Federal Minister for Finance and income Miftah Ismail on On Saturday, they said that the Ministry of Finance estimates losses with an accuracy of of $18.5 billion due to floods, greatly increasing the earlier estimate that the figure was around $10 billion.
Speech at a meeting at the Lahore Chamber of Trade and Industry (LCCI), Mifta also emphasized government Won’t let Pakistan’s textile mills ‘idle’, stressing that damage to the cotton crop means the country will have to increase imports of product.
“The entire cotton crop of Sindh was destroyed”, said the financial minister. “We will have to import this cotton. option.
“There is no way we will leave our textile factories idle. We will put them with cotton and also supply gas and electricity, no matter what we have to do.
“According to the Ministry of Finance, the losses amount to at least $18.5 billion. Two-thirds of Sindh rice the harvest was destroyed20% of sugar cane was destroyed. We’ve been through a lot of pain.”
The destruction was caused floods led by record heavy rains that hit Pakistan from north South, killing over 1300 people displacing millions from them homes and large-scale damage to infrastructure. The agricultural sector of the country was the most difficult hit especially in Sindh and Balochistan, with harvest of cotton wool and tomatoes are mashed off.
Mifta stated that the Pakistan Bureau of Statistics estimate losses in the billions incurred on private property. “We will have to rebuild about 6500km of Road network246 bridges and 1.7 million homes Was destroyed.
“Sind Chief Minister Murad Ali Shah said that if we turn on the dirt-homes, there were still 3 million destroyed.”
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Mifta repeated that if government would not apply to the International Monetary Fund (IMF), Pakistan would default.
“It was clear to us that going to the IMF was necessary or Pakistan would have defaulted.”
Speaking of rising electricity tariffs, Miftah said that government did not impose any new taxes, but passed on growth in Prices of fuel oil and LNG.
“LNG shipment what cost $34 million is now being bought for $150 million. government can not purchase more There is no more LNG,” he said.
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Finance minister also unequivocally said introductory letters of credit for “pure” importers serving the domestic market market shouldn’t have happened.
“It will be easier for exporters to get letters of credit. But I can not allow net importers who sell to an internal audience to open their LC.”
Pakistan has recently moved to a selective in LC resolution for enterprises in Pakistan, in his desire to control decline of rupee. It has previously imposed import restrictions, banning domestic shipments. of luxury goods until the ban is lifted, but with warnings.