The total quantified hidden costs of the agri-food system for Pakistan amount to approximately $161.8 billion, constituting around 15 percent of the country’s GDP, according to an analysis by Food and Agriculture Organization of the United Nations (FAO). These costs are categorized into environmental ($28.9 billion), social ($20.9 billion), and health ($112 billion) dimensions. The hidden cost is any cost to individuals or society that is not reflected in the market price of a product or service. It refers to external costs (that is, a negative externality) or economic losses triggered by other market, institutional or policy failures.
In its analysis, the FAO unveils the staggering hidden costs of current global agrifood systems, reaching an alarming $10 trillion annually, nearly 10 percent of the world’s GDP. This revelation comes from a comprehensive study covering 154 countries, shedding light on the multifaceted impact of hidden costs on health, the environment, and society. The 2023 edition of the State of Food and Agriculture (SOFA) reveals that over 70 percent of these hidden costs stem from unhealthy diets prevalent in highand upper-middle- income countries, contributing to obesity, non-communicable diseases (NCDs), and substantial labor productivity losses. A significant portion, one-fifth of the total costs, is environment-related, attributed to factors like greenhouse gas and nitrogen emissions, land-use change, and water use, posing a global challenge with underestimated scales due to data limitations. Low-income countries bear a disproportionate burden, with hidden costs exceeding a quarter of their GDP, highlighting the severe impact on poverty and undernourishment. According to the report, lower-middle-income countries show the highest variation in the distribution of quantified hidden costs. In Pakistan, hidden costs from unhealthy dietary patterns causing obesity and non-communicable diseases (NCDs) dominate, as more commonly seen in high-income countries. Pakistan also faces major challenges associated with poverty and undernourishment. https://shorturl.at/ckRX9
Source: IBP