Pakistan requires over $12 billion to rebuild infrastructure damaged by floods — experts

This aerial photograph taken on September 5, 2022 shows flooded residential areas after heavy monsoon rains in Dera Allah Yar city of Pakistan's Balochistan province. (AFP)
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Updated 19 September 2022
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Pakistan requires over $12 billion to rebuild infrastructure damaged by floods — experts

  • Since June 14, floods in Pakistan have killed over 1,500, destroyed crops and critical infrastructure
  • Economists doubt Pakistan will amass huge financial support from world for rehabilitation activities

ISLAMABAD: The cost of reconstructing Pakistan’s infrastructure damaged by devastating floods could exceed $12 billion, twice the size of the country’s $6 billion loan program with the International Monetary Fund (IMF), and the process may take up to two years, construction and financial experts said on Sunday.

Record monsoon rains have caused flash floods to deal a severe blow to already cash-strapped Pakistan’s economy. The country has suffered huge damages to its infrastructure since mid-June, with over 1,500 casualties reported across Pakistan and swathes of crops destroyed by deluges.

The worst ever floods in Pakistan’s history have destroyed 13,0835 kilometers of roads, 375 bridges and 194,3978 houses. Of these, 778,560 houses have been fully damaged due to the floods, says Pakistan’s National Disaster Management Authority (NDMA).

Experts associated with Pakistan’s construction business estimate a whopping Rs 2.735 trillion ($12.32 billion) would have to be spent to rehabilitate and rebuild houses, roads and bridges.

“The average cost of repairing a house is Rs 900,000 while the reconstruction cost of a fully damaged house is estimated at Rs 1.5 million,” Saeed Ahmed Mughal, secretary information of Karachi Contractors Association, a representative body of companies mainly working on government projects, told Arab News on Sunday.

“The per kilometer road cost is Rs 32 million and the construction of a bridge would cost Rs 300 million, based on the current market rate,” Mughal disclosed. “These calculations are based on the tender prices of various similar projects currently going on in [various] parts of the country.”

The breakup of the total cost, through simple calculations based on current tender prices, show that the cost of 114,478 partially damaged houses would amount to Rs 1.030 trillion or $4.6 billion while the reconstruction of 778,560 fully damaged houses would amount to Rs 1.167 trillion or $5.2 billion.

Pakistan requires Rs 425 billion or $1.9 billion to reconstruct 13,083 kilometers of road network damaged by floods while Rs 112.5 billion or $507 million would be required to reconstruct 375 destroyed bridges.

Pakistani constructors and developers hope the country would be able to repair and reconstruct a major chunk of the damaged infrastructure within two years.

“Reconstruction activities will take at least two years to recoup some of the damages incurred after [devastation caused by] floods, particularly in the housing sector,” Hanif Memon, Chairman of the Association of Builders and Developers of Pakistan (ABAD), a body comprising builders and developers, told Arab News.

Memon said his organization was working on a project to provide basic shelter to flood victims in Pakistan’s southern Sindh province at the lowest rates. “Within a week we are going to launch moveable and immovable shelter houses for victims starting from Sindh. The cost is estimated to be between Rs 30,000 to around Rs 85,000 for each unit,” he added.

However, constructors fear prices of construction materials would go up after construction activities pick up.

“The biggest challenge is to maintain prices of construction materials currently when hoarding and artificial manipulation for financial gains goes on unchecked,” Memon said. “The government needs to come up with a legal framework to penalize hoarders of materials in such a painful situation,” Memon added.

Reeling from economic woes, Pakistan last month revived a $6 billion IMF loan program and had it extended till June 2023. Re-phasing and augmentation of the loan’s access by about $500 million would bring the total amount of funds to $6.5 billion, the Fund said.

The South Asian country still needs massive financial support from the world to recover from the damages, which U.N. Secretary-General Antonio Guterres and Pakistani officials have estimated, amounts to $30 billion.

However, economists doubt Pakistan would be able to amass huge financial support for its relief and rehabilitation efforts. “I don’t think the aid would reach even a couple of billion dollars,” Yousuf Nazar, a London-based Economist, told Arab News on Sunday.

“I fear that we may be headed for an eventual default if debt relief is not provided to Pakistan.”

Pakistan’s construction industry contributes around 14.2% to the overall economy of the country, as per fiscal year 2021 estimates. Stakeholders from the construction sector hope the share would increase after rebuilding activities begin.


