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Pakistan’s economy has suffered an estimated loss of $2.9 billion (Rs. 822 billion) due to the devastating 2025 floods, according to Federal Minister for Planning and Development Ahsan Iqbal. The disaster heavily impacted the agriculture and infrastructure sectors, damaging over 229,000 homes, most of them in Punjab.
Speaking at the launch of the government’s Monthly Development Update and Flood Damage Assessment Report, Iqbal said the findings have been presented to the Prime Minister. He noted that inflation has eased from 9.2% to 4.2%, while tax revenues increased by 12.5% year-on-year to Rs. 2,884 billion during the first fiscal quarter.
Iqbal stated, “Pakistan will rely on domestic resources for flood recovery rather than waiting for foreign aid,” recalling that after the 2022 floods, the country received only $600 million in external assistance compared to $30 billion in damages.
He also announced that 2026 will be declared the “Year of Reforms and Modernization of the Economy”, focusing on governance reforms, education, health, and skill development. The government will also establish a National University of Public Administration and launch the “Uraan Pakistan” program, aiming for a $1 trillion economy by 2035.
The final flood damage report is expected in the coming weeks, while provincial governments, including Punjab, are preparing relief packages for affected families.
