Agriculture Sector of Pakistan

Opportunities and Tax Regime

Pakistan-Land of Oldest Civilization
Overview
Strengths
Land of Five Rivers and Mighty
Glaciers

Huge Market of 220 Million People

Vast Area of 796096 square KM

Young and Cost effective Labor Force

Export Oriented Agriculture Products

Major Crops of Pakistan

13.00
25.60

Wheat
Rice
4.20 Sugarcane
Cotton

63.70
Unit: Metric Tons
Basmati Rice
Basmati Rice is produced in
Punjab Province

One of finest types of Rice

Taste and fragrance is

unmatched
Livestock

200 Million Livestock

60 Million Tons Production of

Milk

5 Million Tons Meat Production

Livestock
Other Livestock products include eggs, hide,
skin wool etc

Pakistan is fourth largest Milk Producing Country

after India, US and China,

60 million tones production of milk every year

Pakistan remains far below in exports

of dairy products when compared with its
contemporary counterparts
Poultry
Poultry is one of most vibrant sector
worth 1,168 billion ($ 7.5 billion)

Poultry sector generates employment

and income for about 1.5 million people

Above 8% sustainable growth rate

Pakistan is among top ten poultry

producers
 Major Fruits
Mango
Citrus
Apple
Apricot
Dates
Peach
Banana
Plum
Pear
Walnut
Almond
Melons
 Agro Based Industry in Pakistan
Cotton and Textile Industry
Wheat Flour Industry
Rice Industry
Sugar Industry
Maize Processing Industry
Pulses Industry
Fruit processing Industry
Fruit processing Industry
Vegetable Ghee and Oil Industry
Dairy Industry
Poultry Industry
Leather Industry
Tobacco Industry
Tea Industry
Seed Industry
Support Price
Government fix price of four
major crops

Wheat, Rice, Sugarcane and

Cotton

The purpose is to guarantee

minimum price to farmers
Defining Agriculture Income

Income from Rent of Land

Agriculture • Rent of Building
output used for storage
of output
• Crop
Taxation Regime on Agriculture Sector
Pakistan Agriculture Sector Contributes
19 % to GDP

Agriculture accounted for less than 1

percent of provincial taxes

Agriculture Sector accounted for 0.09

percent of federal taxes in 2018

The Agriculture Sector is under-taxed and

over-subsidized in Pakistan
 Agriculture Tax and Subsidies in
Pakistan ($ per hectare)
The subsidies in the agriculture sector outweighed the agriculture
income tax by a factor of 24 in 2017
Historical Perspective-Taxation Regime on
Agriculture Sector

Under British Rule in Indian subcontinent ,

Agriculture was exempted from Income Tax

Pakistan has continued with this legacy under all three

of its Constitutions (1956, 1962, and 1973)

The primary purpose of Tax Free regime is to ensure

food security and employment
Taxation Regime on Agriculture Sector
 Agriculture Tax Act 1997 (Area Based)
land ownership Tax

12.5 acres land No Tax

ownership
12.5 acres to 25 acres Rs.100 per acre

26 acres to 50 acre Rs.250 per acre

50 acres or more Rs.300 per acre *

Opportunities:
 Government of Pakistan is looking for import substitution by
bringing innovation in the agriculture sector
 Different countries are now focusing on agriculture sector in
Pakistan
 Netherlands has extended its support for improving
agriculture and agro-businesses
 US agro-giant, Cargill announced an investment of $200
million in Pakistan’s agriculture sector
 Cargill will bring world-class innovations to support the
flourishing and already modernizing dairy industry in
Pakistan
Opportunities:
 Under the Banner of CPEC, China will build agro Industries
and help agriculture sector in research and technological
Improvements
 Under CPEC, private-public collaboration for agricultural
sector improvement is also considered by authorities
 government approved projects worth Rs250 billion for the
uplift of agriculture sector in September, 2019
 With focus on enhancing crop productivity and improving
the means and resources for better farming
Opportunities:
 Rice Export has been increased by 30% in 2018
 Storage and value addition in fruits
 With the investment in processing, storage and
transportation of dairy product, Pakistan can become
leading dairy products exporter being 4th largest milk
producing country in the world
 With the enhanced focus and investment in poultry
products’ packaging and by ameliorating quality, Pakistan
has capacity to become potential exporter of meat products
to EU (largest meat importer market)
Prime Minister’s Agriculture
Emergency Program
 Productivity Enhancement of Wheat, Rice & Sugarcane
 Oilseeds Enhancement Program
 Conserving Water Through Lining of Watercourses
 Enhancing Command Area of Small and Mini Dams in
Barani Areas
 Water Conservation in Barani areas of Khyber
Pakhtunkhwa
 Shrimp Farming
 Cage Fish Culture
 Trout Farming in Northern Areas of Pakistan
 Save & Fattening of Calf Program
 Backyard Poultry Program Under this Program a number of
projects
Q&A