Another blow to Pakistan, due to floods, there will be a big impact on the growth rate
Pakistan Economy: Severe floods caused by devastating monsoon rains in Pakistan, the ongoing war in Ukraine and other factors may reduce its economic growth forecast from five per cent to three per cent in the current fiscal. This has been claimed in a media report. Major General Zafar Iqbal, chairman of Pakistan’s National Flood Response and Coordination Center (NFRCC), has briefed Prime Minister Shehbaz Sharif and UN Secretary-General Antonio Guterres about the horrors of the floods.
One-third of Pakistan affected by floods
He said that one-third of Pakistan has been submerged in the floods, which is estimated to cause about $ 30 billion in damage. Pakistani news agency Associated Press of Pakistan quoted Iqbal as saying that Pakistan is fearing a two percent decline in the GDP growth figure in this situation of crisis. In this, apart from floods, delays in getting funds from the International Monetary Fund (IMF) and the emerging economic situation due to the Russo-Ukraine war have been attributed.
GDP growth likely to be 3 percent
Pakistan’s GDP growth rate was expected to be five percent in the financial year 2022-23, but due to floods and other reasons, it is expected to remain only three percent. Apart from this, the newspaper ‘The Dawn’ said in a news that the ‘Super Flood’ in 2010 affected about 20 million people, while the current flood is affecting 33 million people across the country. About 60 lakh flood-affected people are living in relief camps. Meanwhile, the National Disaster Management Authority (NDMA) said that the death toll in the floods has risen to 1,396, while the total number of injured is over 12,700.
Textile Exporters Association appealed to the government
With devastating monsoon rains in cotton fields Pakistan Textile Exporters Association has approached the federal government to allow the import of cotton from India through Wagah to meet the growing export orders. According to a Dawn report, exporters say that initial estimates suggest that 25 per cent of the standing cotton crop has been damaged and there is a possibility of shortage of raw materials in the country.
Flood damage to cotton crop
In the wake of flood damage from cotton crops in Sindh and Punjab separately, the federal government on Wednesday formed a committee that would interact with seed companies and facilitate them to introduce state-of-the-art cotton seeds in the local market. The decision was taken during a meeting in the Ministry of National Food Security and Research to consult with stakeholders and review proposals for increasing the yield and area of cotton crops.
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