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Climate change means poverty for many. Is Pakistan ready to address the challenge?

Climate change means poverty for many. Is Pakistan ready to address the challenge?

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Climate change means poverty for many. Is Pakistan ready to address the challenge?

Climate change is real and already here for long enough to push countries like Pakistan towards water scarcity – an unwanted distinction that is even more alarming in our case because of the population size and density as well as lack of human resource development and a society that hasn’t yet been fully industrialised.

So rising unemployment and poverty shouldn’t be a surprise, as Pakistan is already witnessing a cost-of-living crisis amid record-high inflation and interest rates – a combination not only sustaining but also further fuelling the existing economic crisis.

With glaciers melting at the fastest rate ever recorded, Pakistan, like other many other countries, is experiencing extreme weather events, including rising temperatures amid a rain pattern that is getting more and more erratic with each passing rainy season.

The state of affairs is complicating by the fact that the climate change or global warming is a global issue and Pakistan doesn’t have the resources or the policies required to launch initiatives that can tackle the challenge at various levels and in different sectors.

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As agriculture is no more profitable for many households due to a shrinking land holding size and urbanisation of farmland at a time when mechanisation has been making it less labour intensive, people are moving to the cities in search of livelihood, further straining the fragile infrastructure these urban centres have.

Unfortunately, there is no comprehensive plan or policy in Pakistan to address the economic, social and political problems triggered by climate change.

Here is a latest example from Iraq as AFP covered the effects being felt in Iraq

IRAQIS DISPLACED BY CLIMATE CHANGE FALL INTO POVERTY

For the past decade, Nasser Jabbar and his children have lived in a rundown house built of grey concrete blocks at a shantytown in southern Iraq.

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Drought chased the father of 10 out of the countryside, where he had been a herder and farmer, and into a life of unemployment and urban poverty.

“We lost the land and we lost the water,” said the father in his 40s, wearing a traditional white robe.

He spoke to AFP in his home on the edges of Nasiriyah, capital of Dhi Qar province.

Jabbar’s neighbourhood typifies the extreme poverty that those displaced by climate change face in south and central Iraq.

With declining rainfall, the country has seen four consecutive years of drought.

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In the shantytown where he lives, cracked streets lined with rubble and piles of rubbish snake between houses thrown together by their inhabitants.

On an empty lot surrounded by ramshackle buildings, sewers empty onto open ground as cows rest in the shadow of a low wall nearby.

Like Jabbar, many of the displaced who live here abandoned their villages after a life working in agriculture.

In the old days in Gateia, Jabbar’s village in Dhi Qar, he farmed five hectares (just over 12 acres) of land with his brothers.
In winter, they harvested barley; in summer, vegetables.

Before leaving his fields behind for the last time, Jabbar did what he could for four years to combat the onward march of an increasingly inhospitable climate.

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$4 A DAY INCOME

He dug a well, but “little by little the water dropped”, and he had to sell off his herd of 50 goats one by one.
Once in the city, he found work on construction sites carrying bricks or mixing concrete, but had to stop in the end because of back problems.

“I haven’t worked for three years,” he said.

Now two of his children, aged 17 and 18, support the family by carrying goods to market, earning a little less than four dollars a day.

Despite Iraq being an oil-rich country, poverty is common.

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In addition to drought, the authorities blame upstream dams built by Iraq’s powerful neighbours Iran and Turkey for dramatically lowering water levels in the Tigris and Euphrates rivers which have irrigated Iraq for millennia.

By mid-September, “21,798 families (130,788 individuals) remain displaced because of drought conditions across 12 governorates” in central and southern Iraq, an International Organization for Migration report said.

According to the IOM, 74 percent of climate refugees resettle in urban areas.

Dhi Qar’s deputy governor in charge of planning, Ghassan al-Khafaji, noted “significant internal migration” in the province, sparked by water shortages.

In five years “3,200 housing units were built on the outskirts of the city” of Nasiriyah, as a result of an exodus from Iraq’s famed southern marshes which have been assailed by drought.

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Those houses account for “between 20,000 and 25,000 people”, Khafaji added.

RISK OF UNREST

“This internal migration has put extra pressure on employment, with our young people already suffering from significant unemployment.”

Iraq has been wracked by decades of conflict, and corruption has eroded public administration. Urban centres are no better off than the countryside.

Cities are “already confined in their ability to provide basic services to existing residents due to limited, ageing and underfunded infrastructure”, Thomas Wilson, a climate and water specialist at the Norwegian Refugee Council, told AFP.

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“Trends in rural to urban movement put an additional burden on failing infrastructure,” he said.

He recommended “resource management plans, effective governance, and investment” in favour of the regions the displaced come from, in the framework of a “policy to reduce and mitigate forced migration”.

In a country of 43 million people, nearly one Iraqi in five lives in an area suffering from water shortages.

In April, a UN-issued report noted the risk of “social unrest” because of climate factors.

“Limited economic opportunities for young people in crowded urban areas further risk reinforcing feelings of marginalisation, exclusion, and injustice,” the report said.

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“This could fuel tensions between different ethno-religious groups or increase grievances vis-a-vis state institutions,” it added.

Qassem Jabbar, Nasser’s 47-year-old brother, joined him in Nasiriyah three years ago.

“Since we left, I haven’t been working”, said Qassem, his waist strapped in a brace after he had a back operation he could only pay for with the help of donors.

Of his own 10 children, only two go to school. How could he possibly cover school fees for them all?

