The federal government has released a comprehensive report on the financial losses related to the devastating floods that occurred across the country this year, according to which rains and flood waves during June to September 2025 have dealt a deep blow to the economy.
According to the official document, the floods caused a total loss of more than Rs 822 billion in these four months, while economists have warned that this disaster will have a direct impact on the GDP growth of the fiscal year 2026. The report states that the country’s growth rate is likely to decline by 0.3 to 0.7 percent, which could reduce the growth outlook from 4.2 percent to 3.5 percent.
The document states that the floods also accelerated inflation in the country. From August to October, the inflation rate was recorded at 2.6 percent, while the agricultural sector was hit the hardest, where losses are estimated at Rs 430 billion.
The report further reveals that the floods caused damage to infrastructure worth Rs 307 billion, while the destruction of the communication system caused a further shock of Rs 187.8 billion to the economy.
According to the government document, the sector’s growth rate is likely to fall from 4.5% to 3% due to disruption in agricultural activities. The decline in crop production could increase imports in the future, which could further widen the trade deficit.
The report warns that inflation is likely to increase further due to the decline in gross domestic product, supply chain disruptions and market disruptions, which could pose new economic challenges for ordinary citizens.
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