Wednesday July 17, 2024

Economic Survey: Overall flood losses stand at $31.5bn

By Khalid Mustafa
June 09, 2023

ISLAMABAD: The country faced a loss of $31.5 billion in 2022-23 in the wake of the unprecedented floods that hit Sindh, Balochistan, and some parts of south Punjab, says the Economic Survey 2022-23. The 2022 floods have shown Pakistan’s high vulnerability to climate change despite contributing only less than one percent of global greenhouse gas emissions. Since July last, the federal and provincial authorities have been working tirelessly to manage the massive relief efforts across the country, together with local, national and international partners. One-third of the country has been underwater, and 33 million people have been affected. Nearly 8 million people are reportedly displaced. The scale of the disaster is unprecedented in Pakistan, exceeding the damage of the 2010 floods.

As per the Economic Survey of Pakistan for 2022-23, the damage has been worked out at $14.9 billion, whereas the loss to the GDP at $15.2 billion, and the total needs of rehabilitation at $16.3 billion. The sectors that bore the brunt are housing at $5.6 billion, agriculture, food, livestock, and fisheries at $3.7 billion and transport and communications at $3.3 billion. The transport and communications sector has the highest reconstruction and recovery needs at $5 billion, followed by agriculture, food, livestock, and fisheries at $4 billion, and housing at $2.8 billion. The provinces of Sindh and Balochistan account for approximately 50 percent and 15 percent of recovery and reconstruction needs, respectively. Damage has been defined as the direct costs of destroyed or damaged physical assets. It has been valued in monetary terms, with costs estimated based on replacing or repairing physical assets and infrastructure, considering the replacement price prevailing before the crisis.