Islamabad September 9, : The most recent information suggests that the economic damage and losses caused by the flooding in Pakistan may range from $15 billion and $20 billion The government is worried that up 12 million additional people could be forced into poverty, underscoring the urgent need for massive and immediate global financial aid.Based on the ‘An Early Evaluation of the impact of floods on Pakistan’s Economy report, which is being prepared by the Ministry of Finance, the economic losses are significantly higher than estimations of 10 billion-$12 billion.The Express Tribune reported.
Economic losses are calculated in the region of 15 billion to 20 billion as per the initial report, which indicates enormous damage to the country suffered due to flash floods that inundated large populations.
There are direct losses of $12 billion to the economy.These include as well as $6 billion damage to housing infrastructure, and the $4 billion cost of loss of livestock, Express Tribune reported.
The majority of the estimations of the economic loss are based upon data that were collected September 5, as reported by the National Disaster Management Authority, however, the figures are susceptible to change.
“We have updated our previous estimations of the economic loss to between $15 billion and $20 billion in light of new information,” said Aisha Pasha Minister of State for Finance who was the driving force behind the exercise.
The report also revealed that the floods may increase the deficit in trade by around $4 billion, and the effects on the current account deficit are thought to be in the range of $4 billion to $5 billion.
Pakistan cannot deal with huge losses of between $15 billion and $20 billion.
This comprises of the direct loss to the economy and the loss of the assets.It will require massive global support.
Pakistan is a victim of the warming of the world phenomenon, however, its contribution is lower than 1%.
The report also says that between 9 and 12 million will be below the poverty level and 1 million to 2 million people have lost their jobs.
It also stated that 77.7 percent of the informal labor in rural areas is made up of women, with six out of 10 employed young women mostly in the agricultural sector The Express Tribune reported.
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