All Economic Targets Upset by Flood; Loss Touches $ 12 Billion: Finance Ministry Report

Pakistan’s economy has suffered damage of $12 billion due to ravaging floods across the country, reveals the finance ministry’s flood damage report. According to the sources in the Ministry of Finance, the ministry has prepared a flood damage report and sent it to Prime Minister’s Office. It estimates economic growth to drop from 5 percent to 3.3 percent due to the floods. The sources further said that the report expects the rate of employment providence to decline by 1.2 percent, while development projects worth Rs. 180 billion are expected to remain incomplete owing to floods. Consequently, 600,000 jobs will not be provided due to the negative impact on the development sector. It is pertinent to mention here that infrastructure has suffered massive damage as a result of floods, with more than 1.4 million houses damaged, while roads with a length of 5,563 km have also been damaged. Estimates suggest that Pakistan needs more than Rs. 1 trillion to restore damaged houses alone. To overcome flood losses, the government would seek assistance from International Monetary Fund (IMF), World Bank, Asian Development Bank (ADB), and other financial institutions. In this regard, Finance Minister Miftah Ismail has already contacted IMF officials, sources revealed. Furthermore, the government will also send the flood damage report to financial institutions to better represent its case in front of them, sources said.