The Pak Banker

Twin crises' impact

-

An Asian Developmen­t Bank (ADB) report says Pakistan's economy has escaped to a great extent the compoundin­g impact of the Covid-19 crisis and the locust swarms. The two crises have hurt millions of the country and disrupted the economy, as per the new ADB report about the impact of the Covid-19 pandemic and the locust swarms on farm households in Sindh.

Livelihood­s and food security were significan­tly affected by the virus outbreak and the hoppers. Half of over 400 farmers interviewe­d for the survey reported lower food consumptio­n and a third complained of reductions in their earnings because of the nationwide lockdown enforced to curb the spread of infection.

Likewise, the swarms have affected almost all respondent­s from upper Sindh and over a third from lower Sindh. The farmers also reported an almost universal lack of response from the government as a "source of informatio­n about the locust swarms or relief in the form of surveys and spraying".

The lender had conducted the survey back in June when infections were peaking, and developing locust invasions were threatenin­g to devastate the crops and orchards in most parts of the country.

Three months later, the situation does not seem as dire as at the time of the survey. Although the two scourges have left deep scars on the economy and the people, a substantia­l number of households in the urban and rural areas appear to be on the road to recovery. Overall, the economy is on the mend as reflected in the published data for the first quarter of the ongoing fiscal year. But is there any room for complacenc­y? The answer to the question is in the negative. The virus outbreak and the locust attack have clearly shown us that we are not ready to combat such emergencie­s. Indeed, the government took some timely policy and other measures to mitigate the effects of Covid-19 and the locusts; but these actions were temporary and, in some cases, may have only delayed the inevitable. We still don't have the required infrastruc­ture to handle any recurrence. For example, we do not have a single functional crop duster to protect our farmers from another locust invasion. Nor do we have facilities to treat Covid19 infections outside a few major cities.

Therefore, as the ADB report points out, the government needs to take action to both mitigate the damage already caused and to invest in long-term means to confront such emergencie­s.

Newspapers in English

Newspapers from Pakistan