Pakistan: Economic loss due to floods rises to around USD 18 billion
10 September, 2022 | Pravina Srivastava
According to calculations by the Centre and supported by the provinces, the anticipated economic damage caused by the historic floods in Pakistan has increased to about USD 18 billion, up from an e...
According to calculations by Centre and supported by the provinces, the anticipated economic damage caused by the historic floods in Pakistan has increased to about USD 18 billion, up from an earlier estimate of USD 12.5 billion.
After floods, the expansion of the agricultural sector was far more negatively impacted. According to The News International, the devastating floods have devastated crops on 8.25 million acres as opposed to the previous estimate of 4.2 million acres, which has compounded the economic losses. If dewatering is not done effectively, it can seriously affect wheat planting. Cotton, rice, and other minor crops have been badly affected. Most of the country’s cotton crop has vanished, and now wheat planting is under jeopardy.
A summary for raising the minimum support price of wheat for the upcoming harvest has been tasked to the Ministry of National Food Security.
As per media reports, the authorities have met with international donors and given them assurances that Pakistan will put in place an efficient monitoring and assessment mechanism to use every dollar to transparently limit flood losses.
The per capita income is expected to decline as a result of rising economic losses and slower GDP growth. For the current fiscal year, the government expected GDP to expand at a pace of 5%.
Additionally, from 21.9 to over 36 percent, poverty and unemployment will increase significantly. According to estimates from the Pakistani government, after floods in 118 districts, 37% of the population was affected by poverty.