The Ministry of Finance has shared an initial flood damage assessment report with the International Monetary Fund (IMF), revealing that recent floods have caused a staggering Rs744 billion loss to the national economy.
The floods have devastated lives and livelihoods across 70 districts, marking one of the worst natural calamities in recent years.
According to the report, 1,037 people have died and 1,067 others have been injured due to the floods. Over 6.5 million people have been directly affected, while four million have been shifted to safer locations to avoid further harm.
Punjab hit hardest
Punjab has suffered the most significant economic damage, with losses estimated at Rs632 billion. Khyber Pakhtunkhwa follows with Rs51 billion, Sindh with Rs32 billion, and Balochistan with Rs7 billion in losses.
In terms of human casualties, Khyber Pakhtunkhwa reported the highest death toll at 509, followed by Punjab with 322, Sindh with 90, Balochistan and Azad Kashmir with 38 each, Gilgit-Baltistan with 31, and Islamabad with nine deaths.
Agriculture sector suffers most
The report highlights that the agriculture sector bore the brunt of the disaster, with damages estimated at Rs439 billion. The industrial sector faced losses of Rs48 billion, while the services sector suffered Rs257 billion in damages.
Additionally, the real estate sector lost Rs55 billion, and the commercial sector faced Rs40 billion in damages. The floods have severely disrupted Pakistan’s rural economy, particularly in regions reliant on farming and livestock.
Sharp decline in crop and livestock production
Agricultural production growth is now expected to remain at 3%, down from the targeted 4.5%. Cotton production has dropped 33%, falling to just 7.2 million bales. The report also warns of significant declines in rice, maize, and sugarcane production, further straining the country’s food supply.
The floods have also killed 5,467 livestock, exacerbating losses for rural communities already struggling with crop destruction.
Infrastructure and public facilities severely damaged
The disaster has inflicted serious damage on infrastructure nationwide. According to the report, 2,811 kilometers of roads, 790 bridges, and 866 water structures have been destroyed. Additionally, 229,763 houses have been affected, leaving thousands homeless.
The education and health sectors have also suffered heavily, with 2,267 educational institutions, 243 health centers, and 129 government buildings destroyed.
Economic growth target revised
The Ministry of Finance stated that due to the flood damage, Pakistan’s economic growth rate is likely to remain at 3.5%, below the 4.2% target set for the current fiscal year. The ministry emphasized that the floods have significantly disrupted agricultural and industrial output, posing a major challenge to economic recovery efforts.
Government Coordination with IMF
The initial report shared with the IMF outlines the country’s preliminary damage assessment and seeks support for rehabilitation and reconstruction efforts. Officials stressed that the government is prioritizing the restoration of key infrastructure and livelihoods in the worst-affected areas.
