Pakistan has formally informed the International Monetary Fund (IMF) of amazing rupees. The recent floods have caused 371 billion economic losses, which have defeated the country’s infrastructure and agricultural sectors and forced the country’s growth goals to revise.
According to official sources, the Finance Ministry wrote a letter to the visiting IMF review mission on a scale of disaster, saying that the government’s original GDP growth target for the current fiscal year approved by the National Economic Council and Parliament is a target of 4.2 percent, which will be reduced by 3.9 percent for the financial year 2025-26. This review reflects a reduction of 0.3 % point, which is directly attributed to the widespread destruction of the flood.
Flood Effects: Human and Economic Tool
Floods, which affected 52 districts and estimated an estimated two and a half million people, have left the path of destruction across the country. Official data shows the loss of 1,006 deaths, 1,063 injuries and 12,569 homes. Infrastructure disadvantages are wide: 2.133 km or roads, 248 bridges, and 866 water supply systems are damaged nationwide. Education and health sectors have also faced 1,098 schools and 128 health facilities, along with an area of 3.26 million acres of crops.
According to the province, Balochistan caused domestic catastrophe, damaged 5.086 houses, followed by Khyber Pakhtunkhwa (3.222), Azad Jammu and Kashmir (2.017), Gilgit -Baltistan (1,260), Punjab (238), Sanda (238), Punjab (238), Punjab (238), 65). There were bad, which also caused significant damage in KP, AJK and other regions.
The cattle sector lost about 11,000 animals, while commercial areas, public buildings and mines also suffered heavy damage.
Agriculture and Industry: Blow and revised estimates
The agriculture sector, which is an important place in Pakistan’s economy, has been particularly severely damaged. The losses in the major crops are estimated at Rs 87 billion, of which the total agricultural losses are Rs 155 billion. It is expected that cotton production, initially 10.2 million bales has been predicted, now it is expected that between 8 to 8.7 million bales will fall. Wheat and sugarcane results are also predicted, loss of wheat production is estimated at 1.3 million tonnes and sugarcane production will decrease by 4.3 million tonnes.
As a result, the current fiscal year is expected to increase the agriculture sector, which is less than 4.5 % of the previous target. The increase in major crops is expected to decrease from 6.7 % to 4.5 %. The forecast of industrial sector growth has increased from 4.3 % to 4.2 %, while the electricity, gas and water supply sector is now expected to increase only 2.9 %, which is less than 3.5 %. Estimates of growth in the services sector have also been edited down, which is from 4 % to 3.7 %.
External financing and bond market projects
During a conversation with the IMF, the Finance Ministry signed Pakistan’s external financing requirements for the current financial year for $ 26 billion, which will be expected to end $ 12 billion. Officials cited the Chinese ambassador’s previous promises to ensure the timely role over and re -financing of Pakistan’s Obesis.
Pakistan also informed the IMF about its intention to re-establish the international bond market, which plans to start a Panda Bond in China in November, targeting $ 250-300 million, followed by a second train in April 2026. US Federal Reserve Policy Rates further reduces and improves Pakistan’s international credit rating. In September 2025, the country has already paid $ 500 million in maturity, with another $ 1 billion due to April 2026.
On the external front, the State Bank of Pakistan purchased more than 500 million millions from the Interbank Market in June 2025, with a total purchase for reserve blood up to $ 7.7 billion.
Federal Finance and Revenue Minister Mohammad Aurangzeb expressed satisfaction over the ongoing engagement with the IMF, emphasizing that the government was actively reviewing the flood losses and would submit a comprehensive report for the octoprio and adjustment to the fund.