Business / Pakistan flood crisis to hit GDP growth projection inflation also high rupee continues downward

Business | The severe floods caused by the devastating monsoon rains in Pakistan have worsened the economy. Inflation is on the seventh sky in Pakistan, while the estimated figures of economic growth rate i.e. GDP have also increased the tension of the government. According to a local media report, one-third of Pakistan has been submerged in floods, which is estimated to cause about $ 30 billion in damage.

Pakistan is fearing a two percent decline in the GDP growth figure in this situation of crisis. Pakistan's GDP growth rate was expected to be 5 percent in the financial year 2022-23, but due to floods and other reasons, it is expected to remain only 3 percent.

Inflation figures: According to data from the Pakistan Bureau of Statistics (PBS), inflation stood at 42.7 per cent year-on-year for the week ended September 8. The prices of vegetables have shot up after the damage caused by the floods. On a weekly basis, the prices of LPG, Atta, Egg, Grade and Pulses have registered a significant increase. Inflation in the last week stood at 45.5 per cent, the highest ever.

Rupee also fluctuates: Pakistani currency rupee is going through a phase of decline for almost a week. On Friday, it lost Rs 2.76 against the dollar to close at Rs 228.18 per dollar. It was 1.21 per cent lower than the closing price a day earlier.

Impact on 33 million people: According to Pakistani media 'The Dawn', the current floods are affecting 33 million people across the country. About 60 lakh flood-affected people are living in relief camps. Meanwhile, the National Disaster Management Authority (NDMA) said that the death toll in the floods has risen to 1,396, while the total number of injured is over 12,700.