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Arab News
27-07-2025
- Business
- Arab News
Monsoon floods hitting key crops, says farmers' body, amid risk to Pakistan's growth target
KARACHI: Deadly monsoon floods are devastating Pakistan's standing crops, with cotton the worst hit, a leading farmers' representative warned on Saturday, raising concerns about a potential setback to the government's ambitious 4.2 percent growth target this fiscal year. Over 270 people, mostly children, have died and hundreds more have been injured since June 26 as intense monsoon rains battered Punjab, Khyber Pakhtunkhwa (KP), Sindh, Balochistan, Azad Kashmir, Gilgit-Baltistan and Islamabad, according to the National Disaster Management Authority (NDMA). Around 1,200 houses, 12 bridges and 18 kilometers of road have also been damaged, along with more than 360 livestock killed. 'Cotton is the worst-hit crop, besides rice, maize and mango orchards,' Khalid Mehmood Khokhar, president of the Kissan Ittehad Council (KIC), told Arab News. 'While most of the rice has already been sown, floods have disrupted the remaining cultivation.' Agriculture contributes nearly 23 percent to Pakistan's GDP and underpins key export sectors. Cotton, in particular, is a vital raw material for Pakistan's textiles, which fetched $18 billion in exports last fiscal year. Pakistan also exported $3.4 billion worth of rice and $308 million in fruits, including mangoes. The government aims to produce 10.1 million bales of cotton across Punjab, Sindh, KP and Balochistan in the ongoing financial year. But progress has been uneven. In Sindh, the biggest cotton-producing province, only 65 percent of the sowing target has been met. Punjab, the second-largest grower, has achieved 90 percent of its target. Pakistan's agriculture sector grew just 0.6 percent during the last fiscal year, dragging overall GDP growth down to 2.7 percent. Economists warn the impact of the floods could again weigh heavily on national output. 'These floods will definitely impact Pakistan's growth target this year,' Sana Tawfik, head of research at Arif Habib Limited, said. 'This is a serious concern.' She projects GDP growth to be closer to 3.4 percent this year. 'Agriculture may once again be a major drag,' she added. Khalid Abdullah, Pakistan's former cotton commissioner, said rainfall was already affecting crop quality. 'Rains and cloudy weather have been consistent in some areas,' he said. 'This not only increases weeds but also flares up fungus attacks. If this weather continues, the cotton seed may start germinating inside the boll, which would mean the crop is gone.' As of July 15, cotton arrivals were down 33 percent year-on-year, according to Pakistan Cotton Ginners' Association data, with only 297,751 bales entering markets nationwide. The government has still not shared estimated economic damages from the ongoing monsoon season, though they may run into billions of dollars once again. Pakistan is one of the world's most climate-vulnerable countries. According to the Economic Survey 2024–25, it has suffered 224 extreme natural disasters, 109 of them floods, since 1980, in which more than 100 million people were affected, causing $36.4 billion in economic losses. Three years ago, Pakistan experienced heavy monsoon rains that killed about 1,700 people and caused widespread destruction of houses, farms and public infrastructure. The Pakistan Meteorological Department has forecast further rainfall in parts of Punjab and KP over the coming days, as the monsoon season continues in the country.
