The Pakistani government has updated the International Monetary Fund (IMF) regarding the economic devastation caused by recent floods. The government has disclosed that the floods resulted in a loss of 371 billion rupees, equivalent to roughly $1.2 billion. The infrastructure and agricultural sectors experienced the most significant damage. The floods also tragically resulted in 1,006 fatalities, 1,063 injuries, and damage to 12,569 homes.
The government had previously set a target of 4.2% GDP growth for the fiscal year 2025-26. However, in light of the impact of the floods, this projection has been revised downwards to 3.9%. Finance ministry officials communicated to the IMF that Pakistan requires $26 billion in external financing, with an urgent need for $12 billion.
The floods have caused widespread damage across Pakistan, including 2,133 kilometers of damaged roads, 248 destroyed bridges, and 866 compromised water infrastructure projects. Additionally, 1,098 schools, 128 health facilities, and 3.026 million acres of farmland were affected. Livestock, commercial enterprises, and public buildings also suffered substantial losses.
Analyzing the regional impact, Khyber Pakhtunkhwa recorded the highest number of deaths (504), followed by Punjab (304), Sindh (80), Great Britain (41), Jammu and Kashmir (38), Balochistan (30), and Islamabad (9). Balochistan experienced the most extensive damage to homes, with 5,086 houses damaged or destroyed. Various provinces also reported significant damage to roads and bridges.
The agricultural sector sustained a loss of 155 billion rupees. Crops, including cotton, wheat, sugarcane, and maize, were significantly impacted. Cotton production is expected to decline by 1.5 to 2 million bales, and wheat production may decrease by 0.7 to 1.3 million tons. The growth rate within the agricultural sector could be reduced to 4%.
The industrial sector’s growth rate is anticipated to decrease from 4.3% to 4.2%, while the electricity, gas, and water supply sector’s growth is likely to fall from 3.5% to 2.9%. The service sector’s growth is also expected to decrease, from 4% to 3.7%.
To secure the necessary funding, Pakistan has informed the IMF of its plan to launch a Panda bond in the Chinese market in November, targeting $250 to $300 million. A Eurobond is also slated for April 2026. Furthermore, to bolster its foreign exchange reserves, Pakistan acquired over $500 million from the interbank market in June 2025, bringing its total reserves to $7.7 billion.