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Floods

Pakistan Business Forum Urges Government to Act on Agricultural Emergency Plan

Strategic Insights

— 2 min read

The Pakistan Business Forum (PBF) has criticized the government's inaction on an agriculture emergency plan, calling for sweeping interventions to protect farmers hit by the recent floods. The PBF has urged the government to fast-track relief measures, including a guaranteed wheat support price, a waiver of electricity bills for agricultural consumers, and interest-free loans to help mitigate the impact of the floods. The forum has also warned that delays will worsen food insecurity and destabilize rural economies, while the country may face food import pressures of almost $1.93 billion in fiscal 2026 and inflation could accelerate to 7.2 per cent.

Key Takeaways:

  • The Pakistan Business Forum (PBF) has urged the government to implement an agriculture emergency plan to protect farmers hit by the recent floods.
  • The PBF has called for a guaranteed wheat support price for the 2025-26 seasons, a full waiver of electricity bills for agricultural consumers in flood-affected areas from August to October, and interest-free loans of up to Rs2 million to help mitigate force majeure conditions.
  • The forum has also asked the government to engage the Pakistan Sugar Mills Association to secure fair procurement rates for the sugarcane harvest due in November.
  • Additional recommendations include a two-year sales tax exemption for domestic cotton and a suspension of the normal tax regime on rice and mango exports from December 2025, extending relief under the Finance Bill 2024.
  • The PBF has warned that delays will worsen food insecurity and destabilize rural economies, while the country may face food import pressures of almost $1.93 billion in fiscal 2026 and inflation could accelerate to 7.2 per cent.
  • The forum has urged the government to seek IMF support for the measures, citing both humanitarian needs and the imperative to stabilize the rural economy.
  • Copies of the letter were sent to the minister for national food security, emphasizing that the measures are essential to compensate farmers, revive production, and build long-term resilience in the face of intensifying climate risks.

Statistics:

  • Food import pressures: almost $1.93 billion in fiscal 2026
  • Inflation: could accelerate to 7.2 per cent from earlier estimates of 5.5 per cent
  • Demand for interest-free loans: up to Rs2 million to help mitigate force majeure conditions
  • Power suspension: full waiver of electricity bills for agricultural consumers in flood-affected areas from August to October
  • Economic impact: threatens national food security and jeopardizes the economic stability of rural communities

Sources:

  • [Source not explicitly mentioned in the original text]

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