The floods 2025 caused Rs 430 billion loss to the agriculture sector – Pakistan Business Forum
Rehabilitation measures should be taken through the Economic Coordination Committee
Lahore ( Web News )
Pakistan Business Forum (PBF) has sent an important letter to Finance Minister Muhammad Aurangzeb, presenting comprehensive recommendations for the restoration of the flood-affected agricultural economy and basic infrastructure.
The Forum has demanded that the Economic Coordination Committee (ECC) immediately declare an Agricultural Emergency and initiate practical relief measures for the flood victims.
PBF President Khawaja Mahboob ur Rehman said that their data has proven accurate, and now even the government acknowledges that the agriculture sector has been the hardest hit — suffering an estimated loss of Rs 430 billion, while the infrastructure sector has endured losses amounting to Rs 307 billion.
In light of this grave situation, the PBF has urged the Ministry of Finance to ensure urgent and effective government intervention.
Among the Forum’s recommendations is the demand that the support price for wheat be reinstated for two years, to restore farmers’ confidence and encourage production. The Forum also welcomed the Sindh government’s proposal to set a support price for wheat.
Additionally, it called for a complete waiver of electricity bills for three months in flood-affected areas to provide immediate financial relief to local farmers.
The PBF urged the government to instruct banks to launch easy and rapid loan schemes in the affected regions to help restore agricultural lands. To prevent a surge in fertilizer prices, the ECC has been advised to announce at least a 30% subsidy on urea and DAP fertilizers.
The Forum further proposed that to support local cotton production, the 18% sales tax imposed on cotton be suspended for the next two years. Similarly, the normal tax regime on rice exports should also be deferred for two years to help the export sector recover.
President Khawaja Mahboob ur Rehman stressed that the Sugar Mills Association should be required to purchase the remaining sugarcane crop in November at fair and reasonable prices, ensuring farmers receive proper compensation for their efforts.
He emphasized that all these recommendations should be included in a national agricultural emergency plan, as the country’s agricultural sector is currently facing a severe crisis.
The Forum also urged the government to convince international financial institutions such as the IMF to show flexibility in policies related to farmer relief; otherwise, Pakistan could face not only a decline in agricultural output but also a significant drop in tax revenues.
The Pakistan Business Forum warned that if over 1.8 million acres of flood-affected farmland are not rehabilitated in time, the country’s economic indicators could deteriorate severely over the next two years.