Pakistani finance minister, Saudi Fund for Development discuss funding for dam, highway

Updated 6 sec ago
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Pakistani finance minister, Saudi Fund for Development discuss funding for dam, highway

  • Aurangzeb is in Washington for IMF and World Bank spring meetings
  • Saudi FM was recently in Pakistan to discuss investment projects

ISLAMABAD: Federal Minister for Finance Muhammad Aurangzeb met with Sultan Abdulrahman Al-Marshad, CEO Saudi Fund for Development (SFD), in Washington on Thursday and discussed investable projects, including a dam and a major national highway. 
Aurangzeb is in Washington for IMF and World Bank spring meetings. As he launches negotiations for a new three-year multi-billion-dollar bailout deal from the IMF, Saudi Foreign Minister Prince Faisal bin Farhan Al Saud was in Islamabad earlier this week where he said Riyadh would be “moving ahead significantly” to invest in projects in the South Asian nation. 
The Saudi official’s visit followed a meeting in Makkah between Prime Minister Shehbaz Sharif and Saudi Crown Prince Mohammed bin Salman in which the Kingdom had pledged to expedite $5 billion in investments.
“Briefed him [SFD CEO] about his recent visit to Saudi Arabia and that of Saudi delegation to Pakistan during this week,” the finance ministry said about the meeting between the Pakistani finance minister and the Saudi official in Washington. 
“Expressed satisfaction with the progress of ongoing projects. Discussed the funding of Diamer Bhasha dam and N-25 from Karachi to Chaman. Informed that Pakistan would pitch bankable and investable projects to Saudi investors.”
Diamer-Bhasha Dam is a concrete-filled gravity dam, in the preliminary stages of construction, on the River Indus between Kohistan district in Khyber Pakhtunkhwa and Diamer district in Gilgit Baltistan. Upon completion, the dam dam would produce 4800 megawatts of electricity through hydro-power generation, store an extra 10.5 cubic kilometers of water for Pakistan that would be used for irrigation and drinking, extend the life of Tarbela Dam located downstream by 35 years, and control flood damage by the River Indus downstream during high floods.
The N-25 or National Highway 25 is an 813 km national highway in Pakistan which extends along from Karachi, Pakistan’s commercial hub, in Sindh province to the Chaman border via Quetta in the Balochistan province of Pakistan.
During the Saudi FM’s visit this week, investments in the Pakistani sectors of mining and minerals, agriculture, energy, information technology and infrastructure development were discussed. Speaking to journalists on Thursday, Foreign Minister Ishaq Dar said Pakistan had pitched an “epic menu” of investment projects worth $30 billion to Riyadh during Prince Faisal’s visit. 
Pakistan and Saudi Arabia enjoy strong trade, defense and cultural ties. The Kingdom is home to over 2.7 million Pakistani expatriates and the top source of remittances to the cash-strapped South Asian country.


3.51 billion phone app downloads in Pakistan in 2023 amid spending surge — report

Updated 39 min 42 sec ago
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3.51 billion phone app downloads in Pakistan in 2023 amid spending surge — report

  • After two years of being fastest growing major market, new app downloads from Pakistan tapered off in 2023
  • Decline was in line with global slowdown that included many peer countries such as Egypt, Indonesia, Vietnam

