LAHORE - The business community has said that floods and heavy rains have badly affected the factories and residential areas in different districts including Sheikhupura, Kala Shah Kaku and Muridke, therefore mark-up due against all such units should be frozen for at least two quarters.

Top businessman including Shafqat Saeed Piracha said government in general, State Bank of Pakistan in particular should freeze the markup for 2 quarters on the financial facilities extended to flood affected factories. This act of State Bank of Pakistan can help the affected industries to bring their factory machinery/facilities in to production again.

The full economic costs of the devastation caused by the floods will not be known for some time. But they are likely to be substantial, both for the people affected by the deluge and for Pakistan’s cash-starved government.

According to rough estimates millions of acres of crops were destroyed in Punjab. Many more crops were destroyed in North West and Sindh. The flooding has caused massive damage to crops and also to the reserves that people had in their houses. Sugarcane, rice and cotton crops have been badly damaged. Experts are saying that farm production in Pakistan, Asia’s third-largest grower of wheat and the fourth biggest producer of cotton, may decline by 20 to 30% because of this damage. The losses to agriculture and livestock would have a spillover effect on industry and commercial activities to a great extent.