The projected economic losses stemming from flooding in the country have increased by $2 billion since the Centre’s initial assessment. The economic costs of the flood has risen to 8.25 million acres from 4.2 million acres. As agricultural crops in affected areas more severely damaged than initially thought by officials.
Crops such as cotton, rice, and minor crops severely damaged by the floods. If dewatering not done properly, it could cause serious problems for wheat sowing—one of Pakistan’s staple foods.
The country lost its staple food due to flood
Most of the cotton crop lost, and now farmers concerned about their wheat fields.
The Ministry of National Food Security has been asked to come up with a summary that will increase the minimum support price for wheat in an upcoming crop.
The authorities have assured international donors that they will set up an effective monitoring and evaluation system to make sure each penny used in a transparent manner.
The United Nations secretary-general is visiting Pakistan this week, and the country will pay part of the costs to assess disaster relief.
The World Bank has ordered a separate study of the damage caused by the floods and is reconciling these figures before it releases any funds, according to sources.
The Ministry of Planning is planning to reduce the Public Sector Development Program (PSDP) by Rs250–Rs300 billion—from its current level of Rs800bn down to around Rs500-550bn. In order to divert these resources toward flood-affected areas.
Minister of State for Finance Aisha Ghaus Pasha approached her with a request to share the latest information on rapid assessment costs. When she asked about what they had been, Minister Pasha refused to give specifics and said that they’d escalated and officials were trying to finalize them by giving a cutoff date. Although it would be impossible unless she knew where things stood right now.
The cost of economic loss is about 18 billion
The government had originally estimated that the cost of economic losses would be around $10 to 12.5 billion, but after accounting for all factors, it revised its figures upward to between $17 and 18 billion.
The government had projected a 5 percent growth rate for the current fiscal year; however, reduced economic activity may cause per capita income to slow down.
The IMF had recently projected that the GDP growth would be standing at 3.5 percent for the current fiscal year; however, due to damage caused by floods in agriculture and industrial sectors—along with signs of slowing down from these sectors independently—the growth might fall below 2 percent.
