Floods inflict losses of Rs3,856 billion

Economic losses calculated at Rs740b, NA panel told

ISLAMABAD:

The devastating floods that struck the country this year have so far caused an estimated Rs3,856 billion in damages, while the economy faces an additional Rs740 billion in potential losses, officials from the Ministry of Planning disclosed on Thursday.

The revelation came during a briefing at the meeting of the National Assembly Standing Committee on Economic Affairs, chaired by MNA Mirza Ikhtiar Baig at the Ministry of Economic Affairs.

Planning Division officials informed the committee that based on data collected from provinces, preliminary estimates of flood damages amounted to Rs 3,856 billion nationwide.

The economic potential losses were calculated at Rs740 billion. Data from Khyber Pakhtunkhwa has already been received, while further details are awaited from Punjab and Sindh. Initial figures indicate that Punjab alone has reported Rs 630 billion in damages.

Apart from Punjab's losses, 12,569 houses across the country were destroyed, and 248 bridges were damaged. The floods affected around 6.5 million people nationwide.

The National Disaster Management Authority (NDMA) officials told the committee that 5,768 rescue operations were carried out to save people during the floods. Flood victims have so far received 20,000 tons of relief supplies.

The federal government has disbursed Rs2 billion in compensation to the families of those who lost their lives, while provincial governments have also provided financial assistance to affected families.

The committee also held a detailed discussion on funding and projects related to recent flood damages. Officials from the Economic Affairs Division (EAD) briefed that the government had not yet sought assistance from any development partners after the floods.

A committee chaired by Planning Minister Ahsan Iqbal was formed to assess the damages, and so far four meetings of the committee have been held.

For technical expertise, the government has approached four international development partners, including the World Bank and the Asian Development Bank (ADB), so that appeals for aid could be made if required in the future.

During the session, participants also deliberated on including the Lyari Elevated Freight Corridor in the Public Sector Development Programme (PSDP).

Briefing the committee, National Highway Authority (NHA) officials explained that Karachi's traffic flows from the city toward the M-9 Motorway, and the Lyari Corridor project was designed to address the city's worsening traffic congestion.

Officials said the feasibility study for the new M-10 Motorway project would be completed by December, and efforts were underway to secure Saudi funding for its construction. Additionally, the Islamic Development Bank (ADB) has approved a loan of $470 million for the M-6 project.

Committee chairman Ikhtiar Baig expressed concern over heavy traffic in Karachi, noting that even today heavy vehicles enter the city before 11 pm and dumpers continue to claim lives.

NHA officials assured the committee that the Lyari Corridor would help reduce accidents in the city, but admitted that the project was not viable under a public-private partnership model. If included in the PSDP, it could be taken up in the next budget cycle.