The devastating flood in Pakistan had destroyed more than half of the economy of the country. The country which was already facing several other crises including terrorism, poverty, corruption, illiteracy has now hit by another challenge in the form of flood. Now Hundreds of thousands have lost their homes, drinking water is filthy and contaminated, and food is scarce.
Pakistan’s towns, villages, crops, livestock, personal possessions and infrastructure have been completely washed away. Beyond the clear social and political argument is the economic outcome. There predictably will be economic fallout from the evolving situation. In a country where a quarter of the economy is reliant on agriculture for food and jobs, it is obvious that economic growth will be effected. The scarcity in food and material goods for both internal use and exporting is the biggest impact on the economic growth potential of Pakistan.
An impact to the Pakistan economy will be the lack of agricultural goods. With large amount of damage to agriculture and billions of dollars worth of crops and livestock destroyed, the economy took a major hit. The results of such a terrible event will shape the countries supply and demand chain. The supply of food will decrease which will drive up demand. The income effect will decrease the quantity demanded lowering the purchasing power of consumers. This will cause a decrease in quantity supplied which will have a snowball effect on development.
Pakistan has to be a truly strong and influential network, where we have to seek people who share a common dream for the future of Pakistan. The dream is to target key areas where change is typical to make a positive impact on the lives of thousands of people; education, health, government responsibility, energy and communications.
One look at the devastating men and women walking through brown water up to their chests makes all of us feel grateful for our comfortable and dry homes.Today The Pakistanis need us.
Amna Tariq
10U0628
