2025 Pakistan Floods Cause $1.4 Billion Loss | Agriculture & Economy Hit Hard

2025 Pakistan Floods Inflict $1.4 Billion Loss on Economy

The devastating floods of 2025 have caused huge damage to Pakistan’s economy. According to a report by Arif Habib Ltd, the total loss is estimated at Rs. 409 billion ($1.4 billion), which is around 0.33% of the GDP.

🌾 Agriculture Hit the Hardest

Agriculture sector faced the biggest loss, making up nearly three-fourths of the total damage. Crops like sugarcane, rice, and cotton have been badly destroyed.

Punjab alone saw 1.3 million acres of farmland under water.

Sindh reported huge destruction, including 80% cotton loss in Bahawalnagar.

This will reduce Pakistan’s agriculture growth from 2.2% to 1.1% in FY26, and overall GDP growth will also slow down.

🛣️ Roads, Bridges & Transport Losses

Floods damaged the transport and communication sector with a loss of Rs. 97.6 billion ($333 million). Broken roads and bridges disrupted relief work and made it difficult to move goods across Pakistan.

Housing damages worth Rs. 8.95 billion ($31 million) displaced thousands of families.

🐄 Livestock Impact

Over 6,000 animals died, causing Rs. 0.5 billion ($2 million) losses. For rural families, this is a major blow, since livestock is a source of food and income.

💰 Trade Deficit Expected to Rise

The floods will also widen Pakistan’s trade deficit by $1.9 billion in FY26.

Cotton shortage may force imports worth $1.06 billion.

Exports of textiles, rice, and sugar could fall by $861 million.

This dual effect of higher imports + lower exports will put pressure on Pakistan’s economy.

📈 Inflation & Food Prices Rising

Due to crop damage, food inflation is expected to rise sharply. Prices of wheat, tomatoes, onions, and vegetables are already increasing. Experts predict that CPI may reach 7.2% in FY26, compared to the earlier estimate of 5.5%.

🏗️ Cost of Reconstruction

Rebuilding infrastructure will cost around Rs. 107 billion ($364 million), mostly for roads and bridges. On top of that, the government will need extra funds for agriculture support and social relief.

🌍 Need for Climate Resilience

The floods highlight how urgently Pakistan needs climate resilience and disaster preparedness. Experts believe the actual cost will rise further as assessments continue.

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