Pakistan has provided details of the economic losses resulting from recent flooding to the International Monetary Fund (IMF). According to the government, the floods caused 371 billion rupees in damages, equivalent to approximately $1.2 billion. The infrastructure and agricultural sectors were the hardest hit by the disaster. The floods also led to the tragic loss of 1,006 lives, injuries to 1,063 individuals, and damage to 12,569 homes.
The government had initially targeted a 4.2% GDP growth rate for the 2025-26 fiscal year. However, due to the impact of the floods, this projection has been adjusted to 3.9%. Officials from the finance ministry have communicated to the IMF that Pakistan requires $26 billion in external financial assistance, with an immediate need for $12 billion.
The floods caused extensive destruction across Pakistan, damaging 2,133 kilometers of roads, 248 bridges, and 866 water-related infrastructure projects. Furthermore, 1,098 schools, 128 healthcare centers, and 3.026 million acres of agricultural land were impacted. Livestock, commercial ventures, and public structures also sustained significant losses.
Examining the regional impact, Khyber Pakhtunkhwa reported the highest death toll (504), followed by Punjab (304), Sindh (80), Great Britain (41), Jammu and Kashmir (38), Balochistan (30), and Islamabad (9). Balochistan experienced the greatest number of homes destroyed, with 5,086 residences damaged. Various provinces also reported damage to roads and bridges.
The agriculture sector suffered a loss of 155 billion rupees. Crops such as cotton, wheat, sugarcane, and maize were significantly impacted. Cotton production could decrease by 1.5 to 2 million bales, while wheat production may decline by 0.7 to 1.3 million tons. The growth rate in the agricultural sector could be reduced to 4%.
The industrial sector’s growth rate is projected to decrease from 4.3% to 4.2%, while the growth in the electricity, gas, and water supply sector is expected to drop from 3.5% to 2.9%. The service sector’s growth is also likely to decrease, from 4% to 3.7%.
To address funding needs, Pakistan informed the IMF about its plan to issue a Panda bond in the Chinese market in November, targeting $250 to $300 million. A Eurobond is also planned for April 2026. In an effort to bolster foreign exchange reserves, Pakistan purchased over $500 million from the interbank market in June 2025, increasing its total reserves to $7.7 billion.