Heavy monsoon rains cause at least 150 deaths in Pakistan


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Monsoon rains over the past month have killed at least 150 people as downpours continue to lash Pakistan, triggering flash floods in some parts of the country, government officials said on Monday.

The National Disaster Management Authority said 91 women and children were among the dead so far. The monsoon rains have also damaged homes, roads, five bridges and power stations across the country.

At least 163 people had also been injured in rain-related incidents since June 14, it said in a statement. Heavy rains and flash floods fully or partially damaged more than 1,000 houses across the country.

The situation was particularly dire in the southern city of Karachi, the country’s largest, where entire neighbourhoods remained submerged on Monday. Commuters were left stranded or attempting to wade through knee-deep water on foot or on bicycles. Some residents arranged for boats to move them to safer places.

“At the moment, the situation is like this that we need to travel by boat rather than in vehicles as the roads are flooded,” said one resident, Abdul Raheem.

Other residents of the port city said they were forced to abandon their cars on submerged roads and walk through waist-high water. Authorities summoned paramilitary troops and the navy to help with efforts to drain the waters from flooded streets and rescue people.

The rains are said to be almost twice as heavy as the average downpour at this time of the year. They started in mid-June, initially causing havoc in south-western Balochistan province, where 65 people have lost their lives so far.

In Sindh province, where Karachi is the capital, the disaster agency said at least 26 had died. Heavy rain has also struck Islamabad and eastern Punjab province, killing at least 23 since last month.

Authorities are delivering tents, food and other essential items to hundreds of rain-affected people in the north and south-west.

Experts say climate change is the cause for the heavier than average downpour in Pakistan.

Every year, many cities in Pakistan struggle with the annual monsoon deluge, drawing criticism about poor government planning. The season runs from July through September and bring rains that are essential for irrigating crops, replenishing dams and other water reservoirs in Pakistan. Parts of southern Pakistan have faced drought earlier this year.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Tips for SMEs to cope
  • Adapt your business model. Make changes that are future-proof to the new normal
  • Make sure you have an online presence
  • Open communication with suppliers, especially if they are international. Look for local suppliers to avoid delivery delays
  • Open communication with customers to see how they are coping and be flexible about extending terms, etc
    Courtesy: Craig Moore, founder and CEO of Beehive, which provides term finance and working capital finance to SMEs. Only SMEs that have been trading for two years are eligible for funding from Beehive.
Updated: July 11, 2022, 5:48 PM