LAHORE: Amidst devastating floods that have crippled Pakistan’s farmlands, the Pakistan Business Forum (PBF) issued a stern call for the immediate execution of a long-delayed agriculture emergency plan. The PBF criticized the inaction, noting that “agriculture emergency is still on papers,” and questioned when real implementation will begin.
Terming the situation, a national emergency, the PBF emphasized that Pakistan’s agriculture sector, already struggling under economic pressures, has now entered a dangerous downward spiral. This decline, the Forum warned, poses grave threats to national food security and jeopardizes the economic stability of rural communities, many of which are still reeling from the impact of recent climate-related disasters.
In a letter addressed to the Finance Minister Muhammad Aurganzeb, PBF President Khawaja Mehboob ur Rehman urged the Ministry to may submit a summary before the Economic Coordination Committee (ECC) for approval of targeted relief measures.
Among the proposed interventions are the introduction of a guaranteed wheat support price for the 2025–2026 seasons, a complete waiver of electricity bills for flood-affected agricultural consumers for the months of August through October, and the provision of interest-free agricultural loans of up to Rs2 million against pledged land to help mitigate the force majeure conditions now faced by farmers.
Additionally, the Forum has called for a 30% subsidy on Urea and DAP fertilizers in flood-hit zones and encouraged the government to engage the Pakistan Sugar Mills Association (PSMA) to ensure favorable procurement rates for the upcoming sugarcane harvest in November.
To help revive production of key crops, the PBF has proposed a two-year general sales tax (GST) exemption for the domestic cotton sector and a suspension of the normal tax regime on rice and mango exports starting December 2025, continuing the relief efforts introduced under the Finance Bill 2024.
While acknowledging the fiscal limitations the government may be facing, the PBF stressed that the severity of the crisis calls for exceptional and immediate action. The Forum further recommended that the Ministry of Finance engage with the International Monetary Fund (IMF) to secure support for the proposed measures, citing both the humanitarian imperative and the urgent need to stabilize the rural economy.
Rehman noted that the measures being sought are not simply compensatory, but essential for reviving agricultural productivity and restoring confidence among farmers. He reaffirmed the Forum’s commitment to supporting government efforts during this critical period, and expressed hope that swift action would follow.
A copy of the PBF’s letter was also forwarded to the Federal Minister for National Food Security. As Pakistan continues to face an increasing frequency of climate-induced disasters, the Forum’s appeal highlights the urgent need for integrated policy responses that not only address immediate suffering but also build long-term resilience in the agricultural sector.
The forum also warned of import pressures of nearly $1.93 billion in fiscal 2026, and said inflation could rise to 7.2% from earlier estimates of 5.5% as shortages push up food prices.
President PBF further stated we should formally appeal for international assistance, as no single government and country can face such a disaster alone. “We must request help from our friends at the global level.