Pakistan agriculture may need 2 years for flood recovery

Pakistan's agriculture industry — a pillar of the economy — could take up to two years to start recovering from devastating summer floods, the Asian Development Bank (ADB) said on Monday.
The ADB and the World Bank are assessing the damage caused by one of Pakistan's worst natural disasters, which destroyed 1.3 mln hectares of crops just before the harvest of key products such as rice, maize and sugarcane.
"Once the country gets back on its feet, it will be able to meet part of those agricultural import needs that will happen over the next two years," Philip Erquiaga, director general of ADB's private sector operations, told Reuters.
"We are thinking within that time horizon we should be able to see the agriculture sector coming back," he told Reuters.
Agriculture is Pakistan's second largest sector, accounting for over 21% of gross domestic product. Nearly 62% of the population depends on agriculture for their livelihoods.
The ADB said earlier it could provide Pakistan with around $1.5-$2 bln of trade finance to help with recovery and reconstruction after the floods, some $500 mln more than it earmarked originally.
In 2009, ADB's Trade Finance Programme exposure of $249 mln to Pakistan banks supported $983 mln in trade.
Washington wants economic and political stability in Pakistan, which it sees as a vital ally in its war on militancy.