Karachi: Floods in Pakistan have inflicted over $1 billion in damage to the nation's agriculture sector, posing a significant threat to food security, while also leading to a 15-20 percent decline in crop yields in Punjab and Sindh, according to Mian Zahid Hussain, President of the Pakistan Businessmen and Intellectuals Forum.

The devastating floods have affected key crops such as rice, sugarcane, and cotton. The financial impact is estimated at $1.4 billion, equating to 0.33 percent of Pakistan's GDP. Additionally, the dislocation of five million people and livestock losses have further strained the economy, contributing to inflationary pressures and pushing wheat prices to a two-year high.

Despite these challenges, Mian Zahid Hussain highlighted signs of economic resilience, with the Pakistan Stock Exchange's KSE-100 index exceeding 156,000 points. This uptick signals strong economic fundamentals and growing investor confidence, particularly in anticipation of post-flood reconstruction in the cement and steel sectors.

He also pointed to rising pharmaceutical exports, facilitated by the Special Investment Facilitation Council, and a visit from a U.S. business delegation interested in investing in Pakistan's mines and minerals sector as evidence of sustained international interest.

Hussain emphasized the importance of a strategic approach to recovery, advocating for investments in climate-resilient infrastructure to secure the nation's economic future. He expressed optimism in the stabilizing policy response by the State Bank of Pakistan, suggesting a pathway to recovery amid the challenges posed by the floods.