Times of Islamabad

7.5 billion annual loss to Pakistan economy revealed by SBP

7.5 billion annual loss to Pakistan economy revealed by SBP

ISLAMABAD: Lack of food security and malnutrition in the country has strongeconomic implications as malnutrition among children of under 5, costsaround US$ 7.5 billion or three percent of GDP every year, a report ofState Bank of Pakistan (SBP) said.

The high child mortality rates, prevalence of zinc and iodine deficiencies,stunting, and anemia, lead to deficits in physical and mental developmentthat weakens labor productivity and loss of future labor force in thecountry.

According to the report, US $2.24 billion is estimated as the loss offuture labor force resulting from under-5 mortality, US $ 1 billion is theestimated healthcare expense, which the families incur to address diarrheaand respiratory infection among children, US $ 3.7 billion is the estimatedcost of low labor productivity emanating from stunting, anemia or iodinedeficiencies in childhood, and US $ 657 million is the estimated cost ofprevalence of chronic weakness and fatigue among 10 million working adultswith anemia experience.

The report said ensuring food security within the country may entail largefiscal costs as governments incentivized farm sector to ensure foodself-sufficiency, and also resort to social safety net programs (includingdirect transfers) to keep purchasing powers of poor population intact.

However, it warned that in case the food self-sufficiency is not achieved,the country has to bear balance of payments cost to ensure foodavailability.

Pakistan is presently self-sufficient in major staples – ranked at 8th inproducing wheat, 10th in rice, 5th in sugarcane, and 4th in milkproduction, despite that, only 63.1 percent of the country’s households are“food secure”, the report quoted.

The survey incorporates the Food Insecurity Experience Scale developed bythe Food and Agriculture Organization (FAO) of the United Nations. Thescale bifurcates insecurity along the following dimensions: mild (worryingabout the ability to obtain food); moderate (compromising variety/quantityof food and often skipping meals); and severe (experiencing hunger on achronic basis).

Alarmingly, 36.9 percent of the households in Pakistan labelled as “foodinsecure”, 18.3 percent face “severe” food insecurity.

Across the provinces, KP and Gilgit Baltistan are relatively more foodsecure than Sindh and Balochistan.

With per capita income of US $1,497, Pakistan is still struggling withissues such as under-nourishment, micronutrient (iron, calcium, vitamin-Aetc.) deficiencies, and a deficit of safe drinkable water. Per capitaconsumption of food products that possess high-nutritional value like beef,chicken, fish, milk, vegetables and fruits is almost 6-10 times lower thanthat of developed countries.

Almost half of the children under five years are stunted(low-weight-for-age) and one in 10 has been suffering from wasting(low-weight-for-height) in the country. Incorporating these factors,Pakistan was ranked 106th among 119 countries surveyed for the GlobalHunger Index, and has been characterized as facing a “serious” level ofhunger.

Pakistan is among those seven countries that cumulatively account fortwo-thirds of the world’s under-nourished population (along withBangladesh, China, Congo, Ethiopia, India and Indonesia).