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pakistan-floodHYDERABAD: Pakistan's cash-strapped government, still struggling to help victims of last year's floods, could face another major test as monsoon rains sweep across Sindh province in the south.

"The situation in Sindh is already serious and there will be more flooding and more problems because of these rains," said meteorology department official Arif Mehmood.

"We have alerted all relevant government agencies dealing with the flood situation."

Flooding has killed about 200 people, destroyed or damaged nearly one million houses and flooded 4.2 million acres of land since late August, according to the United Nations Office for the Coordination of Humanitarian Affairs (OCHA).

More than a year later, over 800,000 families remain without permanent shelter, according to aid group Oxfam, and more than a million people need food assistance, mostly in Sindh.

Pakistan may also have lost up to two million cotton bales, or about 13 percent of its estimated crop, due to heavy monsoon rains during harvesting in major producing region Sindh, government and industry officials said.

Monsoon rains sweep the subcontinent from June to September and are crucial for agriculture in the region.

The South Asian nation, which relies heavily on foreign aid and an IMF emergency loan package, cannot afford heavy losses in the agriculture sector, a pillar of the economy.

Last year, the cotton output fell to 11.70 million bales against a target of 14 million bales due to 2010's floods.

The losses in the cotton crop were among the reasons Pakistan's economic growth that year slipped to 2.4 percent from the original target of 4.5 percent.

Prime Minister Yousuf Raza Gilani has already appealed for international help to cope with the latest floods.

Copyright Reuters, 2011

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