According to the ministry of Finance Pakistan, the recent worst floods’ destruction in the history of Pakistan; can cause Economic growth rate to reach to the level of 0% to 2%. The ministry of finance has announced that targeted 4.5% GDP growth rate cannot be achieved this year. The ministry official also said that we are progressing towards the actual assessment of the losses, but it may take some time. We think the estimated lowest growth rate would be zero percent at least.
Last year the economic growth was 4.1%. The zero percent growth rate is estimated keeping in view the damages to the crops and livestock. About 25% of cotton crop has been destroyed due to recent floods countrywide. On the other hand, Asian Development Bank of Pakistan has estimated the economic growth rate will be up to 3%. The Pakistan Planning Commission has also estimated the growth rate figure somewhat from 1% to 2%.