KARACHI: Mobile app downloads in Pakistan declined to 3.51 billion in 2023 from 3.52 billion downloads last year while consumer spending rose to over $87 million from $82 million, according to a report released on Thursday.
Globally, the mobile app industry witnessed some recalibration where growth in new installs moderated 0.8 percent to reach 257 billion while consumer spending edged up 2.4 percent to $171 billion, according to a report by Data Darbar, a data and market intelligence platform, and Emirati streaming platform Begin.
“After two years of being the fastest growing major market, new app downloads from Pakistan tapered off slightly in 2023,” Natasha Uderani, co-founder of Data Darbar, said in a statement issued on Thursday.
The decline was in line with the global slowdown where many peer countries, such as Egypt, Indonesia and Vietnam, experienced similar trends, Uderani said.
Just over a third of all Pakistani downloads during 2023 were games while the share of apps stood at 64 percent. This aligned with the global trend where 34 percent of the installs were for apps and the remaining 66 percent for games.
However, with continuous decline in the cost of broadband, Pakistanis were now consuming more mobile data than ever, which meant that apps would take center stage for the country’s digitalization wave and the growth in downloads will reaccelerate in the coming years.
Meta and ByteDance dominated the most downloaded apps chart, with Tiktok comfortably taking the lead at almost 32 million installs during 2023 while WhatsApp Business followed behind, the data showed.
This was in line with the global trend where the two big tech giants remained the top publishers. Among games, the offline habits replicated in the online realm as three of the five most downloaded games in Pakistan were Ludo apps.
Among categories where publishers performed well, entertainment and finance stood out with downloads of 172 million and 144 million, respectively. The former featured Jazz-owned Tamasha in the top spot while Telenor’s Easypaisa led in the latter.
“The rise of streaming and finance apps in Pakistan underscores the underlying shift toward mobile for the delivery of not only entertainment but also banking services,” said Jonathan Mark, chief commercial officer of Begin, a UAE-headquartered streaming service launching in the GCC region and South Asia.
“As consumers become more tech-savvy and their demand for digital services increases, we expect to see further growth and innovation in these and other app categories.”
Pakistanis spent about 99 billion hours using mobile apps where 7.5GB average data was consumed by the users per month. This translates into a jump of 13.8 percent compared to 87 billion hours in 2022, meaning Pakistanis spent an additional 12 billion hours on their mobiles during the year, the report added.
The South Asian nation, in line with the global trends, also experienced a continuous decline in the average cost of one gigabyte (GB) of data. Compared to the FY18 levels, cost has plunged by 71.4 percent to Rs32.8. However, over the last two years, the rate of decline has moderated noticeably and is now in just single digits.
The total cellular subscriptions in Pakistan fell annually to close FY23 at 190.9 million, down 1.9 percent from 194.6 million, first instance of decline in at least six years, and possibly on record.
Both Jazz and Telenor, the two largest telecoms, contributed to the downward trend with their subscriptions falling by 4.1 million and 3.1 million, respectively, according to the report.
On the supply side, the total apps published by Pakistani developers continued its downward slide and hit just over 4,800 in 2023, down 11.4 percent. This was almost singularly driven by Google Play, where the count of Android apps fell by 600. Consequently, the share of iOS in the aggregate edged up to 22.3 percent.


Rain wipes out first Pakistan-New Zealand T20 after just two balls

Updated 18 April 2024
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Rain wipes out first Pakistan-New Zealand T20 after just two balls

  • Fast bowler Mohammad Amir returned to international cricket after nearly four years
  • Having come out of retirement last month, Amir’s participation was limited to just fielding

RAWALPINDI: Heavy rain caused the first Twenty20 international between Pakistan and New Zealand to be abandoned after just two deliveries in Rawalpindi on Thursday.
New Zealand skipper Michael Bracewell won the toss, which had also been delayed by 30 minutes, and opted to bat but no action was possible for two-and-a-half hours.
Umpires Ahsan Raza and Aleem Dar then announced a five-over-a-side game at 10:10 local time (9:10 GMT).
Pakistan paceman Shaheen Shah Afridi conceded two leg-byes to debutant Tim Robinson off the first ball before bowling the batsman with a sharp delivery off the next.
But as soon as the Pakistan fielders started celebrating the wicket, the rain returned to force an abandonment.
Fast bowler Mohammad Amir returned to international cricket after nearly four years, having come out of retirement last month, but his participation was limited to just fielding.
The 32-year-old retired in December 2020 after being dropped from the side but changed his mind last month and decided to restart his career, which had already been stalled by a match-fixing ban in 2010.
Pakistan handed T20I caps to batsman Usman Khan, spinner Abrar Ahmed and all-rounder Muhammad Irfan Khan, while Robinson debuted for New Zealand.
The remaining matches are in Rawalpindi on April 20 and 21 and in Lahore on April 25 and 27.
The series gives a chance to both teams to test their bench strength ahead of the Twenty20 World Cup to be held in June in the United States and the West Indies.
New Zealand are without nine key players, including skipper Kane Williamson, who are playing in the ongoing Indian Premier League.


Five custom officials among six killed in gun attack in northwest Pakistan

Updated 18 April 2024
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Five custom officials among six killed in gun attack in northwest Pakistan

  • Officials of the custom department attacked while on routine patrol in Dera Ismail Khan 
  • Latest killings come amid renewed violence in northwestern and southwestern regions

