Punjab Prepares Rs. 500 Billion Package for Flood Victims

The Punjab government, led by the PML-N, has finalised a Rs500 billion relief package to assist families devastated by recent floods, sources revealed. The plan is designed to provide direct financial aid to millions of people living along the banks of three major rivers who lost homes, crops, and livestock during the disaster.

Under the programme, payments will be made via Punjab Relief Cards. Families whose homes were destroyed will receive Rs1 million, while those with partial damage will be granted Rs500,000. According to preliminary estimates, around 63,200 brick houses and over 309,000 mud houses were damaged. Compensation has also been earmarked for livestock losses, including cows and buffaloes.

Farmers will receive Rs20,000 per acre for destroyed crops, while a portion of the package will go toward repairing roads, bridges, and critical infrastructure. Officials said this effort is among the largest rehabilitation drives in recent years.

Floods have not only swept away villages but also hit Punjab’s agricultural and industrial hubs, causing billions in losses and threatening an already fragile economic recovery. The government had anticipated a 4.2% growth rate in 2026, supported by a rebound in agriculture and manufacturing under the IMF bailout programme, but record monsoon rains since late June—compounded by dam discharges from India—have disrupted those projections.

Punjab’s disaster management authority reported that at least 1.8 million acres of farmland are underwater. Initial estimates suggest 50% of rice and 60% of cotton and maize crops have been damaged. Losses could rise beyond 2.5 million acres, with a value exceeding Rs1 trillion ($3.5 billion), warned the Pakistan Farmers Association.

Experts say the devastation is on par with the catastrophic 2022 floods, with some describing it as worse due to simultaneous shocks to both agriculture and industry. Former University of Agriculture Faisalabad Vice Chancellor Iqrar Ahmad Khan said nearly 10% of the country’s crops are destroyed, with vegetable losses at 90% in several districts.

The timing is particularly alarming as Pakistan prepares to sow wheat, which supplies nearly half of the nation’s caloric intake. While reserves from the strong 2024 harvest remain stable, waterlogged fields may delay or reduce sowing. “This is not just about rising prices—food insecurity is looming,” Khan warned.