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The cost of the floods in Pakistan has reached $18 billion.

The Centre’s estimate of the fast assessment cost of anticipated economic losses following floods, which the provinces supported, has increased further to the tune of $17–$18 billion.

Due to the destruction of agricultural crops on 8.25 million acres as opposed to the previous estimate of 4.2 million acres, the economic losses have significantly escalated. Significant damage has been done to minor crops such as cotton, rice, and minor crops, and improper de-watering might have a negative impact on the sowing of wheat.

Most of the country’s cotton crop has vanished, and now wheat planting is in jeopardy.A summary for raising the minimum support price of wheat for the upcoming harvest has been tasked to the Ministry of National Food Security.

The officials met with international donors and gave them assurances that Pakistan would set up an efficient monitoring and assessment mechanism to use every dollar to transparently reduce flood losses.

“The UN secretary-general is scheduled for a three-day visit on Friday (today), and Islamabad will split the cost of the fast assessment with him. International donors working under the World Bank’s supervision are currently completing separate studies on damage and need assessments, after which these numbers will be compared,

The Public Sector Development Program (PSDP) is being reduced by 250–300 billion rupees by the Ministry of Planning, from Rs800 billion to Rs500–550 billion for the current fiscal year. The flood-affected areas will receive these resources instead.

When asked about the most recent rapid assessment cost, Minister of State for Finance Aisha Ghaus Pasha declined to provide specific details and instead stated that attempts were being made to finalise the cost by providing a deadline.

The government had first estimated that the rapid assessment exercise would result in economic losses costing $10 to $12.5 billion, but the updated estimates indicated that the total cost of economic losses had increased to $17 to $18 billion.

Following the slower GDP growth, a slowdown in per capita income is anticipated. For this fiscal year, the government had projected a GDP growth rate of 5%. The IMF has predicted that the GDP growth for the current fiscal year would be 3.5 percent. The industrial sector also showed signs of slowing down, and the floods caused damage to the agricultural sector, thus the GDP growth may go below 2%.