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COVER STORY
THE WATER CRISES

!title15.jpg (36185 bytes)Adverse effects of the current spell of water shortage are not immediately visible on the economy due to better results produced by the agriculture sector last year. However the severe pinch may be felt next year as the water shortage has forced the government to drastically reduce the agriculture targets for the current season. Federal government has however briefed the diplomats of the Western Countries and G-7 countries about the serious fall out of the water shortage on the national economy.


WATER SHORTAGE AND AGRICULTURE
The severe water shortage has resulted in the downward revision of targets of major crops in addition to delayed sowing of all-important cotton, and possible rice and sugarcane in Sindh. PAGE talked to Secretary Agriculture Sindh, Hashim Leghari, about the impact of water crisis on agriculture and various measures/proposals to help lessen an all-out catastrophy.


GST ON UREA
Any attempt to impose GST on urea can only impede the prospects for adding 2.5 million tonnes/per annum capacity. Fresh investment is dependent on a minimum ROE. It may be right that CBR wants more revenue but the option has to be evaluated against its repercussions. The delay in announcing fertilizer policy has compelled the existing players to defer their expansion plans.