Business

Economic loss from floods in Pakistan reaches $18b

Published

2 years ago

Farwa

Economic losses have gone up further, says Centre.
Increase is mainly because agricultural crops have been destroyed.
New estimate states 8.25m acres of crops destroyed.

The rapid assessment cost on projected economic losses following floods as calculated by the Centre and endorsed by the provinces has gone up further to the tune of $17-$18 billion.

The economic losses have further increased mainly because agricultural crops have been destroyed across 8.25 million acres as compared to an initial assessment of 4.2 million acres. Cotton, rice, and minor crops have been damaged severely and if de-watering is not done properly, it can cause serious problems for wheat sowing.

Cotton crop has evaporated in most parts of the country and now wheat sowing is under threat.

The Ministry of National Food Security has been assigned to come up with a summary to increase the minimum support price of wheat for the coming crop. The authorities have held meetings with international donors and assured them that Pakistan would place an effective monitoring and evaluation system to utilise each and every penny to mitigate the flood losses in a transparent manner.

“The UN secretary-general is due Friday (today) for a three-day visit and Islamabad is going to share the rapid assessment cost with him. The international donors under the supervision of the World Bank are making their separate study on Damage and Need Assessment and then these figures will be reconciled,” official sources told The News Thursday.

The Ministry of Planning is undertaking an exercise to slash down the Public Sector Development Program (PSDP) by Rs250 to Rs300 billion to bring it down from Rs800 billion to Rs500 to Rs550 billion for the current fiscal year. These resources will be diverted toward the flood-affected areas.

When contacted, Minister of State for Finance Aisha Ghaus Pasha and inquired about the latest rapid assessment cost, she refused to share the exact information and said that the cost had escalated and efforts were underway to finalise it by giving a cut-off date.

Under the rapid assessment exercise, the government had initially envisaged the cost of economic losses to the tune of $10 to $12.5 billion but the revised estimates suggested that the accumulated cost of economic losses had escalated up to $17 to $18 billion.

The per capita income is projected to slow down in the wake of the reduced GDP growth. The government had envisaged a GDP growth rate of 5 percent for the current fiscal year. The IMF had recently projected that the GDP growth would be standing at 3.5 percent for the current fiscal year. However, the floods damaged the agriculture sector and the industrial sector also gave an indication of slowing down, so the GDP growth might be below two per cent.

Business

PSX surpasses the historical 71,500-point threshold.

Published

1 day ago

Farwa

Investors celebrated as the PSX finally crossed the historic 71,500 point threshold, signalling a critical turning point in the state of the economy in the country.

The KSE-100 index jumped more than 740 points, soaring to a record high of 71,650 points, demonstrating the tenacity and optimism that pervaded the Pakistani financial market.

This outstanding accomplishment indicates strong growth possibilities for the foreseeable future and demonstrates investors’ faith in the nation’s economic prospects.

The Pakistan Stock Exchange (PSX)’s KSE-100 index saw a minor decline of 60.92 points on Friday, or 0.09 percent, and ended the day at 70,483.66 points.

In the foreign exchange market, the US dollar lost value in relation to the Pakistani rupee at the same time.

Currency dealers claim that on the first day of the workweek, the value of the US dollar dropped by 11 paisas to Rs278.20 in the interbank market, significantly strengthening the rupee.

Business

Outsourcing: Investors from Turkey stop by the airport in Karachi

Published

1 day ago

Farwa

Turkish investors, who are interested in outsourcing Pakistan’s airport industry, sent a high-level team to Karachi Airport.

The domestic arrival and departure lounge at Karachi airport was visited by the Turkish investment group, according to information. The investors were briefed about the workings of the Karachi airport by a delegation of the Civil Aviation Authority, headed by Secretary Aviation Saif Anjum.

An update on the volume of people and business leaving the airport was also provided to Turkish investors. It is anticipated that the delegation would tour the cargo terminal and CAA headquarters today.

The nation’s three main airports, Karachi, Lahore, and Islamabad, were formerly to be outsourced by the federal government.

Interest in outsourcing three of Pakistan’s airports has been expressed by local parties as well as investors from Germany, France, the Netherlands, Qatar, the United Arab Emirates, Malaysia, and Turkiye.

The timeframe for proposal submission for Islamabad International Airport’s outsourcing was extended by the Civil Aviation Authority (CAA) earlier on March 21.

The government’s top objective in the process of outsourcing international airports, according to Prime Minister (PM) Shehbaz Sharif, is openness.

First, he stated that Pakistan is willing to participate in a public-private partnership to outsource a portion of the airport’s commercial activities.

Business

The inaugural flight of Azerbaijan Airlines is between Baku and Karachi.

Published

4 days ago

Farwa

The national airline of Azerbaijan launched direct flights from Baku to Karachi today. There will be two weekly flights on this route, on Thursdays and Sundays.

The first flight will land in Karachi, and Azerbaijan’s ambassador, Khazar Farhadov, will be there to greet it.

This evening also marks the departure of the inaugural flight from Karachi to Baku, in addition to the arrival of the flight from Baku.

Azerbaijan Airlines said last month that it would be growing its network and flight operations in Pakistan.

Aviation insiders have verified that Azerbaijan Airlines is preparing to launch service to Karachi in the coming month of April.

In addition to its current services in Islamabad and Lahore, the airline plans to launch its Karachi route on April 18, with the inaugural flight anticipated to depart on that date.

Azerbaijan Airlines has been given permission to operate flights on the Karachi route, according to sources within the Civil Aviation Authority (CAA).

Following a bilateral agreement between the two nations, Azerbaijan Airlines has been given permission to extend its operations in Pakistan.