The federal government is considering two major proposals aimed at providing relief to farmers, particularly those affected by recent floods, by offering loan relief through the rescheduling or potential write-off of loans from Zarai Taraqiati Bank Limited (ZTBL), The Express Tribune reported.
In a recent meeting with Prime Minister Shehbaz Sharif, cabinet members suggested that due to losses caused by the floods, farmers should be granted either loan write-offs or rescheduling, with the added benefit of interest waiver. The proposals were part of broader recommendations aimed at supporting flood-affected agricultural communities.
Another major concern highlighted by the cabinet members was the devastation caused during the wheat crop season of 2024-25, where farmers faced low prices, leading many to forgo planting wheat in the coming season. To incentivize wheat production, the members recommended the revival of the support price mechanism by provincial governments.
However, they cautioned that an immediate announcement of the support price could benefit hoarders and that consultations with farmers should precede any such decisions.
Recognizing the provincial responsibility in agriculture and climate change, the cabinet members emphasized that any programs addressing these issues should be developed in collaboration with provincial governments, which would also need to provide major funding. They also noted the federal government’s limited financial capacity to support provincial obligations.
To address these challenges, the cabinet members advocated for a two-pronged strategy. This would include short-term measures to provide immediate relief to farmers, alongside long-term structural reforms to tackle the ongoing and future impacts of climate change on agriculture.
In line with this approach, the cabinet recommended convening a meeting of the Pakistan Climate Change Council, which includes provincial ministers, to discuss and coordinate strategies for both agriculture and climate change.
