KARACHI: In the face of unprecedented flooding that has devastated vast swathes of Pakistan’s farmland, the Pakistan Business Forum (PBF) has written to Federal Finance Minister Muhammad Aurangzeb, urging the immediate formulation and approval of a comprehensive relief package to rescue the country’s agricultural economy from collapse.
Terming the situation a national emergency, the PBF emphasized that the agriculture sector—already under pressure—has now entered a dangerous downward spiral, posing grave threats to both food security and the economic sustainability of rural communities.
Addressing the Finance Minister, PBF President Khawaja Mehboob ur Rehman called for the Ministry of Finance to immediately place a summary before the Economic Coordination Committee (ECC) for approval of a targeted set of relief interventions.
These include the introduction of a guaranteed wheat support price for the 2025–2026 seasons, a complete waiver on electricity bills for flood-hit agricultural consumers covering August to October, and interest-free agricultural loans of up to PKR 2 million against pledged land to mitigate force majeure conditions faced by farmers.
The letter also urges the government to approve a 30% subsidy on Urea and DAP fertilizers for affected zones and also to engage the Pakistan Sugar Mills Association (PSMA) to offer favourable procurement rates for the upcoming sugarcane harvest in November.
To boost the recovery of key affected crops, the PBF recommends a two-year GST exemption for the domestic cotton sector and a suspension of the normal tax regime on rice and mango exports, effective from December 2025, as a continuation of relief measures introduced in the Finance Bill 2024.
While recognizing the fiscal constraints such measures may impose, the PBF emphasized that the severity of the crisis warrants exceptional action. The Forum has encouraged the Ministry of Finance to raise these proposals with the International Monetary Fund (IMF), citing both humanitarian urgency and economic necessity.
“The proposed measures are not merely compensatory—they are essential for triggering a revival of agricultural productivity and restoring confidence among farming communities,” Rehman stated. “We remain committed to supporting the government’s efforts during this critical time and trust that swift action will follow.”
A copy of the letter was also sent to the Federal Minister for National Food Security. As Pakistan confronts increasingly frequent climate-related disasters, the PBF's appeal underscores the urgent need for integrated policy responses that can both alleviate immediate suffering and lay the groundwork for long-term agricultural resilience.
Copyright Business Recorder, 2025
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