The federal government is weighing proposals to provide major financial relief to farmers devastated by recent floods. At the heart of the discussion is Zarai Taraqiati Bank Limited (ZTBL), the state-owned bank that serves as a lifeline for much of Pakistan’s agriculture sector. Officials confirmed that options include rescheduling loans, waiving interest payments, or even writing off debt entirely for flood-hit farmers.
The matter emerged under review during a high-level cabinet meeting chaired by Prime Minister Shehbaz Sharif, where ministers kept on giving warning that wheat growers—already battered by low market prices during the 2024–25 season—may be unable or unwilling to plant crops again without immediate government support.
Balancing Short-Term Relief with Long-Term Reform
Ministers argued that while farmers need urgent cash-flow relief, the government must avoid knee-jerk measures that could benefit hoarders or traders instead of the growers themselves. They suggested reviving the support price mechanism, but with careful timing to ensure that farmers, not middlemen, reap the benefits.
The meeting also highlighted that agriculture and climate change are shared responsibilities between provinces and the federal government. Any new relief package, they stressed, must be designed with provincial buy-in, both in terms of funding and implementation.
Read more: Reviving Pakistan’s rural economy after flood devastation
Impacts on Agriculture and Climate Preparedness
Cabinet members emphasized that the crisis is not just about one bad season—it reflects a deeper vulnerability in Pakistan’s agricultural system. They called for a dual kind of strategy:
Short term Impact: Provide immediate debt relief so farmers would be able to recover from losses and confidently sow the upcoming wheat crop, ensuring food security.
• Long-term impact: Introduce structural reforms to make agriculture more resilient to climate shocks like floods and droughts.
To move forward, the cabinet kept on urging that the Pakistan Climate Change Council to meet urgently and craft a coordinated national strategy. Ministers also shed light upon rapid population growth as an added strain, making food and resource security even harder to guarantee.
Way Forward
- A proposal was floated for a high-level committee was headed by the planning minister and supported by provincial chief secretaries—to chart a clear action plan.
- If this gets approved, the relief is going to help to reduce the burden on struggling farmers
- It will also provide Pakistan transition toward a more climate-resilient and food-secure future.