The 2025 monsoon floods have dealt a severe blow to Pakistan’s economy, with initial estimates suggesting an economic toll reaching USD 1.4 billion.
According to a recent report by Arif Habib Limited dated September 7, 2025, the floods, still unfolding, have already caused widespread devastation, testing the nation’s resilience. The economic impact is equivalent to approximately 0.24% of Pakistan’s GDP, with losses exceeding PKR 400 billion (USD 1.4bn), driven by damage to housing, transportation, agriculture, and livelihoods.
The report highlights that the floods have destroyed or damaged over 897,014 houses and injured 12,867 people, with significant livestock losses adding to the crisis. Economic sectors are reeling, with agriculture facing a PKR 302.376 billion (USD 1.032 billion) hit, accounting for 0.24% of GDP.
Transportation and communication networks have suffered PKR 87.654 billion (USD 331 million) in damages, while the broader economic strain includes disrupted trade and increased relief efforts, pushing the total loss to 0.3% of GDP.
READ MORE: Foreign Investors Repatriate $244m as Confidence in Pakistan Economy Grows
The devastation underscores the urgent need for robust recovery measures, as the floods have not only wiped out homes but also threatened food security and rural livelihoods. With the full scale of the impact yet to be determined, the economic recovery will hinge on coordinated efforts to rebuild infrastructure and support affected communities.
