Pakistan Suffers $30 Billion Blow in Flood Losses, Says State Bank

Last year’s floods resulted in approximately $30 billion in economic damages, with Sindh suffering the greatest losses in terms of people, infrastructure, housing, and livestock.

The devastating floods impacted more than 33 million people, and more than 1,700 deaths were reported, according to the most recent figures from SBP. More than 400 bridges, 2.3 million homes, and 13,000 kilometers of roads were severely damaged, which interfered with rescue and relief efforts and made it difficult to reach some of the flood-affected regions. According to the most recent estimates, the severe flooding and subsequent extensive devastation caused $30 billion in total economic losses.

The prolonged monsoon rains and associated flash floods in FY23 devastated Pakistan to a great extent at a time when the nation was facing several financial difficulties. The majority of the 94 districts affected by the floods were in Balochistan, Sindh, and Khyber Pakhtunkhwa (KP), and 19 of the 25 poorest districts in the nation were among them. These unprecedented floods had a negative impact on millions of people, crops, animals, vital infrastructure, and human settlements.

Housing, at Rs. 1.2 trillion ($5.6 billion), agriculture, food, livestock, and fisheries, at Rs. 800 billion ($3.7 billion), and transportation and communications, at Rs. 701 billion ($3.3 billion), are the sectors that suffered the greatest harm. Transportation ($1.1 trillion), housing ($2.8 billion), agriculture, food, livestock, and fisheries ($4.0 billion), and transport and communications ($5.0 billion) are the sectors with the highest reconstruction and recovery costs.

All economic sectors’ development was harmed by the unprecedented floods. A slowdown in the industry and services via multiple channels was caused by the agricultural sector’s significant losses, which resulted from damage to cattle and crops. Additionally, this has sparked worries about food security and called for the import of food grains to fill the supply-demand mismatch.

The country’s heightened susceptibility to climate change is shown by altering rainfall patterns and severe weather occurrences. Due to heavy rains and quickly melting glaciers, it is possible that the region impacted by floods may grow in the future. In light of this, Pakistan must devise and implement a multifaceted plan to successfully combat the consequences of climate change and cope with natural catastrophes.