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A sigh of relief as inflation at lowest ebb of 17.3pc in two years

A sigh of relief as inflation at lowest ebb of 17.3pc in two years

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A sigh of relief as inflation at lowest ebb of 17.3pc in two years

Pakistan’s consumer price inflation has come down to 17.3 per cent in April, the lowest during the preceding two years, data from the Pakistan Bureau of Statistics (PBS) says. 

Pakistan has been beset by inflation above 20pc since May 2022, registering as high as 38pc in May 2023, as it has gone through reforms as part of an International Monetary Fund (IMF) bailout programme. 

Month-on-month inflation is down 0.4pc, showing negative growth for the first time since June 2023. 

The Finance Ministry in its monthly economic report said it expected inflation to hover between 18.5pc and 19.5pc in April and ease further in May to 17.5pc-18.5pc. 

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“The inflation trajectory is slowing primarily on account of food inflation which has slowed down considerably,” said Faizan Kamran, chief executive of a Karachi-based investment and research company.

Kamran added that he expected inflation to fall into single digits in the next five to six months. 

The State Bank of Pakistan (SBP) maintained its key interest rate unchanged at 22pc for the seventh straight policy meeting on Monday, hours before the donor agency executive board approved $1.1 billion in funding under a $3 billion standby arrangement signed last year. 

Pakistan receives last tranche from IMF 

The State Bank of Pakistan (SBP) received SDR 828 million (around $1.1 billion) from the International Monetary Fund (IMF) on Tuesday – a day after the Fund approved the last tranche for Pakistan under the $3 billion Stand-By Arrangement (SBA). 

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In a statement, the SBP said the amount would reflect in the foreign exchange reserves for the week ending on May 3. 

Last week, the SBP said its foreign exchange reserves dropped by $74 million to $7.981 billion (in the week ending on April 19) because of external debt repayments.

IMF greenlights $1.1bn tranche 

On Monday, the IMF approved disbursement of $1.1 billion tranche, concluding the second bailout package in eight years. The board met in Washington and completed the second review. It is learnt that all board members, except India, favoured the last installment for Pakistan.

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Czech central bank cuts a key interest rate again with inflation down and the economy on the mend

Czech central bank cuts a key interest rate again with inflation down and the economy on the mend

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Czech central bank cuts a key interest rate again with inflation down and the economy on the mend

The Czech Republic’s central bank on Thursday cut its key interest rate for the fourth straight time as inflation dropped and the economy showed signs of recovery.

The cut by a half-percentage point brought the interest rate down to 5.25%. The move was expected by analysts.

The bank started to trim borrowing costs by a quarter-point on Dec. 21, which marked the first cut since June 22, 2022. It continued with a cut by a half-percentage point on Feb. 8 and went on by another half-percentage cut on March 20.

Inflation declined to 10.7% in 2023 from 15.1% in 2022, according to the Czech Statistics Office, and dropped to 2.0% year-on-year in February, which equals the bank’s target, and remained unchanged at the same level in March.

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The Czech economy was up by 0.4% year-on-year in the first quarter of 2024, and increased by 0.5% compared with the last three months of the previous year, the preliminary figures released by Statistics Office indicated on Tuesday.

That came after the Czech economy contracted by 0.2% in the last three months of 2023 compared with a year earlier.

The Czech bank’s decision comes as central banks around the world, including the U.S. Federal Reserve, are trying to judge whether toxic inflation has been tamed to the point that they can start cutting rates.

The European Central Bank left its key rate benchmarks unchanged at a record high of 4% in April, but signaled it could cut interest rates at its next meeting in June.

But the U.S. Federal Reserve emphasized earlier this week that inflation has remained stubbornly high in recent months and said it doesn’t plan to cut interest rates until it has “greater confidence” that price increases are slowing sustainably to its 2% target. 

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Neelum Jhelum Power Plant shutdown for physical inspection of head race tunnel

Neelum Jhelum Power Plant shutdown for physical inspection of head race tunnel

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Neelum Jhelum Power Plant shutdown for physical inspection of head race tunnel

The Neelum Jhelum Hydropower Plant was shut shutdown yesterday for a physical inspection of its head race tunnel to locate the problem which led to a decrease in pressure a month ago.

Once the problem is traced, a comprehensive plan will be chalked out in coordination with the project consultants and the international experts for undertaking remedial works to rectify the issue, said a press release.

According to the details, a sudden change in the head race tunnel pressure was observed on April 2, 2024. As per the advice of the Project Consultants for the safety of the head race tunnel, the project management kept operating the plant at a restricted generation of 530 MW since April 6 to monitor fluctuation in the head race tunnel pressure.

Neelum Jhelum Hydropower Plant continued generating about 530 MW of electricity till April 29 without any issue. However, at 2257 hours on April 29, further change in the head race tunnel pressure was observed. Subsequently, the generation was gradually reduced but the pressure could not sustain within the safe limits as per the advice of the Project Consultants.

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Keeping in view the safety of the head race tunnel and the powerhouse, the plant was shut down at 0600 hours on May 1 for a physical inspection of the head race tunnel to identify the problem of reduced pressure. Consequent to the detailed discussion with the consultants for dewatering of the 48 Km-long tunnel, the intake gates at the dam site were lowered for flushing of the de-sanders.

The dewatering started from the powerhouse side on the same day. The dewatering will be executed at intervals for the safety of the tunnel.

It is important to note that Neelum Jhelum Hydropower Project has been constructed in a weak geological and seismic-prone area. It has a 51.5 Km-long tunnel system. Its head race tunnel is 48 Km long, while the tail race tunnel is 3.5 Km-long. About 90% of the project is underground. Earlier, the plant was shut down in 2022 for repair of the tail race tunnel downstream of the powerhouse. After completion of the repair and rehabilitation work, the plant resumed electricity generation in August 2023.

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