2025 Floods Inflicted Rs822 Billion Losses, Revised Pakistan's GDP Growth Target

Pakistan's Economic Survey 2025-26, released on Thursday, detailed the extensive impact of the 2025 floods, which caused Rs822 billion in losses, led to 1,039 fatalities, and displaced more than four million individuals. The calamity was identified as a major factor in Pakistan's economic growth, necessitating a downward adjustment of the country’s real GDP growth target.

The floods, occurring between July and September 2025, were triggered by unusually high rainfall, with the national average reaching 172.8mm, which is 23% above the normal level. The crisis peaked in late August due to accelerated glacier melt combined with heavy monsoon rains, resulting in the simultaneous flooding of the Sutlej, Ravi, and Chenab rivers.

Punjab was disproportionately affected by the compound floods, incurring losses of Rs631 billion, which accounts for over 76% of nationwide damages. The province also reported 77% of all deaths and displacements caused by the disaster.

Infrastructure across the country sustained Rs307 billion in damages. This included Rs187 billion in losses to road networks, Rs91 billion in housing damages, and more than Rs28 billion impacting bridges, water infrastructure, and energy systems. A total of 229,763 houses were either severely damaged or completely destroyed. The disaster also impacted the labor market, with over 200,000 job losses contributing to increased unemployment.

Agriculture emerged as the hardest-hit sector, facing estimated losses of Rs430 billion, with crop damages alone reaching Rs422 billion. Cotton and rice were among the most severely affected crops. Despite this extensive destruction, the Economic Survey noted that the agricultural sector displayed resilience, achieving a growth rate of 2.89% in FY2026, attributed to timely government support measures. The crop sector rebounded to 1.44% growth, an improvement from the 1.01% contraction in the previous fiscal year, driven by better-than-anticipated Kharif crop performance.

The survey's estimates received international validation from EM-DAT—The International Disaster Database, which reported broadly similar figures in its December update, estimating total damages at around $3 billion, 1,037 fatalities, and approximately 6.9 million affected people.

In the aftermath, government institutions and humanitarian organizations launched extensive relief operations. The Pakistan Poverty Alleviation Fund (PPAF) disbursed Rs2.747 billion to support over 136,700 vulnerable households, established 124 medical camps treating 47,926 patients, and deployed 220 emergency response teams. As emergency operations conclude, the government is now focusing on long-term climate resilience and disaster preparedness through initiatives like rehabilitating protective embankments, constructing small dams, and enforcing stricter floodplain zoning regulations.

According to Dawn Pakistan, the report was published on June 12th, 2026.