The economic costs of the recent floods in Pakistan are expected to be 25% of the country’s GDP, according to the latest Export Finance and Insurance Corporation (EFIC) World Risk Developments report.

The Federal Government agency, which provides finance and insurance to Australian exporters, says the floods have cost Pakistan between $US10 billion ($10.4 billion) and $US43 billion ($44.8 billion).

Agriculture accounts for 20% of the Pakistani economy and provides a living to 45% of the population.

The damage caused to infrastructure by the floods will put a strain on Pakistan’s “perilous finances”, the report says.

But it believes the international community will not let the country’s financial problems get out of hand because of its role in providing stability to the region.

EFIC also reported that Vietnam has introduced price controls on a range of basic goods such as cement, steel, fertilisers, powdered milk, sugar, rice and coal.

It says the controls are designed to stem rising costs, but could backfire if they create shortages.

“They will underline foreign and local investment confidence already dented by repeated currency devaluations, the government’s persistently high fiscal deficits and reports and sizable losses in may of Vietnam’s state-owned firms,” the report says.