By Staff Reporter
ISLAMABAD: The devastating floods of 2025 caused economic losses of Rs822 billion and claimed the lives of more than 1,000 people across Pakistan, according to the Economic Survey 2025-26.
The survey revealed that 1,039 people lost their lives, while over four million were displaced due to severe flooding triggered by unusually heavy monsoon rains between July and September 2025.
The disaster dealt a significant blow to the national economy, prompting the government to lower its GDP growth forecast from 4.2 percent to a range of 3.5 to 3.9 percent.
Average rainfall during the monsoon season reached 172.8 millimetres, around 23 percent higher than the normal level of 140.9 millimetres. The situation worsened in late August when rapid glacier melting combined with intense rainfall, causing major flooding in the Sutlej, Ravi, and Chenab rivers.
Punjab emerged as the worst-affected province, accounting for Rs631 billion in losses—more than three-quarters of the total national damage. The province also recorded 77 percent of all flood-related deaths and displacement cases.
Infrastructure suffered extensive destruction, with losses estimated at Rs307 billion. Road networks alone sustained damage worth Rs187 billion. The housing sector incurred losses of Rs91 billion, while bridges, water systems, and energy infrastructure also suffered significant damage. In total, nearly 230,000 homes were either destroyed or severely damaged.
The agriculture sector bore the heaviest economic impact, with losses reaching Rs430 billion. Crop damage accounted for Rs422 billion, particularly affecting cotton and rice production. The floods also disrupted livelihoods, leaving more than 200,000 people unemployed.
Despite the widespread devastation, the agricultural sector showed resilience and recorded growth of 2.89 percent in fiscal year 2025-26. Government support and recovery initiatives helped the crop sector return to growth after a contraction in the previous year.
The survey also cited data from the international disaster database EM-DAT, which estimated total losses at approximately $3 billion and reported that nearly 6.9 million people were affected by the floods.
In response to the disaster, relief operations were launched across the country. The Pakistan Poverty Alleviation Fund distributed Rs2.747 billion in assistance to more than 136,700 vulnerable families.
The government has since intensified efforts to strengthen climate resilience through the restoration of flood protection embankments, construction of small dams, and stricter regulations on development in flood-prone areas.
