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.
