Pakistan floods come with a huge price tag far beyond what the official counts

Islamabad: New information has revealed that economic losses from flash floods in Pakistan could be between $15 billion and $20 billion. Indeed, the government fears that an additional 12 million people could be pushed into poverty, underscoring the need for immediate and major global financial assistance. The economic loss from the impact of the floods on Pakistan’s economy far exceeds initial estimates of $10-12 billion, compiled by the Ministry of Finance, the Express Tribune reported.

According to preliminary reports, the economic loss was estimated between 15 and 20 billion dollars, indicating that the country suffered heavy losses due to the floods submerged large populations. The Express Tribune reported $12 billion in direct damage to the economy, $6 billion in damage to housing infrastructure, and $4 billion in damage from livestock losses.

Floods could increase trade deficit by up to $4 billion
Most economic loss estimates are based on data as of September 5 provided by the National Disaster Management Authority, but figures are still subject to revision. “We have updated our previous estimates of economic losses from $15 billion to $20 billion in light of the new information,” said Ayesha Pasha, minister of state for finance, who led the exercise. The report also showed that the flood could widen the trade deficit to $4 billion and the additional impact on the current account deficit is also estimated at $4-5 billion.

Pakistan is a victim of global warming, although its contribution is less than 1%. The report further states that 90 lakh to 1.2 crore more people will fall below the poverty line and 10 lakh to 20 lakh people have lost their jobs. As The Express Tribune reports, it says 77.7% of the informal workforce in rural areas are women, with six out of 10 young women concentrated in the agricultural sector.

Eleanor C. William