The Small and Medium Enterprises Development Authority (SMEDA) has unveiled its preliminary assessment report on the impact of recent floods on SMEs. Mr. Hashim Raza, CEO of SMEDA, while addressing the launching ceremony of the Report today, disclosed that 197,658 economic establishments had been affected by Floods across the country, bearing an estimated loss of US$ 5.3 Billion. Presidents of the Chambers of Commerce and Industry from Quetta, Dadu, DG Khan and Swat also addressed the launching ceremony via the internet.

CEO SMEDA said that the 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, have 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.” Of the 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, Mr. Hashim Raza informed 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 limitations due to accessibility to flood-affected areas and the unavailability of updated district-level data on economic establishments.

Highlighting the study’s results, CEO SMEDA informed that according to the findings, 25% of the economic establishments had been destroyed in the floods. In contrast, the rest of the SMEs had suffered from over Rs.1.4 billion in damage in total because of disruption in the supply chain, loss of customers, electricity disruption, roads, bridges and other transport network disruptions. Over 20% of the surveyed SMEs have an estimated Annual sales Turnover loss of Rs.1.3 billion.

For the revival, 86% of Surveyed SMEs have demanded the Subsidized Provision of Specific Products, Inputs or Services and 57% of Surveyed SMEs Demanded Access to new loans. In Sindh, businesses have demanded access to new loans at low-interest rates to resume operations and subsidized provision of specific products, inputs or services. In Punjab, Small and Medium-sized businesses affected by the flood need assistance with utility bill payments and reduced financing costs to restart business; SMEs in Balochistan demanded access to new loans and rental support. At the same time, the surveyed SMEs in KP have called for support from the government in the form of new loans, cash transfers and subsidized provision of products, inputs or services.