MSP scrapped, Indus Water Treaty paused: How Pak farmers are real losers of Islamabad's terror policy

First Post

25-04-2025

Pakistan's long-standing policy of funding, supporting terrorism against its rivals in the region is now coming back to haunt its food security read more
Farmers in Pakistan's largest Punjab province are livid at the government. The reason? The cash-strapped Pakistan government has scrapped the long-standing policy of setting a minimum support price for wheat purchase, leading to a crash in prices. This has angered the farmers as they aren't getting a fair price for their wheat crop. Now, they're forced to sell to private buyers at lower rates.
The Pakistan Kissan Ittehad (PKI), which represents many farmers, warned that if this doesn't change, many may stop growing wheat next year, possibly leading to food shortages.
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All in all, decisions made by Islamabad out of economic compulsions may lead to food crisis in the country, which reflects a deepening crisis in Pakistan's agricultural sector.
The problem started last year when the government suddenly pulled out of the wheat market. This was part of efforts to meet conditions under the IMF programme. But the move was unplanned and poorly managed, leaving farmers unprepared.
But problems for Pakistani farmers don't end there. The growing tensions with India in the aftermath of the deadly Pahalgam terrorist attack, which killed 26 people, forced New Delhi to pull the plug on the Indus Water Treaty.
The Indus Waters Treaty (IWt) is a deal brokered by the World Bank between India and Pakistan on September 19, 1960. Signed in Karachi by then Prime Minister Jawaharlal Nehru and then Pakistan President Ayub Khan, it determines the distribution of the waters of the Indus and its tributaries — Ravi, Beas, Sutlej, Jhelum, Chenab and Kabul.
Now, this move by India came as another significant blow for the farmers.
According to experts, the rivers that fall under the purview of the IWT are vital to Pakistan for its agricultural purposes. In fact, data reveals that Pakistan relies on the Indus River and its tributaries for approximately 80 per cent of its irrigated agriculture, which contributes 21 per cent to its GDP and supports 45 per cent of its workforce.
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By pausing the IWT, India is effectively halting the flow of 39 billion cubic metres of water annually, threatening the neighbouring country's water availability. A disruption in the water supply, especially in the summer months, will not only affect Pakistan's agriculture but also have an effect on its trade, employment and food prices.
It's a double whammy for Pakistani farmers. On the one hand, they feel the heat of Pakistan's economic crisis; on the other, of security crisis. Pakistan's long-standing policy of funding, supporting terrorism against its rivals in the region is now coming back to haunt its food security.