ISLAMABAD, June 10: President General Pervez Musharraf on Thursday unveiled a package of incentives for farmers to prompt growth in the agriculture sector , particularly bringing down the ZTBL's loan mark-up rate from 14 per cent to 9pc from July 1.

Addressing a Kissan Convention, the president also announced the launch of a Rs66 billion crash programme from next month for lining 87,000 watercourses across the country in next four years.

The salient features of the package included abolition of customs duty on agricultural implements, establishment of tractor plants, and permission to import tractors below 35hp and above 100hp with no GST or withholding tax. The importers will have to pay a 10pc import duty only.

The farmers, who return their loans within the stipulated time, will be charged only 8pc mark-up. The rate of 9pc will be charged on all types of new loans. The ongoing tractor and tube-well loans will also be charged at 9pc.

Under the package, the loans up to Rs500,000 defaulted beyond Dec 31, 2000, will stand fully settled on the payment of 50pc of the amount outstanding. The concession will benefit 250,000 farmers approximately.

The president directed the authorities that a special concession be provided to farmers in the calamity-hit areas of Balochistan. He announced that the loans up to Rs200,000 in the calamity-hit areas of Balochistan, defaulted beyond Dec 31, 2000, shall stand settled on the payment of 25pc of the principal amount outstanding.

He declared that the Zarai Taraqiati Bank Ltd (ZTBL) shall no longer exercise the special powers, given to it under the Land Revenue Act, under which it used tehsildars and police to arrest people for not returning their loans.

"From this day onwards no farmer will ever again have to suffer the humiliation of a ZTBL arrest and imprisonment for non-payment of loans." The ZTBL will announce details of the package shortly.

Gen Musharraf expressed the hope that the package would lead to fast growth in the agriculture sector and said the entry of commercial banks in agriculture credit would also help boost the sector. "Today the total agricultural credit has reached Rs65 billion and by next year it will increase to Rs100 billion," he pointed out.

WATER PROJECTS: He said the government was conscious of the importance of water in the farm sector and added that many projects had been initiated to develop water resources, such as raising the height of Mangla Dam, construction of Gomal Zam Dam, Mirani Dam, Subak Zai Dam and Satpara Dam.

Similarly, he said, Thal, Rainee and Kachi Canals were being constructed to take water to areas where huge quantities of land remained uncultivated. He said some 2.88 million acres would become available for cultivation once these projects were completed.

"It will provide quantum jump to agricultural growth, increasing farmers' income, providing more jobs to rural work-force and reducing rural poverty." The president emphasized that the country would need two large dams in next 15 years to meet a growing water requirement.

He said that in order to allay the fears of provinces and develop a consensus he had held meetings in Karachi, Jamshoro and many other parts of the country. "Two committees were set up in this connection: one parliamentary and the other technical.

"These (committees) have been carrying out their work and we will, Inshallah, achieve consensus and take a decision on the building of a reservoir within this year," he said. Referring to the wheat requirement, Gen Musharraf said that till 1999 Pakistan used to import 2 to 4 million tons of wheat every year.

"In 1999, we decided to give incentive to farmers by increasing the support price from Rs240 per 40kg to Rs300. By the grace of Allah, the country harvested a bumper crop that year and a record 21.1 million ton wheat was produced."

It was for the first time that the country attained self- sufficiency in its wheat requirements, he said and added that this positive trend continued and during the past three years the country had not only met its domestic demand but had also exported 1.7 million tons.

The president said that many projects were being run to increase cotton productivity, manage its diseases and improve its quality. A cotton standardization programme was being run to improve cotton standards, he added.

He referred to the three-year loan revolving facility of the State Bank, saying as a result of that the farmers would have bargaining powers as they would no longer be under pressure to return loans soon after crop cultivation.

FARMERS' PROPOSALS: Commenting on the proposals floated by the farmers from the four provinces, the president agreed with the community that livestock breeding offered tremendous prospects for business.

He asked the farmers to explore new agro-based areas for expanding the output. He said value-added dairy products, including milk and cheese, promised great returns. He endorsed calls for electrification of villages but pointed out that owing to expensive deals with IPPs, Wapda had to pay them hefty amounts each year.

Extending his support to health and education projects for farmers, he said that federal, provincial and district governments would have to coordinate their efforts to boost the agriculture sector and lift the lot of the farmers community.

The president announced the appointment of Jahangir Khan Tareen, MNA, as the chief coordinator of the president's programme of water lining. The programme will be launched on July 15 and proceed simultaneously in all the provinces. "This project will generate about 100,000 employment opportunities for people and avert wastage of water to the enormous benefit of the nation," he said. -APP