ISLAMABAD: Floods have devastated Pakistan’s agriculture, wiping out millions of acres of farmland in eastern Punjab province and threatening southern Sindh, causing losses of more than $1 billion and prompting urgent calls for an agricultural emergency.
The Provincial Disaster Management Authority (PDMA) reported that 1.8 million acres of crops in Punjab were submerged, while farmer organizations estimate the figure closer to 2.5 million acres, mostly in central and southern districts.
PDMA also stated that 4.28 million people have been affected by the floods, with 2.26 million evacuated from submerged areas.
A preliminary assessment by the Pakistan Business Forum estimates that 60% of the rice crop, 35% of cotton, and 30% of sugarcane have been wiped out.
In a letter to Prime Minister Shehbaz Sharif, the forum warned that Sindh province may soon face similar devastation if preventive measures are not implemented.
Farmers’ groups report even greater financial damage. Akhtar Farooq Meo of the Kissan Board Pakistan cited losses amounting to Rs536 billion ($1.89 billion), pointing to the destruction of cotton, rice, sesame, maize, and fodder crops.
Khalid Hussain Bath, president of Kissan Ittehad Pakistan, said nearly 2.5 million acres of cultivated land have been wiped out, raising concerns about food shortages in the flood-affected regions.
Independent assessments emphasize the scale of the crisis. Brokerage firm Arif Habib Limited (AHL) projected the total cost of the 2025 floods at Rs409 billion ($1.4 billion), equal to 0.33% of Pakistan’s GDP. Agriculture accounts for the bulk of losses, exceeding Rs302 billion ($1.0 billion), or 0.24% of GDP, nearly three-fourths of the overall impact.
After a 6.2% growth in fiscal year 2022, Pakistan’s GDP contracted by 0.2% in 2023 before rebounding to 2.5% in 2024.
Pre-flood projections for fiscal year 2026 growth stood at 3.4%, but analysts have revised this down to 3.2%, as agriculture’s contribution is expected to fall sharply from 2.2% to 1.1%.
The agricultural sector, which comprises nearly a quarter of GDP and employs 40% of the workforce, was already struggling. Agriculture grew just 0.56% in 2024, the weakest in almost a decade and far below the five-year average of 3.38%. Analysts warn the floods could further drag down growth, compounding economic pressures.
However, officials cautioned against premature conclusions. An official from the National Disaster Management Authority (NDMA) told Pakistan TV that the agency has not yet been tasked with assessing the full extent of losses and “no such survey has been carried out so far.” PDMA Director Hameed Ullah Malik also said it was “too early to endorse any assessment” since large parts of southern Punjab remain underwater.
Meanwhile, Punjab Chief Minister Maryam Nawaz announced a flood relief package, pledging Rs1 million ($3,521) for the heirs of those killed and Rs1 million for homeowners who lost property. Partially damaged homes will receive Rs500,000 ($1,760). Livestock owners will also be compensated, Rs500,000 for large animals and Rs50,000 ($176) for small animals.
At the federal level, the cabinet chaired by Prime Minister Shehbaz Sharif declared a climate and agriculture emergency and formed a special committee under Planning Minister Ahsan Iqbal to propose economic recovery measures.