ECONOMIC SURVEY 2025-26: 2025 floods hit agriculture hardest with Rs430bn losses

LAHORE: The devastating floods of 2025 caused losses amounting to Rs822bn, claimed 1,039 lives, and displaced more than four million people, according to the Economic Survey 2025-26 released on Thursday. The unprecedented disaster dealt a severe blow to the economy, forcing policymakers to revise the country’s real GDP growth target downward from the originally projected 4.2 per cent to a range of 3.5 to 3.9 per cent. Describing the calamity as a “major downside driver to Pakistan’s economic growth,” the survey highlighted the enormous human and economic costs of the historic monsoon season. The floods were triggered by highly unusual rainfall between July and September 2025. National average rainfall reached 172.8mm, 23pc higher than the normal level of 140.9mm. The disaster caused Rs822bn losses across the country, displaced 4m people The crisis reached its peak in late August when accelerated glacier melt, combined with heavy monsoon rains, led to the rare simultaneous flooding of the Sutlej, Ravi and Chenab rivers. The resulting compound floods wreaked havoc across Punjab, which suffered the greatest impact. Punjab alone incurred losses of Rs631bn– more than 76pc of the nationwide damages – and accounted for 77pc of all deaths and displacements caused by the disaster. According to the survey, infrastructure losses across the country totaled Rs307bn. Damages included Rs187bn to road networks, Rs91bn in housing losses, and more than Rs28bn in losses to bridges, water infrastructure and energy systems. In all, 229,763 houses were either severely damaged or completely destroyed. The disaster also sent shock waves through the labour market, with more than 200,000 people losing their jobs, leading to a corresponding increase in unemployment. Agriculture emerged as the worst-affected sector, suffering losses estimated at Rs430bn. Crop damages alone amounted to Rs422bn, with cotton and rice among the hardest-hit crops. Despite the massive destruction, the Economic Surve