Pakistan: Economic loss due to floods rises to USD 18 billion

Story by  ATV | Posted by  Nakul Shivani • 1 Years ago
Pakistan is reeling under the worst floods in recent memory
Pakistan is reeling under the worst floods in recent memory

 

Islamabad

The estimated economic loss due to the unprecedented floods in Pakistan has neared around USD 18 billion, an increase from USD 12.5 billion estimated earlier.

Agriculture growth faced a much more severe impact in the aftermath of floods. The catastrophic floods have destroyed crops in 8.25 million acres as compared to the initial assessment of 4.2 million acres which has further increased the economic losses.

Cotton, rice and minor crops have been damaged severely and if dewatering is not done properly, it can cause serious problems for wheat sowing. The cotton crop has evaporated in most parts of the country and now wheat sowing is under threat.

The authorities have held meetings with international donors and assured them that Pakistan would place an effective monitoring and evaluation system to utilise each penny to mitigate the flood losses in a transparent manner.

In the wake of the increased economic losses and reduced GDP growth, the per capita income is projected to slow down. The government had envisaged a GDP growth rate of 5 per cent for the current fiscal year.

Moreover, poverty and unemployment will go up manifold from 21.9 per cent to over 36 per cent. Some 37 per cent population was hit by poverty after floods in 118 districts, as estimated by the Pakistan government.

The UN Secretary-General Antonio Guterres on Friday landed in Pakistan on a two-day visit to take stock of the floods-related situation and express solidarity with the country's people hit by extreme monsoon rain.

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The UN chief will have meetings with the Pakistani leadership and senior officials to exchange views on the national and global response to this catastrophe.