Floods across country: 197,658 economic entities hit, causing loss of $5.3bn: SMEDA

LAHORE: The Small and Medium Enterprises Development Authority (SMEDA) on Monday revealed in its report that 197,658 economic establishments have been affected by floods across the country bearing an estimated loss of US$5.3 billion.

The preliminary assessment report on impact of recent floods on SMEs was launched by Hashim Raza, CEO SMEDA. Presidents of the Chambers of Commerce and Industry from Quetta, Dadu, DG Khan and Swat also addressed the launching ceremony via internet.

While addressing the launching ceremony CEO SMEDA Hashim Raza said that recent flood in Pakistan was one of the worst natural disasters in the country’s history.

More than 33 million people or 14% of the country’s total population has been affected by floods and heavy rains that have hit more than 90 of the 160 districts of the country. In Pakistan, 90 districts have been declared “calamity-hit.” Out of the total 90 districts, 32 belong to Balochistan, 24 Sindh, 17 Khyber Pakhtunkhwa, 9 Gilgit-Baltistan, 5 AJ&K and 3 Punjab, he added.

Referring to the report compiled by SMEDA, Hashim said that the effects of the 2022 flood were broadly analyzed in this study that aims to assess the impact of floods on SMEs at the provincial and district levels.

Analysis has been conducted for economic establishments across 71 districts to estimate direct and indirect losses, he said adding that both secondary data and primary data were gathered through site visits of Sindh, Khyber Pakhtunkhwa, Balochistan, and Punjab to derive estimates of Small and Medium-sized Enterprises (SMEs) affected by floods across the country and also identifying their need for assistance for revival.

CEO SMEDA admitted that the research had its limitations due to accessibility to flood affected areas and unavailability of updated district level data of economic establishments.

Highlighting results of the study, CEO SMEDA also said according to the findings 25% of the economic establishments had completely destroyed in the floods, whereas rest of the SMEs had suffered from a damage of over Rs1.4 billion in total because of disruption in supply chain, loss of customers, electricity disruption, roads, bridges and other transport network disruption. Over 20% of the surveyed SMEs have an estimated Annual sales turnover loss of Rs1.3 billion.

For revival, 86% Surveyed SMEs have demanded subsidized provision of specific products, inputs or services and 57% surveyed SMEs demanded access to new loans. In Sindh the businesses have demanded access to new loans on low interest rate to resume operations and subsidized provision of specific products, inputs or services.

In Punjab Small and Medium sized businesses affected from the flood need assistance with utility bill payments and reduced financing costs in order to restart business, SMEs in Balochistan demanded access to new loans and rental support.

Whereas, the surveyed SMEs in KP have called for the support from the government in the form of new loans, cash transfers and subsidized provision of products, inputs or services.

Copyright Business Recorder, 2022