ISLAMABAD (Dunya News) - Pakistan suffered economic losses of Rs822 billion due to the devastating floods of 2025, which claimed 1,039 lives and displaced more than four million people, according to the Economic Survey 2025-26.
The survey described the disaster as a major setback to the country's economy, forcing the government to revise its real GDP growth target downward from 4.2 percent to a range of 3.5 to 3.9 percent.
The floods, triggered by unusually heavy monsoon rains between July and September 2025, caused widespread destruction across the country. During the period, average rainfall reached 172.8 millimetres, 23 percent higher than the normal level of 140.9 millimetres.
Punjab Worst-Hit Province
The crisis intensified in late August when rapid glacier melt combined with torrential monsoon rains led to simultaneous flooding in the Sutlej, Ravi and Chenab rivers. The resulting flood surge caused extensive devastation across Punjab.
According to the survey, Punjab alone accounted for Rs631 billion in losses — more than 76 percent of the nationwide damage. The province also recorded 77 percent of all flood-related deaths and displacement cases.
Infrastructure losses were estimated at Rs307 billion, including Rs187 billion in damage to road networks. The housing sector suffered losses of Rs91 billion, while bridges, water infrastructure and energy systems sustained damage exceeding Rs28 billion.
Overall, 229,763 houses were either severely damaged or completely destroyed.
Agriculture Suffers Massive Blow
The floods also disrupted livelihoods, leaving more than 200,000 people unemployed and contributing to a rise in joblessness.
Agriculture emerged as the hardest-hit sector, suffering losses of Rs430 billion. Crop damage alone amounted to Rs422 billion, with cotton and rice among the most severely affected crops.
Unexpected Recovery
Despite the extensive damage, the agricultural sector showed remarkable resilience, recording growth of 2.89 percent in fiscal year 2026. Supported by timely government assistance and recovery measures, the crop sector posted growth of 1.44 percent after contracting by 1.01 percent in the previous fiscal year.
The survey cited figures from the international disaster database EM-DAT, which estimated total losses at around $3 billion, reported 1,037 deaths and said approximately 6.9 million people were affected by the floods.
Following the disaster, government agencies and humanitarian organizations launched extensive relief operations. The Pakistan Poverty Alleviation Fund distributed Rs2.747 billion in assistance, benefiting more than 136,700 vulnerable families.
The government has since shifted its focus toward climate resilience and disaster preparedness, including the restoration of flood protection embankments, construction of small dams and stricter enforcement of regulations governing development in flood-prone areas.
According to the survey, these measures are aimed at reducing the risks and impact of future flooding events.