Federal Minister for Energy (Petroleum Division) Ali Pervez Malik has warned that the recent floods have devastated vast tracts of agricultural land, destroying cotton, wheat and other crops, and leaving farmers facing crippling losses.

Speaking on Aaj TV’s programme “News Insights with Amir Zia”, the minister said the government’s top priority is to compensate farmers and enable them to prepare for the next crop season, warning that missing crop targets could trigger “severe problems” for the national economy.

“The real crisis is agricultural productivity. If we don’t safeguard the next harvest, the cycle of losses will only worsen. The solution lies in technology, not in arbitrary pricing,” Malik stressed.

He revealed that initial damage assessments are underway, though estimates remain tentative.

“The floods will exert pressure on external debts, with exports also taking a hit,” he cautioned.

The minister said, “As far as I recall, Rs400 billion had been earmarked for the federal contingency fund. While part of it has already been spent, the remaining amount can be utilised for relief efforts.

In addition, around Rs700 billion allocated for the Benazir Income Support Programme (BISP) could also be directed toward rehabilitation and helping farmers prepare for the next crop season.”

“We must guard the contingency fund jealously and use it judiciously for rehabilitation,” he said, while emphasising that social protection is primarily a provincial responsibility.

On financial stability, Malik underscored the importance of maintaining foreign reserves and sustaining a partnership with the International Monetary Fund (IMF).

Regarding cash transfers, he said direct assistance is the best method but should remain temporary: “People must ultimately stand on their own feet. In natural calamities, relief should be based on the destruction suffered, not social class, area, or political affiliation.”

Turning to the energy sector, the minister admitted that surplus power generation has become “a noose around our neck” due to poor planning, but assured that corrective measures are underway.

“We will deliver good news on electricity soon, as we balance contracts and run the system efficiently,” he added.