ISLAMABAD: Pakistan expects its economy to grow by around 3.5% in the current financial year despite widespread flood damage to crops and farmland, Finance Minister Muhammad Aurangzeb said in an interview to a Chinese media outlet on Tuesday.
Ranked among the world’s most climate-vulnerable countries, Pakistan witnessed yet another devastating monsoon this year that led to massive flooding, killing more than 1,000 people and 22,000 livestock while washing away crops spread over 2.2 million acres since late June.
The country’s agricultural heartland of Punjab was the worst hit after India released excess floodwaters that triggered a catastrophic deluge in late August. The situation affected more than 4.5 million people and forced the provincial administration to evacuate over 2.6 million from high-risk areas.
“We grew at 3% GDP last year,” Aurangzeb told China’s CGTN news channel. “We had estimated growth a little over 4% this year, but given the flood situation, this will shave off a certain percentage. Still, I’m quite hopeful that we can manage anything close to 3.5% during this fiscal year.”
The minister said Pakistan’s broader economy was on a recovery path, with inflation easing, foreign exchange reserves improving and international rating agencies restoring confidence in the country’s financial direction.
