Govt Considers Writing Off Loans for Farmers

The government is considering two proposals to ease the financial burden on farmers hit by recent floods, including the rescheduling or possible write-off of loans from Zarai Taraqiati Bank Limited (ZTBL), officials said. Cabinet members, in a recent meeting with Prime Minister Shehbaz Sharif, recommended that ZTBL borrowers be granted relief through either debt write-offs or rescheduling, along with the waiver of interest payments, reported Express Tribune. The state-owned bank is a key source of financing for the agriculture sector. Ministers warned that wheat growers, already reeling from low prices during the 2024–25 crop season, were unlikely to plant again this year without government intervention. They urged provinces to revive the support price mechanism, cautioning, however, that announcing a price too soon would only benefit hoarders. They also stressed that farmers must be directly consulted before any policy shift. The cabinet underscored that agriculture and climate change are provincial responsibilities and insisted that new programs in these areas must be designed with provincial collaboration and funding. With limited fiscal space at the federal level, members argued that any proposed emergency should be tied to a clear, actionable plan addressing both agricultural relief and climate resilience. They emphasized a dual strategy: immediate short-term measures to assist flood-affected farmers and long-term structural reforms to mitigate climate change impacts on agriculture. To this end, they called for an urgent meeting of the Pakistan Climate Change Council, established under the 2017 Climate Change Act, to formulate coordinated strategies with input from all stakeholders. Cabinet members also highlighted rapid population growth as a compounding factor, straining resources and worsening climate vulnerabilities. They proposed the creation of a high-level committee led by the planning minister and comprising provincial chief secretaries to map out concrete steps for tackling agricultural and climate emergencies.