Following a severe heat wave, the people of Pakistan faced torrential rains and massive flooding from June to August 2022 across 81 districts, affecting 33 million people across the nation. The effects of the disaster on people’s livelihoods are immense – ASA Pakistan’s clients being no exception.

Proactive support for Pakistan

Impact in figures

The impact of the flooding that occurred in Pakistan is almost beyond comprehension. Over 1300 lives were lost, with an additional 12,700 people injured. Livelihoods have been affected by the destruction of over one million houses, the perishing of more than 700 thousand livestock and the devastation of two million acres of crops. The flooding affected approximately 85,000(15%) of ASA Pakistan’s clients, 16% of its branch network, and 12% of its Gross Loan Portfolio as of the end of August, underscoring the scale of the disaster and the challenges faced by the Company as it works to support its clients in these difficult times.

Supporting clients

In preparation for natural calamities, the Company takes proactive steps to ensure the safety and well-being of its clients. Group meetings are held to brief clients on how to respond and the measures they should take in such situations. Additionally, the Company strongly emphasises keeping close contact with clients during and after such disasters. In the aftermath of the flood, teams checked in with clients at their homes, via mobile or community leaders, and conducted group meetings, where possible, to provide moral support. To further assist those affected, the company relaxed its loan collection policies and continued to disburse loans to provide working capital to clients who needed it. ASA Pakistan also made a significant contribution of PKR 2 million to the Government fund set up for relief efforts. Going forward, the company plans to provide loans to clients for livestock and farming, recognising that those clients working in agriculture in rural areas have been hit particularly hard by the flood.

"The ability to apply for another loan after reopening my business and not being obligated to repay my loans during times of extreme hardship was fundamental for my survival.

Shoukat Ali, Client of ASA Pakistan

Effect on clients

The floods had devastating effects on the Company’s clients, with many suffering damages or complete collapse of their homes, loss of assets, and even the loss of loved ones. Those whose homes were flooded, temporarily migrated to relief camps set up by the government. After the water receded, they gradually returned home to rebuild their houses and revive their businesses, and although most clients have
managed to resume their businesses, the losses they incurred were significant, and most have not yet fully recovered. Whilst most clients picked up the same business after the flooding, others have changed their business activities to meet market demand. The road to recovery has been long and arduous for many, but the resilience and determination of clients to rebuild their lives and livelihoods is inspirational.