Business Recorder
05-06-2025
- Business
- Business Recorder
Agri sector witnesses dramatic slowdown: PKIC
ISLAMABAD: The country's agriculture sector has witnessed a dramatic slowdown, with growth dropping to 0.56 percent from 6.25 percent since July 2024, Pakistan Kissan Ittehad Council (PKIC) President Khalid Mehmood Khokhar said on Wednesday. Addressing at a press conference, he said that the decline in major crop yields has severely impacted both the economy and the livelihoods of farmers. He said that cotton production has dropped to 5.55 million bales — 50 percent below the government's target and 34 percent less than last year. Cotton import bill is projected to surge to $1.9 billion, up from $448 million the previous year, he said. Khokar said that the country's wheat production has also suffered, declining by 8.91 percent to 28.98 million tons from last year's 31.81 million tons. Maize production fell by 15.4 percent to 8.24 million tons, compared to 9.74 million tons in the previous year, he said. Khokhar stated that since May 2024, farmers have collectively suffered losses of around Rs2,200 billion in wheat alone — equivalent to 23.15 percent of the crop sector's contribution to GDP for the fiscal year 2023–24. The resulting financial strain has weakened farmers' purchasing power and affected the productivity of other crops as well, he said. Copyright Business Recorder, 2025
Express Tribune
23-04-2025
- Business
- Express Tribune
Cabinet moves to appease farmers
In a bid to defuse mounting unrest among Punjab's farming community, the provincial cabinet, chaired by Chief Minister Maryam Nawaz Sharif, rubber-stamped a series of interventions during its 25th meeting on Wednesday. Yet farmer leaders dismissed the package as too little, too late, warning that the measures would do little to alleviate growers' profound financial losses. Highlighting the session's marquee decision, the cabinet approved an amendment to the Food Grains (Licensing Control) Ordinance, 1957. Under the new rules, all licenced flour mills must purchase at least 25%? of their wheat requirements directly from registered farmers. Mills failing to comply face revocation of their operating licenses. Simultaneously, the government moved to deregulate wheat procurement, lifting previous restrictions on private sector buying in an effort to widen market access for growers. To address the perennial liquidity squeeze at harvest season, the cabinet endorsed implementation of an Electronic Warehouse Receipt (EWR) system. Farmers will be able to deposit their wheat in certified warehouses and obtain bank loans up to 70% of the stored grain's value. The provincial government will underwrite initial storage charges, allowing growers to defer sales until market prices improve. The CM underscored the need to translate agricultural research into tangible benefits. She directed that all outstanding payments under provincial water supply and irrigation schemes be disbursed without delay, warning that farmers' productivity hinges on reliable irrigation infrastructure. The government's interventions, however, drew criticism from Punjab's principal farm lobby. Pakistan Kissan Ittehad President Khalid Mehmood Khokhar lamented the absence of a guaranteed support price. "Our core demand has always been a minimum purchase price that at least covers our cost of production," he said. "With no floor price announced, farmers have been forced to sell much of their wheat at rates far below cultivation expenses. This package arrives after the damage is done." Khokhar put the sector's cumulative losses for the current season at Rs1,106?billion, declaring, "By the time these measures take effect, the harvest is gone. Growers will not trust Punjab's leadership again next year." He also accused ruling party legislators of remaining silent on the crisis, describing the cabinet's proposals as politically motivated but practically ineffective. Agriculture was only one item on a sweeping agenda. The cabinet authorized funding to convert the Children's Library Complex in Lahore into an early-education centre named after Nawaz Sharif, and approved the deployment of eco-friendly electric buses in major Punjabi cities. Environmental initiatives included merging the Environment Policy Centre with the Environment Technology Centre to form a Climate Policy and Technology Centre. Infrastructure approvals ranged from jeepable tracks in the Koh-e-Sulaiman area to new lodging facilities at Nishtar Park Sports Complex. A reserve-price auction framework for placer gold along the Indus River in Attock was also endorsed. Labour and social welfare reforms featured prominently: the assembly ratified amendments to the Punjab Motor Vehicle Rules to regulate rickshaw operations, expanded social security coverage under the Punjab Workers Social Security Ordinance, and delegated Additional Sessions Judges the powers of consumer courts. A draft Punjab Labour Code 2024covering construction, agriculture, and allied sectorsreceived cabinet approval, while funding was allocated for tertiary care hospital equipment and medicines across the province. In a bid to boost crop yields, the cabinet approved an MoU between Punjab's Ayub Agricultural Research Institute and China's Anhui Academy of Agricultural Sciences. The agreement will facilitate introduction of hybrid rice seeds suited to local conditions. Amendments to the Police Station Computerization Project and other digital-governance schemes were also ratified. With the wheat procurement measures now enshrined in law, the government faces a critical test: translating policy into timely payments and reliable markets for Punjab's farmersand winning back their confidence.
