The decision to this effect was taken during a federal cabinet meeting presided over by Prime Minister Nawaz Sharif.
The meeting decided to form committees in affected areas comprising local representatives. It was told during a meeting that ten districts of Punjab were affected due to floods. Chiniot, Jhang and Hafizabad suffered major destructions.
At least 274 people perished, 33,000 houses destroyed and 1.1 million people displaced in the of floods.
The prime minister directed that the money being spent on compensation and development of flood-hit areas should now be redirected for measures to prevent further damages by floods.
He also said steps should be taken to avoid Sindh from damages due to looming threat of floods.
The meeting also approved 37 economic agreements.