Tuesday, February 27, 2024

Pakistan floods may reduce exports by upto 50 percent

Large swaths of Pakistan are still underwater and experts say that the floods may reduce the country’s exports by 35 to 50 percent.

“Initial estimates suggest that the country’s exports may get 35 to 50 percent setback.” Muhammad Noman, convener of the central committee on exports at the Federation of Pakistan Chamber of Commerce and Industry said while talking to the news agency. He also noted that the measure of the flood destruction is quite vast and still not completely fathomed.

According to the convener, several other factors are playing their role in Pakistan’s inability to export more to the global market apart from the recent floods, such as supply constraints, the fluctuation of national currency and global economic slowdown due to the Russia-Ukraine war.

Flood losses expected to cross $40 billion

During discussion on an interim report, the National Flood Response Coordination Centre (NFRCC) anticipated the total flood loss to be over $40 billion, including the economic loss and the damages.

“The devastating conditions suggest that the scale of flood losses is in the range of $30 billion to over $40 billion,” said Planning Minister Ahsan Iqbal, Chairman NFRCC, while talking to media.

While a comprehensive report of losses would be ready by four to six weeks, initial assessment would be finalized by the end of this week, according to the NFRCC chairman.
Earlier, the finance ministry’s initial assessment report had showed that economic losses were around $18 billion.

“The loss of $18 billion was our initial assessment, which can now be anywhere up to $30 billion once numbers are firmed up,” said Dr Aisha Pasha, Minister of State for Finance.

Damages caused by Floods

As per the reports, the following damages to crops and infrastructure are made by the flash floods:

• Almost entire cotton crop, the main raw material for the textile sector, was wiped out in the province of Sindh.
• The crop was partially damaged in Punjab
• Mainline-I Sukkur-Hyderabad section of Pakistan Railways in Sindh has been greatly destroyed
• An overall estimated loss of 1.9 million tons of rice, or an 80% loss of the expected total rice production in Sindh since the flood inundation is highest in the rice crop zone.
• 42,273 deaths of livestock in causing a direct loss of around $13 million to livestock sector in the province.

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