Pakistani PM says his flooded country faces food shortages

Turkish President Recep Tayyip Erdogan (L) walks with Prime Minister of Pakistan Shehbaz Sharif upon his arrival during an official ceremony at the Presidential Complex in Ankara, Turkey on June 1, 2022. (AFP/File)
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Updated 12 September 2022
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Pakistani PM says his flooded country faces food shortages

  • In Pakistan, over 660,000 people are living at relief camps after floods damaged their homes
  • PM Sharif thanks Turkey for dispatching food, tents and medicine by trucks, aircraft and trains

ISLAMABAD: Pakistan is grappling with food shortages after deadly floods left the impoverished country’s agriculture belt underwater, the prime minister told the Turkish president by phone, as authorities scaled up efforts Monday to deliver food, tents and other items.

Shehbaz Sharif spoke to Turkish President Recep Tayyip Erdogan overnight to thank Turkey for dispatching food, tents and medicine by 12 military aircraft, four trains and Turkish Red Crescent trucks. The International Rescue Committee estimated that the floods have damaged more than 3.6 million acres of crops in Pakistan.

A government statement said Sharif briefed Erdogan about the government’s relief activities and sought assistance from Turkey in overcoming the “food shortage.” Sharif also sought help from Turkey on reconstruction work in the flood-hit areas.

More than 660,000 people, including women and children, are living at relief camps and in makeshift homes after floods damaged their homes across the country and forced them to move to safer places. Pakistan, the country’s military, UN agencies and local charities are providing food to these flood victims.

Pakistan heavily relies on its agriculture and occasionally exports its surplus wheat to Afghanistan and other countries. Now it is in talks to import badly needed wheat and vegetables, including to people not directly affected by floods.

Meanwhile, the price of vegetables and other food has started increasing.

Until last week, floodwater was covering around a third of Pakistan, including the country’s agriculture belt in eastern Punjab and southern Sundh provinces which are the main food basket. Initially, Pakistan said the floods caused $10 billion in damages, but authorities say the damages are far greater than the initial estimates.

That’s forced Pakistan and the United Nations to urge the international community to send more help.

In response, UN agencies and various countries, including the United States, have sent more than 60 planeloads of aid. Since last week, Washington has sent three military planes to deliver food.

Three more US military planes carrying aid were to land in Pakistan’s worst flood-hit southern Sindh province later Monday, according to a Foreign Ministry statement.

Washington days ago set up a humanitarian air bridge to flood-ravaged Pakistan to deliver aid through 20 flights, which will arrive in Pakistan before September 16. The US authorities also plan to distribute cash among needy people.

Last week, UN Secretary-General Antonio Guterres during a visit to Pakistan traveled to flood-hit areas, where deluges from floods are still causing damage.

Guterres has called on the world to stop “sleepwalking” through the dangerous environmental crisis. He assured Sharif in a meeting with him that he will do his best to highlight the ordeal of Pakistanis facing floods.

Planning Minister Ahsan Iqbal said at a news conference Monday that Pakistani authorities and international aid agencies are assessing the flood damage that has affected 33 million people. He said the government would proceed with transparency in the distribution of aid.

Meanwhile, the IRC, a prominent international aid group, on Monday warned of mounting economic losses, likely leading to food shortages and an increase in violence against women. In a statement, the group said the floods destroyed over 3.6 million acres of crops in Pakistan.

“The acute loss of farmland and agriculture is likely to be felt in the months and years ahead. It is vital that the humanitarian response remains fully funded in order to give the people of Pakistan the best chance of rebuilding their lives,” said Shabnam Baloch, IRC’s director in Pakistan.

She said so far the IRC has reached 29,000 women and girls with aid in flood-hit areas.

Deluges from the rising Indus river and the Lake Manchar in the Sindh province were still posing threat to Dadu, a district in the south where rescuers using boats were evacuating villagers to safer places Monday. Light rain is expected in flood-hit areas this week, according to the Meteorological Department.


Pakistan’s transportation strike could cause economic losses of $1 billion, warn analysts

Updated 41 min 22 sec ago
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Pakistan’s transportation strike could cause economic losses of $1 billion, warn analysts

  • Traders, textile mill owners say strike has cost $60 million per day in exports, port demurrages, detention charges
  • Analysts warn 10-day strike could threaten economic stability by deepening inflation, widening current account deficit

KARACHI: Pakistan’s ongoing transportation strike has the potential to cause economic losses of up to $1 billion and threaten macroeconomic stability in the country, a leading economist warned this week. 

