Pakistan Prime Minister Yousuf Raza Gilani warned Wednesday that the country faced inflation of up to 20 percent and slower growth because of devastating floods that wiped out crops. “The inflation target of 9.5 percent for the financial year 2011 will be missed and it is likely to be in the range of 15-20 percent,” Gilani said in televised remarks to his cabinet. “Inflation is likely to spike significantly in the face of short supply of food due to crops destruction.” He said that GDP would also lower to 2.5 percent from the predicted 4.5 percent. “The economy grew by 4.1 percent during the last year and was expected to grow by 4.5 percent during the current fiscal year,” he said. “The damage caused by the floods will bring down real GDP growth to 2.5 percent for the fiscal year 2011.” He told his cabinet that the country, which already has a shaky economy, now faced a serious economic crisis. “This economic loss will translate into massive job losses and loss of incomes for thousands of families. Consequently, it may have serious social implications,” he said. Torrential monsoon rains have triggered massive floods that have moved steadily from north to south over the past month, engulfing a fifth of the volatile country and affecting 17 million of Pakistan's 167 million people. Hungry flood victims protest lack of help Hundreds of hungry families blocked a highway in Pakistan's flood-hit south on Wednesday, demanding the government provide more food as the UN warned of a “triple threat” to desperate survivors. Up to 500 people from a government-run relief camp in Thatta city, in the worst-affected province of Sindh, blocked the main road between Karachi city and Thatta for three hours calling for the state to provide food and shelter. “No food or water has been provided to us for the past two days,” said Mohammad Qasim, a 60-year-old resident of the flooded town of Sujawal. The World Food Programme issued a stark warning of the threat to food supplies after a month of catastrophic flooding that has affected 18 million people, as the deluge flows south on its way to the Arabian Sea.
