National Bank of Pakistan and United Insurance Company (UIC) have entered a deal to support the agriculture sector of the country. According to the deal, the UIC will provide insurance cover to agriculture and livestock farmers so that they can be saved from losses.
Speaking at the occasion, Chairman of the United International Group Mian MA Shahid said that we initiated crop and livestock insurance in the country which resulted in record growth. We consider serving farming communities and saving them from shocks as a social work which has helped our company a lot.
Mian Shahid said that agriculture sector is prone to price and climate shocks for which an insurance cover is imperative. He noted that the share of agriculture has reduced to just 18 percent from 21 percent.
Still, he said, this sector is providing jobs to 42 percent of the labour while 75 percent of exports are linked to this sector.
The business leader informed that country’s 64 percent population lives in rural areas which are tied to the agriculture sector which include four million livestock farmers.
He noted that Pakistan produces 38 percent of wheat per acre as compare to France, 29 percent rice as compared to US yield and almost half cotton as compared to China. During the last twenty years, Brazil has increased agricultural production by 400 percent but the situation at home is not satisfactory.
Stabilized prices of seed, fertilizer, insecticides, and provision of cheap energy can help boost the agriculture sector, he said.