2025 floods cause Rs822bln losses, affect millions across Pakistan: Economic Survey

ISLAMABAD, (APP - UrduPoint / Pakistan Point News - 11th Jun, 2026) The devastating floods of 2025 caused losses estimated at Rs822 billion (US$2.9 billion), affected approximately 6.5 million people and displaced more than four million individuals across 70 districts of the country, according to the Economic Survey 2025-26.

The survey stated that Pakistan remained highly vulnerable to climate-induced hazards due to its location within the Indus River Basin, the South Asian monsoon system and the cryospheric dynamics of the Hindu Kush-Himalayan region.

During the 2025 monsoon season, rainfall beginning in late June evolved into a large-scale compound disaster. Monsoon rainfall during July-September remained 23 percent above average, with all provinces and territories recording above-average or near-average rainfall.

The survey noted that enhanced glacier melt, elevated river discharges, inadequate drainage capacity and unsustainable land-use practices combined with heavy rainfall to trigger widespread flooding across Khyber Pakhtunkhwa, Gilgit-Baltistan, Azad Jammu and Kashmir and Punjab.

The situation worsened in late August when the Sutlej, Ravi and Chenab rivers experienced synchronized flood peaks, resulting in unprecedented compound flooding across Punjab.

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According to the survey, more than 1,039 people lost their lives, while extensive damage was caused to agriculture, housing, transport infrastructure and irrigation networks. Punjab accounted for Rs631 billion, or 76.8 percent, of the total losses.

The agriculture sector suffered damages of Rs430 billion, including crop losses of Rs422.6 billion, affecting major crops such as cotton and rice. Infrastructure-related damages were estimated at Rs307 billion, including Rs187.7 billion in road network losses and Rs91.2 billion in housing damages. More than 229,763 housing units were damaged during the disaster.

The survey warned that flood-related disruptions are expected to increase unemployment by approximately 0.2 million during FY2026 and pose a significant downside risk to economic growth, with real GDP growth revised downward to an estimated range of 3.5 to 3.9 percent against the initial target of 4.2 percent.

The survey also cited EM-DAT estimates showing that the floods affected about 6.9 million people, caused over 1,037 deaths and inflicted nearly US$3 billion in damages.