Economy reeling from flood impact: Mian Zahid

KARACHI: Mian Zahid Hussain, President Pakistan Businessmen and Intellectuals Forum & All Karachi Industrial Alliance, Chairman National Business Group Pakistan, Chairman Policy Advisory Board FPCCI, said Pakistan is grappling with the intense economic repercussions of the recent floods while simultaneously observing positive signs of stability and growing investor confidence.

The preliminary economic loss, estimated at USD 1.4 billion, or 0.33 percent of our GDP, starkly illustrates our susceptibility to the effects of climate change.

Hussain noted that the agriculture sector has been the hardest hit, with losses exceeding USD1 billion, and projections indicating a potential 15-20 percent drop in crop output in Punjab and Sindh.

This widespread agricultural devastation, particularly to key crops like rice, sugarcane, and cotton, threatens our food security and future export earnings.

He stated. The resulting supply chain disruptions, dislocation of five million people from their houses and livestock losses will be fueling inflationary pressure, with wheat prices reaching a two-year high.

He also highlighted the substantial damage to infrastructure, which has crippled trade and logistics and will require billions of dollars in long-term reconstruction.

Mian Zahid highlighted a positive trend in the Pakistan Stock Exchange, noting the KSE-100 index has surpassed 156,000 points.

This surge reflects strong underlying economic strength and investor confidence, aided by expectations of post-flood reconstruction in sectors like cement and steel.

He further acknowledged positive developments, such as rising pharmaceutical exports supported by the Special Investment Facilitation Council (SIFC), and the visit of a USA business delegation keen to invest in mines and minerals, demonstrates sustained international interest in Pakistan’s market.

Mian Zahid Hussain also called for a strategic and collaborative approach to the future.

“While the floods have imperiled our economic recovery, the positive signals from the PSX and the stabilizing policy response by the State Bank of Pakistan give us reason for optimism. The path forward requires us to invest in climate-resilient infrastructure.