$1.4B Loss: Floods Leave Pakistan Counting the Cost

The 2025 monsoon floods have caused an estimated Rs. 409 billion ($1.4 billion) in losses, wiping out 0.33% of GDP, according to Arif Habib Ltd.

Agriculture has been hit hardest, losing over Rs. 302 billion ($1 billion) as sugarcane, rice, and cotton fields were submerged—Punjab alone saw 1.3 million acres of farmland inundated. Sindh reported catastrophic damage, with nearly 80% of Bahawalnagar’s cotton crop destroyed.

Infrastructure losses reached Rs. 97.6 billion ($333 million) as roads and bridges collapsed, stalling relief and trade, while housing damages of Rs. 8.95 billion displaced thousands. Over 6,000 livestock deaths further deepened rural distress.

The fallout will likely widen Pakistan’s trade deficit by $1.9 billion in FY26, as cotton imports surge and textile, rice, and sugar exports decline. Agriculture growth is now projected to fall from 2.2% to just 1.1%, dragging overall GDP growth down.