The minister, however, said, a lot more needs to be done to complete the process, adding, "we, therefore, exhort all member nations to do their utmost to ensure its early completion".ÑAPP