Transport unions have been protesting against stricter enforcement of axle-load limits — legal caps on how much weight trucks can carry — as well as increases in toll taxes and what they describe as heavy-handed policing on highways and motorways.

The strike, which began on Dec. 8, is now in its tenth day. It has slowed the flow of goods between ports, industrial centers and markets, raising concerns over supply chains in an economy heavily reliant on road transport for domestic trade and exports. Trucking is the backbone of Pakistan’s logistics system, moving food, fuel, raw materials and manufactured goods. 

“We are expecting a tremendous impact of the ongoing transportation strike,” Ahsan Mehanti, CEO of Arif Habib Commodities, told Arab News on Tuesday. 

“I believe that the major impact could be to the tune of $1 billion. And the reason behind that is primarily Karachi being a business hub will be most impacted with the ongoing strike.”

While a section of the transporters, the All Pakistan Goods Transport Association (APGTA) called off the strike after successful talks with the Punjab government on Friday, the rest of the transporters have vowed to continue the disruption. 

Manufacturers and exporters from the textile industry, which earns Pakistan the highest amount in exports, have estimated their daily losses at more than $60 million. 

Kamran Arshad, chairman of the All Pakistan Textile Mills Association (APTMA), said these losses were on account of disruption to exports as well as demurrage and detention charges that affected traders are bound to pay at local ports.

“I have estimated disruption to as much as $60 million ($540 million for nine-day losses) worth of exports and demurrage and detention charges of up to $300 per container per day stuck at ports,” Arshad said.

Arshad lamented that the textile industry was facing a critical situation as raw materials and essential inputs were stuck at ports and not reaching factories. On the other hand, finished export consignments were also unable to reach ports, he said. 

“Containers are stuck at mills, ports and depots and inventories are building up,” the APTMA chief said. “And backlogs are growing by the day.”

Pakistan Textile Exporters Association (PTEA) Patron-in-Chief Khurram Mukhtar calculated Pakistan’s monthly average textile exports at $1.5 billion.

“An eight-day transport shutdown alone has already caused approximately $400 million in export losses, with severe supply chain disruptions on top,” Mukhtar said. 

’BIG HIT’ TO EXPORTS

Prime Minister Shehbaz Sharif has tasked his government to ensure sustained economic growth through an export-driven economy. However, Pakistan’s exports have shown far from promising results, falling by 15 percent to $2.4 billion in November, according to data by the Pakistan Bureau of Statistics (PBS). 

From the July-November period of this fiscal year, the country’s exports declined by six percent to $12.8 billion, while imports surged by 13 percent to $28.3 billion. This widened the trade deficit by 37 percent to $15.5 billion.

Arshad said other than financial losses, the trade industry was suffering from “serious reputational damage” when it came to international buyers due to the strike’s disruptions. 

“Missed delivery schedules result in cancelations and loss of future orders,” he told Arab News. “And once a buyer is lost, it is extremely difficult to regain their confidence.”

Rehan Hanif, president of the Karachi Chamber of Commerce and Industry (KCCI), agreed. 

“Our exports are already in trouble forcing us to run after dollars, so the exports are going to take a big hit,” Hanif explained. 

He urged the government to engage transporters and address their “genuine” demands immediately. 

Information Minister Attaullah Tarar and Finance Adviser Khurram Schehzad did not respond to queries sent by Arab News till the filing of this report. 

Hanif said the prolonged strike had created a huge backlog of cargos at local ports.

“They would have no space for more containers if this strike persisted for a couple of more days,” he said. “Pakistan’s daily losses from the strike are running in billions of rupees.”

POSSIBLE INFLATION SPIKE

However, Karachi Port Trust spokesperson Shariq Amin Farooqui rejected Hanif’s claims, saying that cargo “is coming and leaving” the country’s largest port smoothly. 

Pakistan’s inflation rose by 6.1 percent in November and is expected to fall in the SBP’s target range of 5 to 7 percent this financial year, which is ending in June. 

Pakistan’s current account balance reported a $112 million deficit in October from an $83 million surplus in September, according to the central bank. 

Mehanti warned the strike could pose dangers to Pakistan’s hard-earned macroeconomic stability.

“Inflation will be higher, and the current account deficit will be higher due to challenging economic situation,” he said.