PESHAWAR: Six people, including five officials of the customs department, were killed and another wounded on Thursday when gunmen opened fire on their vehicle in the northwestern Khyber Pakhtunkhwa province, police and rescue officials said.
Officials of the custom department were out for routine patrol in Dera Ismail Khan city when their vehicle came under attack in the jurisdiction of Draban Police Station, Regional Police Officer Nasir Hussain Satti told Arab News.
“As terrorists started firing on the custom officials, the driver lost control of the vehicle,” Hussain said. 
“As a result, their car collided head-on with another vehicle coming from the opposite direction, leaving five officials and a girl dead on the spot while one person suffered injuries.”
KP Chief Minister Ali Amin Gandapur condemned the incident.
“The incident is extremely tragic. Police should take all measures to arrest elements behind the attack,” a statement quoting the chief minister said.
Aziz Dotani, a spokesman at DI Khan district’s Rescue 1122 service, said a relief team promptly rushed to the area to transport bodies to the nearest medical facility.
The latest killings come at a time of renewed militant violence in Pakistan’s northwestern and southwestern regions, especially after the banned Tehreek-e-Taliban Pakistan (TTP) called off its fragile, months-long truce with the government in November 2022.
While there has been a spike in militant attacks across the northwest and southwest of the country, militants have particularly attacked policemen in Khyber Pakhtunkhwa in recent weeks. 
Earlier this month, unidentified gunmen shot dead a policeman in the restive North Waziristan tribal district. Separately, an official working with the provincial counterterrorism department and a senior cleric affiliated with the Jamiat Ulema Islam religious political party were shot dead in two separate incidents of “targeted killings” in the North Waziristan tribal district, according to police.
While no group immediately claimed responsibility for the latest killings, suspicion is likely to fall on the TTP, which has had a significant presence in KP before being driven out as a result of successive military operations over the years. Pakistan says the TTP is now mostly based in hideouts in neighboring Afghanistan, which the Taliban denies. 
Last month, seven Pakistani soldiers, including two army officers, were killed in a militant attack in North Waziristan, according to the Pakistani military. The attack led the Pakistani military to carry out rare airstrikes against suspected TTP hideouts inside Afghanistan on March 18, killing eight people. The strikes prompted Afghan forces to fire back at Pakistani soldiers along the border.
Afghan Deputy Interior Minister Mohammad Nabi Omari has urged Pakistan and the banned TTP to start negotiations afresh but Pakistan has rejected the Afghan minister’s suggestion, urging Kabul to take action against militant groups operating from its soil.
Both Pakistan and Afghanistan have traded blame in recent months over who is responsible for the recent spate of militant attacks in Pakistan. 
Islamabad says the attacks are launched mostly by TTP members who operate from safe havens in Afghanistan. Kabul denies this and blames Islamabad for not being able to handle its own security challenges.


Seven killed in southwest Pakistan as heavy rains continue to wreak havoc nationwide

Updated 18 April 2024
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Seven killed in southwest Pakistan as heavy rains continue to wreak havoc nationwide

  • At least 33 people killed and 46 injured in various rain-related incidents in northwestern Pakistan
  • Pakistan is ranked fifth most vulnerable country to climate change according to Global Climate Risk Index

QUETTA: Seven people including a woman were killed in southwestern Pakistan as rains continue to wreak havoc in the South Asian nation ranked as the fifth most vulnerable country to climate change according to the Global Climate Risk Index.
Heavy rains in the last three weeks have triggered landslides and flash floods in several parts of Pakistan. 
On Thursday, seven people were killed in the southwestern Balochistan province, officials in the town of Chaman here the deaths took place said. 
“In the first incident a car drove into flood waters in Mashan Talab situated on the outskirts of Chaman,” Deputy Commissioner Chaman Raja Atthar Abbas told Arab News.
“Five men sitting inside the vehicle drowned in flood water while two people including a woman were killed after a mud wall fell on them on College road.” 
Torrential rains had caused “severe damage” in Chaman and its surrounding areas as dozens of mud house collapsed in the last two days of rains, Abbas added. 
Separately, at least 33 people were killed and another 46 injured in various rain-related incidents in Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province in the last six days, the Provincial Disaster Management Authority (PDMA) said on Thursday.
Rains that began last Friday had completely destroyed 336 houses and partially damaged another 1,606 in different districts across the province, according to the PDMA.
The incidents occurred in Khyber, Upper and Lower Dir, Upper and Lower Chitral, Swat, Bajaur, Shangla, Karak, Tank, Mardan, Peshawar, Charsadda, Hangu, Battagram, Dera Ismail Khan and other districts.
“The deceased include 17 children, eight men, eight women, while the injured included 32 men, six women and eight children,” the PDMA said in its daily situation report on Thursday.
On Wednesday, the authority had warned of another spell of heavy rains in the province from April 17 till April 21, which could trigger landslides and flash floods.
In 2022, downpours swelled rivers and at one point flooded a third of Pakistan, killing 1,739 people. The floods also caused $30 billion in damages, from which Pakistan is still trying to rebuild.