Pakistan Flood Pakistan: Flood to cause USD 4b loss to economy
Quetta: The ongoing flash floods and heavy rains, which is ravaging Pakistan, is estimated to have cost the country's economy over USD 4 billion in the current fiscal year.
The calamity has badly hit agricultural activities in Sindh and Balochistan.
While it is early to assess the actual impact, Pakistan, where agriculture has a 23% share in gross domestic product (GDP), can remain highly vulnerable in the aftermath of the floods, reports The Express Tribune.
“Based on our preliminary estimates, the current account deficit may increase by $4.4 billion (1% of GDP) – assuming no counter-measures are taken, while around 30% of the CPI (Consumer Price Index) basket is exposed to the threat of higher prices,” said JS Global Research in a report on Friday as quoted by the newspaper.
The situation may force the government to make additional import of cotton worth $2.6 billion, wheat worth $900 million and the country will lose textile exports of around $1 billion.
This comes to around $4.5 billion (1.08% of GDP) in current fiscal year 2022-23. Owing to the flash floods, the consumers are expected to face supply deficit of household groceries such as onion, tomato and chilli.
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