Impacts of Floods

[VoiceOne]

Re: Impacts of Floods

@Faris_Udeen

Great questions we need to keep this isue going.

Infrastructure in many areas needs rebuilding altogether which could take a long time.

Agreed. This is also an opportunity..we can build new & modern infra-structure..can provide much needed employement for the poor.

@Faris_Udeen

Since much of Punjab breadbasket was affeccted wheat and rice stocks, both a staple product, have fallen sharply… theres allready a global shortage this new shortage in Pakistan could lead to an almost famine for many poorer people.

Disagree! The heavily affected areas are in KP and sindh. Less than 20% of the fertile land is affected in punjab..however..heaviest loss was in cotton crop.

As far as inflation is concerened:

• the core inflation is around 10-11 %..the SB raised the interest rate to 13.5% recently
• Food inflation is much higher and varies quite a bit. The price of sugar and atta almost doubled after the flood in part due to loss in crop because of flood & loss of infra-structure (causing disruption in transportation of food stuff), ramadan(food price always goes up >20% every year during festivity) and the inter-national wheat price shooting up due to heat wave in russia.
• Hopefully the price of everyday food item will come down in few months.