Pakistan has informed the International Monetary Fund (IMF) about the economic damage caused by recent floods. The government revealed that the floods resulted in a loss of 371 billion rupees ($1.2 billion). The infrastructure and agriculture sectors bore the brunt of the damage. The floods claimed the lives of 1,006 people, injured 1,063, and damaged 12,569 homes.
The government had set a GDP growth target of 4.2% for the fiscal year 2025-26, but this is now projected to decrease to 3.9% due to the impact of the floods. Finance ministry officials told the IMF that Pakistan requires $26 billion in external funding, with $12 billion needed immediately.
The floods caused extensive damage to Pakistan’s infrastructure, including 2,133 kilometers of roads, 248 bridges, and 866 water structures. In addition, 1,098 schools, 128 healthcare centers, and 3.026 million acres of agricultural land were affected. Livestock, businesses, and public buildings also suffered significant losses.
Looking at 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 saw the most damage to homes, with 5,086 houses destroyed. Roads and bridges were also damaged in various provinces.
The agriculture sector suffered a loss of 155 billion rupees. Crops like cotton, wheat, sugarcane, and maize were affected. 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 of the agricultural sector could fall to 4%.
The industrial sector’s growth rate is projected to decrease from 4.3% to 4.2%, and 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 may also decline from 4% to 3.7%.
To secure funding, Pakistan informed the IMF that it plans to launch a Panda bond in the Chinese market in November, targeting $250 to $300 million. A Eurobond is planned for April 2026. To increase foreign exchange reserves, Pakistan purchased over $500 million from the interbank market in June 2025, bringing its total reserves to $7.7 billion.