Pakistan floods batter fields, factories and fiscal plans
The government was optimistic about 2026, after the economy was stabilized under the rescue of 7 billion dollars of international money funds, it was a pencil in a growth of 4.2% behind a recoil in farming and production.
Instead, since the end of June, the monsoon rains strengthened by dam broadcasts from India, sinking large areas of the Great Punjab and Sindh, the two most crowded and economically vital states.
Although the waters are not yet withdrawn in many regions, authorities and analysts warn that the hit may be deeper than 2022, when one -third of the country is in water due to bilateral shocks for agriculture and production.
In the plains, the scale of satellite images followed. A report of Geoglam, the Agricultural Monitoring attempt, estimates that the rice field of at least 220,000 hectares between August and 16 September is flooded.
According to the Provincial Disaster Management Agency Punjab, Pakistan’s rice, cotton and corn engine, 1.8 million acres of agricultural land remained under water. Pakistani Farmers Association President Khalid Bath, “Rice of about 50% and 60% of cotton and corn crops were damaged.” He said. He said that the damages could exceed 2.5 million periods worth a trillion rupee ($ 3.53 billion).
Iqrar Ahmad Khan, former vice president of Faisalabad, Faisalabad, said, “This is not like anything we have seen in the last decade.”
At least one tenth of the country’s plants have been destroyed and in some regions, vegetable losses are estimated to exceed 90%.
Timing Dangerous: Pakistan is about to bread, which is the crop, which provides almost half of the country’s calorie intake. According to the crop monitor, the national reserves remain comfortable after a strong 2024 harvest, but the sowing window is still at risk in slippery areas with mud and mud.
Khan, “Food insecurity is coming, not just higher prices.”
Risks
Planning Minister Ahsan Iqbal admitted that floods would “bring back the GDP” and said Tallly would be ready for a clearer damage in about two weeks.
The Central Bank of Pakistan said the flood would cause a “temporary but important supply shock” and its growth near the lower end of the 3.25-4.25% range.
He argued that the shock would be less severe than a disaster of $ 30 billion in 2022, and stronger Forex reserves and lower interest rates offer some flexibility.
However, wheat, sugar, onion and tomato jumped prices and pushed a sensitive price index to the highest level of 26 months.
IMF resident representative Mahir Binici said that an upcoming examination of the expanded fund facility this week would consider whether the 2026 financial year budget and emergency provisions can meet the needs of the country. IQbal called on the fund to “help us reduce damages”.
Some economists say policy makers weaken risks.
Former Finance Minister Hafeez Pasha, “Floods will increase the account deficit of 7 billion dollars. Worse than previous floods.” He said.
Counting losses
Several workshops were employed in industrial cities such as Sialkot, a center for textile, sports equipment and surgical equipment, which supports Pakistan’s exports.
A blow to agriculture is a blow for manufacturers. Industrialists, cotton deficiencies will fluctuate the country’s best foreign currency winner, while rice exporters will stimulate the risk of losing competitiveness to India as Pakistan prices rise.
Farmer Rab Nawaz, near the historic city of Multan, “We had 400 acres of cotton, but only 90 remained.” He said.
National Disaster Management Authority said that at least 1,006 people have died since June 26, and more than 2.5 million people have been released in Punjab and Sindh.
Houses and small businesses were encouraged in Lahore in the provincial capital.
Mohammad Arif, a 50 -year -old Czechian driver and five -year -old father, said he carried his car to a higher place as his house was underwater.
He said, “We’ve been on the road for three days.”
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