What were the economic effects of flooding 2010 in terms of food?

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1. Guest2930
   

   On 7 September 2010, the International Labour Organization reported that more than 5.3 million jobs have been lost due to the floods, emphasizing that "productive and labor intensive job creation programmes are urgently needed to lift millions of people out of poverty that has been aggravated by flood damage".] The GDP growth rate of 4% prior to the floods may turn negative with the estimates ranging from -2% to -5% of GDP. Though the GDP growth may improve in 2011 and beyond, it will be several years before it can return to the 4% level of 2009. As a result, Pakistan is unlikely to meet the IMF's target budget deficit cap of 5.1% of GDP, and the existing $55 billion of external debt is set to grow. The loss of crops will hit the textile manufacturing which is the largest export sector of Pakistan. Furthermore, the loss of over 10 million heads of livestock's along with the loss of other crops will bring down the total agricultural production by more than 15%. Toyota and Unilever Pakistan have said that the floods may sap growth, necessitating production cuts as people struggle to cope with the destruction. Parvez Ghias the chief executive of Pakistan's largest auto motor manufacturer Toyota described the economy's state as "fragile". Nationwide car sales are predicted to fall as much as 25%, forcing automakers to reduce production in October 2010 from the pre-flood level of 200 cars per day. The milk supplies have also fallen by 15%, which will cause the retail price of milk to increase by Pk Rs 4 (5 US cents) per liter. Some investors have started to buy the devalued stock in the hope that they will rise again.

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