Corporate Farming

The Potential of Pakistan Corporate Agriculture Farming

Pakistan’s Agriculture Base: Strengths
• Abundant agricultural land
Total area 79.6 Mn Hectares (MH)
Cultivated area 22 MH
Irrigated 18 MH
Rainfed (Barani) 4 MH
• Contribution to economy
 26% to GDP
 Employs 44% of labour force (16.35 Mn)
 70% of exports (Agri-produce & processed products)
• Natural Merits
 4 seasons, tropical weather
 Crop production throughout the year
 Largest canal irrigation network
 Vast tracts of land along Indus Basin - comprising 5 rivers
 Centuries old farming culture
• Amongst the lowest cost producers
 Cost effective and hardworking agricultural manpower
 Low cost irrigation water
 Reasonable price of land
 Farm to market road network
 Competitive cost of inputs
• Crops production
Wheat 21 Mn tons
Cotton 11 Mn bales
Rice 5 Mn tons
Sugarcane 50 Mn tons
Fruits/Vegetables 10 Mn tons
• Fisheries & Livestock production
Fisheries potential (annual catch) 7.5 Mn tons

Buffaloes (Number)
23 Mn
Cattle (Number) 22 Mn
Sheep & Goats (Number) 75 Mn
Poultry (Number) 530 Mn
• Country side
  Traditional but simple culture
 Inspiring music
 Lively folk
• Strategic location
 Located in food deficit region:
 Central Asian Republic (North)
 Middle East (South)
 Iran & Afghanistan (West)
 Principal gateway to CARs
 Strong historical & traditional links
• Strong Potential
 Comparative advantage in the region
 Vast areas of cultivable waste land available
 Strong potential for expansion of agriculture base
Corporate Agriculture Farming (CAF):
Objectives
• Large local market increasing at 29% per year
• Internationally competitive unit cost of production for all major crops, fruits &
vegetables
• High quality agricultural products due to favourable resource base
• Low transportation cost, and developed routes to Middle East, Iran, Afghanistan
and CARs
• International Quality inputs available in country
• Market driven polices. Least Government interventions

Investment Policy, Incentives & Opportunities:

Most Liberal Investment Policy:

• CAF declared as an industry
 100% foreign equity allowed
 No minimum foreign investment
 Remittance of capital, profits, dividends allowed
 CAF will enjoy credit & other facilities
 Local or foreign, private or public limited companies to invest in corporate farming
• No ceiling on land holding
• State land can be purchased, or leased for 50 years, and extendable for another 49 years
• All banks and financial institutions will earmark separate credit share.
Attractive Fiscal Incentives:
• 0% Customs duty on import of agricultural machinery, equipment and implements (not
manufactured locally) New or used
• Exemption of duty on transfer of land for CAF (under consideration)
• Tax relief: First Year Allowance @ 75% of PME cost
• In Addition:
 Provincial Agriculture Income Tax (AIT) laws provide for proportionate liability of
corporate shareholders
 Dividends from corporate agricultural farms (for non-industrial activities) not subject to tax
 Farm income given more favourable treatment than non-farm corporate incomes because
of the risk/uncertainty associated with farming
 Existing definitions of farming activity, as distinct from processing/industrial activity,
continue to be maintained.
Investment Opportunities:

• Land development/reclamation of barren, desert and hilly land for

agriculture purpose and crops farming
• Reclamation of water front areas or creeks
• Crops, fruits, vegetables, flowers farming/integrated agriculture
(cultivation and processing of crops)
• Modernization and development of irrigation facilities and water
management Plantation
• Forestry
• Horticulture
• Dairy farming
• Livestock farming, breeding and small ruminants (sheep, goat)
• Production of quality seeds
• Fruits, Vegetables & flowers – grading, processing, packaging, preservation
• Seafood (farming/fishing, processing and preservation of fish, shrimps and other marine
products)
• Agri-produce storage facilities (separate package)
• Marketing/Export of Agri-produce (separate package)
• Cool Chains (separate package)

Source: Pakistan Board of Investment