Loss Estimate - Revised

Estimate of economic loss has been revised to USD 40 billion due to the destruction caused by the flooding

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Macro Bite # 111

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There is an acute sense of despair in all corners of the country. In the immediate term, families are likely to go hungry as employment dries up. Economists are predicting, however, that this is just the tip of the iceberg, and the full extent of the damage and loss suffered is likely to be much higher. Flood losses are likely to slash Pakistan's GDP growth for FY23 from 5% to 3%.

Pakistan spends billions on servicing debts to foreign lenders. It paid USD 15 billion on payments this year alone. That is over 80% of its total tax revenue. The UN Secretary-General, António Guterres, in his recent 'solidarity visit' to Pakistan has mentioned that he would strongly advocate for a 'debt-swap' Pakistan. This means that instead of paying back loans to foreign creditors - Pakistan should use that money to invest in climate resilience, investments in sustainable infrastructure, and a green transition of its economy.

GRAPHIC OF THE DAY

The National Flood Response and Coordination Center (NFRCC), a joint civil-military institute, has rejected the initial assessment of flood losses valuing USD 18 billion and the new estimate is 122% more than the initial estimate. This also surpasses the USD 30 billion projection declared by the UN Secretary-General, Antonio Guterres, last week

Source: National Flood Response and Coordination Center (NFRCC)

INSTAGRAM POST

Remittances August 2022 — www.instagram.com

⚫ Overseas Pakistanis remitted USD 2,724 million during August 2022, on a monthly basis remittances rose by 8% and by 1.5% compared to August 2021

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TWEET

António Guterres @antonioguterres

I have never seen climate carnage on the scale of the floods here in Pakistan. As our planet continues to warm, all countries will increasingly suffer losses and damage from climate beyond their capacity to adapt. This is a global crisis. It demands a global response.

🇵🇰 🌊 This is a global crisis. It demands a global response. António Guterres

What Else We’re Reading

• Floods in Pakistan: A health crisis of epic proportions (Al Jazeerah)

• Pakistan faces hunger crisis as floods wash away crops and livestock (Nikkei Asia)

About Us: Macro Pakistani is a data-driven research platform that aims to provide a basic understanding of Pakistan’s economy. If you have an interest in contemporary news but are currently overburdened with sensationalism and specialized vocabulary, we are the platform for you.

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