ISLAMABAD: Pakistan has approached the International Monetary Fund (IMF) for concessions in meeting the lender’s targets after devastating monsoon floods caused an estimated $1.31 billion (Rs370 billion) damage nationwide, National Food Security Minister Rana Tanveer Hussain said on Thursday, adding the global lender has been “flexible” with regard to the crop, livestock and infrastructure losses.
The floods, triggered by heavy monsoon rains and India’s release of excess water, have killed 1,006 people, affected another over 4 million and washed away 6,509 livestock since June 26, besides damaging standing crops, homes and road network.
An IMF mission is currently in Islamabad to conduct a second review of its $7 billion External Fund Facility (EFF) and the first review of the $1.4 billion Resilience and Sustainability Facility (RSF) for the country.
In a meeting with IMF Managing Director Kristalina Georgieva in New York last month, Prime Minister Shehbaz Sharif had urged the global lender to take into account the recent flood damages in its upcoming review for the South Asian nation.
“Yes, we presented them agriculture loss data. They have shown concern on this. They may give us some relief. We have spoken to them. They are now flexible,” Hussain told Arab News in an exclusive interview.
The floods mainly affected the country’s breadbasket Punjab province, where crops over more than 2.5 million acres of land were submerged, according to disaster management officials.
While assessments are still ongoing, initial data indicates that rice, sugarcane and cotton crops have borne the brunt of the deluges, according to Hussain.
“In total, the initial loss estimate is around $1.31 billion (Rs370 billion),” he said. “We are using satellite data and ground surveys to compile the final estimates.”
Despite the widespread losses, Pakistan is not facing an imminent food security crisis, according to the minister. In the Sindh province, another major crop producer, “preventive steps helped reduce the impact.”
“We had higher sowing of rice and sugarcane earlier, so that has helped balance the shortfall,” he said, adding that some vegetables and perishable items have seen price spikes due to supply chain disruptions.
However, wheat production, already below target this year, remains a concern.
“We saw 6 percent less area cultivated compared to last year,” Hussain said, adding that the government plans to boost wheat sowing and ensure farmers receive fair market prices to incentivize production.
“The prime minister is fully committed to supporting farmers, while staying within the framework of IMF conditions.”
ANOTHER POSSIBLE WAIVER FOR POWER BILLS
Hussain said PM Sharif is considering extending a waiver on electricity bills for another month in flood-hit areas to ease the burden on affected communities.
“We have done it for August now we will evaluate for September,” he shared. “If the affectees are still not able to settle in their areas, the prime minister will consider this, and deliberations are going on.”
Targeted crop subsidies are also under consideration, pending the final survey.
“We want to ensure the right people receive support,” Hussain added.
Monsoon season brings Pakistan up to 80 percent of its annual rainfall, but increasingly erratic and extreme weather patterns are turning the annual rains, which are vital for agriculture, food security and the livelihoods of millions of farmers, into a destructive force.
Hussain acknowledged the growing impact of climate change on Pakistan’s agriculture.
“We are one of the most climate-affected countries,” he said, pointing to current collaborations with international partners to introduce climate-resilient seeds and adjust sowing patterns. “We are advising delayed sowing in some areas to adapt to shifting climate conditions.”
Work is also underway to develop a crop insurance framework, but no national model has been finalized yet. Discussions are ongoing with commercial banks and insurance firms. “Ideally, a failed crop should not mean financial ruin for the farmer,” he said.
