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Flood Disaster Rehabilitation
The recent floods provide an opportunity for the banking industry
to increase financial inclusion, diversify its products on sustainable
basis and play its due role in rebuilding the national economy. The
floods have caused widespread devastation in seventy eight districts
across Pakistan with huge losses of wealth in the form of crops,
livestock, roads, infrastructure, public and private buildings, etc.
Moreover, the floods have rendered approximately twenty million
homeless and posed serious health risks for the affected.
This calamity provides an opportunity to start afresh and build a
platform to embark on new territory by diversifying products and
increasing financial inclusion which will help bring down poverty level
in the country
Agriculture sector, which accounts for 21% of GDP and 45% of
employment, has been particularly hard hit and the direct losses to
major crops have been estimated at PKR 281 billion by the Federal
Ministry of Food & Agriculture & SUPARCO. In addition to agriculture,
the manufacturing sector which depends on agricultural inputs, has
also been adversely affected. The total losses amount to about USD 50
Billion, about 27% of the GDP1
The present scenario does not bode well for the agenda on
financial inclusion as a significant proportion of the flood-hit population
could be pushed below the poverty line. Moreover, those already
excluded will have little access to formal financial services such as
savings or insurance mechanisms to re-build their asset base.
The financial institutions are urged to come forward and play
their due role in rebuilding of the affected areas as the State Bank and
the Government would not be able to do it alone. So, it is
recommended
1. Write-offs existing loans where prospects of recovery are
slim.
2. Deferral of Loan Repayment.
3. Restructuring/Rescheduling of overdue loans.
4. Reduced Mark up.
5. Provision of fresh credit at subsidized rate.
Flood Damage Assessment Report
By
National Disaster Management
Authority
Summary of Damages
Province Wise Summary of Damages & Losses
(As of 02 Oct 2010)
Area Total
Cropped areas
Province Affected Deaths Injured Houses Damaged Affected Population Affected Cattle head
(Hectares)
(Sq.km) Districts
Baluchistan 322 48 98 75,261 12 700,000 255,237 55,501
KPK* awaited 1,156 1,198 200,799 24 3,800,000 205,347 52,750
Punjab 14,047 110 350 509,814 11 8,200,000 774,610 3,572
Sind 30,132 393 1,202 1,114,629 17 7,184,550 1,056,758 263,703
AJK 1,800 71 87 7,106 7 200,000 30,820 288
G-B 7,500 183 60 2,830 7 100,000 3,635 4,669
Grand
Total 1961 2,995 1,910,439 78 20,184,550 2,326,407 324,982
Source: NDMA / PDMAs / SDMA * inclusive FATA
Flood Effected Districts
List of Flood Affected Districts
(As of 26 Sep 2010)
Total affected Severely
Name of Province Districts Affected Moderately affected
KPK* 24 10 14
Punjab 11 7 4
Sindh 17 9 8
Balochistan 12 2 10
AJK 7 1 6
GB 7 0 7
GRAND TOTAL 78 29 49
Communication Network Damages
Roads
Railways
Railway
Last Updated on Friday, 24 September 2010 17:01
1 Peshawar 1,600
2 Rawalpindi 100
3 Lahore 150
4 Multan 1,000
5 Sukkur 800
6 Karachi 600
7 Qutta 1,000
Total 5,250
Agriculture Damages
Last Updated on Monday, 20 September 2010 17:15
Financing Plan
The Consortium:
The funding will be provided by a consortium of five of the
largest commercial banks in Pakistan. The consortium will consist of
the following five banks:
1. United Bank Limited.
2. Habib Bank Limited.
3. National Bank Limited.
4. Allied Bank Limited.
5. Muslim Commercial Bank Limited.
1. Agriculture Financing.
3. Livestock Financing.
Program Costing
And
Debt Collection
Agriculture Financing:
Item Cost
(PKR)
Land Lease 10,000
Land Preparation 1,000
Seed and Sowing 2,000
Fertilizer 2,000
Irrigation 1,000
Harvesting Transport 3,000
Total Expenditure 19,000
Poultry Farming:
This cost estimate is based on the prefeasibility study carried out by SMEDA
(Small and Medium Enterprise Development Authority Government of Pakistan), as per
the requirements for a farm size of 5,000 birds. The costs are given as per average per
head animal cost. All other financing will be carried out on case per case and on market
rates for the equipment or machinery in question.