Gen Pervez Musharraf, Pakistan's military ruler, yesterday made a passionate plea for relief assistance as the scale of damage from Saturday's earthquake raised questions over its effect on the country's economy.
The prime minister, Shaukat Aziz, chaired an emergency cabinet meeting in Islamabad that approved a relief package of 5 billion rupees (€69 million) for the victims following an initial 1 billion rupees announced within hours of the quake.
Western diplomats warned the scale of the damage could rise well beyond Pakistan's budgetary capacity.
In carefully prepared remarks on state television, Gen Musharraf urged Pakistanis and the country's foreign donors to help immediately in key areas such as provision of tents, blankets and medicines and helicopters for evacuation purposes. "Together we will overcome this tragedy in this difficult hour for Pakistan," he said.
Independent analysts said the fallout from the earthquake, concentrated around northern Pakistan and in Pakistani-controlled Kashmir, was not likely to affect the country's industrial or commercial infrastructure.
However, there were anxieties over mounting pressures in other key economic areas, such as the need for a sharp rise in government spending to rebuild hospitals, schools and roads, as well as the impact of refugees moving from areas of devastation to other parts of the country.
Economists said much would depend on the extent to which Pakistan's western allies responded with emergency relief and reconstruction assistance. The response from the large community of Kashmiris around the world - with many in high-income groups - was also thought to be a key factor in dealing with the economic gaps.
"In our culture, people come together in such difficult times. If the Kashmiris in Britain or the United States or elsewhere successfully put together big donations, the fallout could be managed reasonably quickly," said Shahid Kardar, another respected economist. He said that, depending on the outcome of appeals from the government, there was a remote possibility that the Pakistani economy could receive an unexpected shot in the arm if construction activities were to take place at a fast pace in the coming months.
But other analysts warned of the bleak scenario that could be created by a large number of poor refugees leaving Kashmir and other devastated parts of Pakistan for bigger cities in search of low-income jobs. This could increase pressure on urban infrastructure, raise the crime rate and aggravate fears of an economic slowdown due to high global oil prices.
Almost a third of Pakistan's population of about 150 million is believed to live below the poverty line - it ranks 135th in the United Nations' human development list of 177 countries.
"If we had done something for the local economies of these areas when the people who are now dead were still alive, maybe some would have afforded more durable houses and survived this catastrophe," said Zubair Khan, a respected economist and former commerce minister. "At least we can now start taking care of those who live behind to mourn the loss." - (Financial Times service)