Islamabad: The federal government has released a fresh report on the financial impact of the recent floods, revealing that the floods that occurred between June and September 2025 dealt one of the biggest shocks to the country’s economy in history.
The report states that the total financial loss during this period exceeded Rs 822 billion, while the disaster has significantly slowed the pace of the country’s development. According to experts, GDP growth may decrease by 0.3 to 0.7 percent in the fiscal year 2026, resulting in a potential drop in the growth outlook from 4.2 percent to 3.5 percent.
According to official data, the floods also added to inflationary pressures, with inflation rising by 2.6 percent between August and October. The report said that the agricultural sector suffered the most losses, estimated at Rs430 billion.
Similarly, the damage to the country’s infrastructure was estimated at Rs307 billion, while the economy suffered another Rs187.8 billion due to disruptions to transport and communication networks.
According to government analysis, agricultural production is expected to decline sharply, which could limit the sector’s growth to 3 percent from 4.5 percent. The decline in production could force an increase in imports in the future, which would further widen the trade deficit.
The report said that the floods not only reduced national output but also affected supply chains, which could result in further inflation in the coming months.
