Pakistan Flash Floods: Impact on economy & global response

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Impact of Flash Floods on Pakistan economy and global support

Islamabad, 6 September 2022 (TDI): Over the past two months, heavy rainfall has inundated vast swathes of Pakistan, devastating villages, and farmland.

Floods and monsoon rains have damaged 1 million houses and affected 33 million people. The impacts of recent flooding in Pakistan are far-reaching.

It has left practically three-quarters of a million people without access to safe as well as adequate housing.

Initial assessments predicted that more than 1,000 people and millions of livestock have died in the major flood-hit areas of Punjab, Sindh, Balochistan, and Khyber Pakhtunkhwa.

Why is Pakistan at risk of climate change impacts?

Despite being the lowest contributor to climate change, Pakistan has been constantly on the list of the top 10 countries most vulnerable to climate change for the past 20 years. This is due to several reasons.

Pakistan’s varied geography has larger numbers of glaciers in the north, arid deserts, and fertile agricultural lands in the central part of the country, with big cities like Karachi that are close to sea level and prone to severe impacts as sea level rises.

In the case of Pakistan, global warming has turned monsoon seasons and hot months into extreme weather events. Poor governance and politics have also played a part in Pakistan being at risk of climate change impacts.

The lack of coordination between various disaster management authorities and meteorological offices and preparedness has worsened the situation even further.

So, there is a need to reflect on the lessons from both past and present floods as Pakistan moves from relief to recovery and reconstruction efforts.

Impact of flash floods on Pakistan’s Economy

Pakistan is already reeling from economic and political crises as it has been hit by its worst floods in recent memory.

Torrential rains and flash floods have ravaged the country at a time when the economy is already fragile facing headwinds and the government is taking measures to stabilize it.

According to the Finance Minister of Pakistan, Miftah Ismail, the devastating flash floods in Pakistan have inflicted a loss of at least $10 billion on different sectors of the country’s struggling economy.

The Minister said that these were initial assessments that might escalate after conducting surveys on the ground.

The recent floods, caused by abnormally heavy monsoon rains, have adversely affected important and minor crops. This may impact the economic outlook through the agricultural performance of the country.

The country’s central bank said that heavy rains could severely impact the agricultural output of the country. It expects economic growth to fall from 6% last year to 3% to 4% this year.

Pakistan’s Minister for Planning and Development Ahsan Iqbal stated that 45% of the cotton crops had been washed away.

Moreover, many rice fields, as well as lands where vegetables and fruits are planted, have been inundated.

According to the data from the Finance Ministry, seasonal crops are critical to the economy, particularly cotton which makes up more than 60% of the country’s exports.

Alongside crops, more than 500,000 livestock have reportedly flourished in the floods adding a burden on the rural people.

The reports of Arif Habib Limited (AHL) a Pakistani stock brokerage, forecast the GDP growth will shrink to 2.49% in the fiscal year 2022-23, against the earlier assumptions of 2.97%.

According to an estimate, the current account deficit will rise by $1.98 billion. This is due to the import of food commodities and shrinking exports of textile, rice, and sugar.

The firm estimates that about 30% of the rice crop, 7% of the cotton crop, and 10% of the sugar cane have been destroyed by the floods. It is also estimated that about $800 million in textile exports would be lost.

Pakistan is currently facing a shortage of food supply and it is inevitable because of the disruptions due to floods. The shortage of food items will increase prices and put inflation further up.

It would also put an additional burden on our import bill. The International Rescue Committee (IRC) anticipates a sharp increase in food insecurity and a severe impact on the national economy.

However, this is significant to note that Finance Minister, Miftah Ismail has hinted at the option of importing vegetables and other edibles from the arch-rivals of India, to mitigate the flood-induced loss.

Global Response and Support

Pakistan has appealed for help from international donors as unprecedented rains trigger a humanitarian crisis and threaten the economy of the South Asian Nation.

The wealthier states having responsibility for climate change must remedy the historic injustices and assist low-emitting countries like Pakistan after deadly floods have shown the devastating impact of climate change.

The international community should step up and support Pakistan in such a troubling time. Foreign Minister of Pakistan Bilawal Bhutto said that Pakistan needs financial help to deal with overwhelming floods.

He hoped that financial institutions such as the International Monetary fund would take the economic fallout into account. Pakistan’s Prime Minister Shehbaz Sharif has formally requested the international community to pitch in for relief efforts.

On the appeal of Prime Minister Shehbaz Sharif, international organizations and financial institutions announced an immediate aid of more than $500 million for the flood-affected Pakistan.

The World Bank announced its emergency assistance of $350 million for flood-related activities. Apart from this World Bank will cooperate with Pakistan through a comprehensive plan for the restoration of infrastructure after the estimation of damages in the country.

Moreover, the Asian Development Bank (ADB) is expected to reprioritize its $25 million in funds. Additionally, it includes an $8 million grant, earlier committed for COVID-19 purposes.

The US Embassy in a statement said that Washington would provide $30 million in life-saving humanitarian assistance to support people and communities affected by severe flooding in Pakistan through the US Agency for International Development (USAID).

The World Food Program, a subsidiary of the United Nations, announced an emergency aid of $110 million for the flood victims.

Moreover, the UK aid announced an immediate aid of 1.5 million pounds. The UK aid has announced an additional 38 million pounds for short and long-term projects in the country.

China provides Pakistan with a batch of emergency humanitarian supplies, including 25,000 tents for flood-hit Pakistan.

According to China International Development Cooperation (CIDCA), the Chinese government announced an assistance package of RMB 400 million for flood victims of Pakistan.

The Red Cross Society of China provides $300,000 in emergency cash assistance to the Pakistan Red Crescent Society.

In addition, All-Pakistan Chinese Enterprises Association (APCEA) donated Rs15 million to the Prime Minister’s Relief Fund.

Also, UN Secretary-General Antonino Guterres will be visiting the most affected areas in Pakistan this week. He has called the international community for $160 million in flash appeals for flood aid for Pakistan.

Moreover, many other countries, including the United Kingdom, Turkey, and the United Arab Emirates, are providing assistance and materials to Pakistan for flood relief.

The Prime Minister has thanked the international institutions and states for helping Pakistan in the hour of need. The government is carrying out uninterrupted relief and rescue operations in the flood-affected areas of Pakistan.

Solutions

The government of Pakistan and individuals need to achieve some crucial points to prevent floods in Pakistan.

  1. Timely cleaning of storm drains
  2. Increase in plantation
  3. Property arrangement for storage tanks
  4. Construction of dams
  5. Keeping stock of dewatering pumps and similar machinery
Recommendations

The government of Pakistan needs to devise a plan to manage yearly flooding via integrated flood management strategies.

This strategy must include both structural and non-structural measures on how to prevent floods in Pakistan.

Effective flood management plans must ensure collaboration between different stakeholders. It includes local communities, flood victims, NGOs, funding organizations, and relevant government departments at all levels.

Conclusion

These small practices and initiatives can go a long way in preventing deadly situations during heavy floods in the monsoon season.

These tips on how to manage yearly flooding that occurs in the country, can reduce the disastrous impact of flash floods to a great extent, if not eliminate them.