According to the most recent data, flash flood-related economic losses and damages might total $15 billion to $20 billion.
The government anticipates that up to 12 million more people may fall into poverty, highlighting the urgent requirement for significant international financial assistance.
The economic losses are significantly greater than the early projections of $10 billion to $12 billion, according to the paper entitled “An Early Assessment of Flood Impact on Pakistan’s Economy” that is being put together by the Ministry of Finance.
According to the preliminary analysis, the economic losses are expected to be between $15 billion and $20 billion, showing the significant harm caused to the nation by flash floods that engulfed big populations.
Direct economic losses were $12 billion, housing infrastructure losses total $6 billion, and livestock losses totaled $4 billion.
The National Disaster Management Authority (NDMA) provided data that was collated up until September 5 on which the majority of the estimates of economic losses were based, but the amount is still susceptible to change.
“We have updated our earlier estimates of the economic losses to $15 billion to $20 billion in light of new information,” said Dr. Aisha Pasha, the Minister of State for Finance who spearheaded the exercise.
The research also indicated that the floods may cause the trade deficit to increase by $4 billion and that the current account deficit may increase by an additional $4 to $5 billion as a result.
Massive losses of between $15 and $20 billion, which include both direct economic losses and asset losses, are too great for Pakistan to handle without significant international assistance.
Despite making less than 1% of the global warming problem, Pakistan is a victim of it.
To read our blog on “In Pakistan, recent floods have caused more than 120 fiber network disruptions,” click here.
