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Economic loss from floods in Pakistan reaches $18b

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  • 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.

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With a loss of 32 paisas, the US dollar is now trading at 277 rupees on the interbank market.

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In the Interbank market, the United States dollar is currently trading at 277 rupees and 63 paise, indicating a depreciation of 32 paise. Yesterday, it reached a closing price of 277 rupees and 95 paise on the Interbank market.

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The price of gold has skyrocketed in Pakistan.

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Pakistan’s gold price recovered on Friday following a sharp drop the day before, mirroring worldwide market patterns.

According to data released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 24-karat gold per tola rose by Rs2,000 in the local market, ending at Rs278,800.

Likewise, the cost of 10 grams of 24-karat gold increased by Rs1,715 to Rs239,026.

With an extra $20 premium, the price of gold increased by $21 on Friday to $2,683 per ounce on the global market as well.

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The PSX-100 index reaches a record high and surpasses 93,000 points.

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Historically, the Pakistan Stock Exchange (PSX) exceeded the 93,000-point threshold for the first time, with the KSE-100 index increasing by 480 points to attain a record high of 93,001 points.

A significant milestone was reached on the final business day of the week, establishing a new record for the nation’s stock market.

Economists ascribe the market’s expansion to expectations of an enhanced economic rating for Pakistan and a favorable perspective on economic reforms. The session commenced positively, with the 100 index initially increasing by 250 points, reaching 92,770 points prior to the day’s zenith. The market concluded the prior day at 92,520 points.

Simultaneously, the Pakistani rupee appreciated as the dollar decreased by 20 paisa in the interbank market, now valued at 277.75 rupees. Economists attribute this enhancement to heightened remittances and a current account surplus, which have strengthened the rupee’s status.

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