Azeem Ahmed Khan

The All Pakistan Fruit and Vegetable Exporters Association (PFVA) has expressed disappointment over the Federal Budget 2025–26, stating that no relief has been provided to the agriculture sector despite its critical importance to the national economy. “Agriculture is the backbone of the economy, yet no relief package has been announced for the sector in the federal budget,” Patron-in-Chief of PFVA, Waheed Ahmed, told WealthPK.

He noted that the sector continues to face severe challenges such as water scarcity, rising production costs, lack of research and development, and the absence of modern infrastructure like packhouses and warehouses—all of which have been overlooked in the new fiscal plan.

He emphasized that the budget fails to address fundamental issues, including the need to promote low water-consuming crops, develop horticulture through the introduction of new fruit and vegetable varieties, and establish new orchards. “None of these key areas have been granted any incentives,” he lamented.

Highlighting the growing threat of climate change, Waheed said it remains the biggest challenge confronting the agriculture sector, yet the federal government has allocated only a negligible budget to mitigate its impacts. The PFVA chief also criticized the government for failing to support and incentivize export growth.

“The budget lacks any meaningful support for increasing fruit and vegetable exports,” he noted. He pointed out that food insecurity is worsening in Pakistan, making it essential to enhance domestic production and generate foreign exchange by exporting surplus produce. However, the budget provides no facilities for the promotion of horticultural exports.

Instead of offering export incentives, the government has announced duty cuts and imposed additional taxes on imported materials—a move that Waheed warned would further inflate the country’s import bill. Waheed urged the government to revisit its approach to the agriculture sector and implement targeted incentives to strengthen production and boost exports, which are vital not only for the farming community but also for the country’s economic stability.

Chief Organizer of the Pakistan Business Forum, Ahmed Jawad, also voiced dissatisfaction with the federal budget, stating that it failed to provide any relief to the agriculture sector. He criticized the budget for not aligning with the prime minister’s vision, noting that it overlooks the needs of the sector. He questioned how the government can aim for 4.5% agricultural growth without taking concrete steps.

Ahmed Jawad pointed out that expectations were high for a substantial cut in the super tax. However, the actual relief was minimal, he added. He expressed concern over the new tax collection target of Rs14,131 billion, cautioning that such an ambitious goal could trigger further inflation. He also noted the absence of a comprehensive plan to expand the tax base, which has been a consistent demand from stakeholders.

Despite the criticism, Ahmed praised the reduction in the regulatory duty from 90% to 50%, calling it a significant and commendable change in the duty structure. The Pakistan Business Forum represents and supports the business community in Pakistan. It focuses on promoting economic growth, influencing government policies in favor of businesses, and fostering both local and international trade and investment.

Credit: INP-WealthPk