Pakistan suffers from flood losses RS371BN, GDP target is reduced to 3.9%, the IMF said

• The government had raised a 4.2% GDP increase for the financial year 2025-26.
• Islamabad informs the IMF about external funding needs of $ 26 billion.
• There is no plan to impose flood taxation, the finance minister says.
  

Pakistan has informed the International Monetary Fund (IMF) of financial losses amounting to 371 billion Rs after recent floods, which have suffered severe damaged infrastructure and agriculture.

The government had set a real GDP growth target of 4.2% for continuing economic use (FY26), approved by the National Economic Council (NEC) and Parliament at the time of the budget, The news reported on Wednesday.

However, in the light of flood -related damage, authorities have promoted a downward revision of the target by 0.3 percentage points, bringing it to 3.9%.

The Ministry of Finance has informed the IMF review of $ 26 billion funding for external funding needs, of which $ 12 billion will be transferred, stating that the example of China’s ambassador was committed to the last time. of the specified timetable.

The IMF has also been informed that Islamabad will reappear on the international counterpart display of the international bond market during the current year. It may prefer to start Eurobond in the last quarter (April-June) 2026 with two pre-existing conditions, including further reduction of the Fed Reserve in the US.

Secondly, Pakistan’s risk premium recedes by improving yet another notch by international evaluation organizations.

Regarding macroeconomic modeling and flood damage, Pakistani high impacts informed the mission of reciprocal revision, recent floods caused 1,006 deaths, 1,063 injuries and 12,569 damage to the home. Floods also caused damage to 2,133 kilometers of roads, 248 bridges and water infrastructure 866 across the country.

Floods destroyed the infrastructure as 1,098 educational institutions, affected 128 health facilities and 3.26 million acres of crops. Floods also caused damage to 100 public sector buildings, 8 mines, 1,291 commercial areas/shops and 10,991 animals across the country. Dissolving the damage done to the provinces shows from 1,006 deaths, 504 appeared in KPK, 304 in Punjab, 80 in Sindh, 41 on GB, 38 in AJK, 30 in Balochistan and 9 in Islamabad Capital (ICT).

District household compensation showed that Balochistan saw the worst disaster as 5,086 houses suffered damage, followed by KPK with 3,222, AJK 2,017, GB 1260, Punjab 238, Sindh 281 and ICT 65.

For the road infrastructure, the floods caused 1,216 kilometers in Punjab, 437 kilometers in KP, 201km in AJK, 99 kilometers in the Bacillus, 20 km in GB, 7 kilometers in Sindh and 0.03 kilometers in ICT.

The floods destroyed 94 bridges at AJK, 87 in GB, 52 in KP and 3 in Balochistan and ICT. No data on the damage to the Punjab and Sindh bridge damage. For the animal sector, 5,467 animals in KP, 380 in the Ballet, 239 in AJK, 235 in Sindh, 121 in Punjab and 67 in GB.

Losses of producing important crops show that cotton production is estimated to have a loss of 1.5 to 2 million balls. Prior to the floods, cotton production was estimated at 10.2 million balls, but now production can amount to 8.7 million balls FY26.

Production is estimated at 9.5 million tonnes. But after the floods, its production is estimated to face losses of 0.7 million to 1.3 million tonnes and can stand at 8.2 to 8.8 million tonnes.

Sugar production will also be destroyed from 2.3 to 4.3 million tonnes, as it could reduce from 80 million tonnes to 76 or 78 million tonnes. Crab production will also be damaged from 0.5 to 1.3 million tonnes.

Overall, the growth of the agricultural sector, which is projected to 4.5% for current use, can be reduced to 4% after recent floods. The Georgian sector faced damage of $ 155 billion.

For major crops, growth is expected to decline from 6.7% to 4.5%. Important crop losses are estimated at 87 billion Rs.

The increase in the industrial sector is estimated to have a decrease of 4.3% to 4.2% for current use. Electricity, natural gas and water supply that are faced with losses, so its growth is estimated to be reduced from 3.5 to 2.9% for FY26.

The development of the services, which is projected at 4PC, is now estimated to be 3.7 % after floods.

The flood has affected electricity, gas and water supply by 0.6pc, with large crops of 2.2%, 0.4%housing, infrastructure by 1.74%, agriculture growth by 0.5%, industry by 0.1%and services by 0.3%for FY26.

Total accumulated losses are estimated at RS371 billion in Pakistan’s economy after recent floods.

Regarding the issue of the launch of Eurobonds, the Treasury informed the IMF that the Panda bond will be released in November with a target of $ 250 to $ 300 million in the Chinese market, followed by a second tranche in April 2026.

Eurobond will be examined in the last quarter of FY26. It has not yet been decided on the exact size of the upcoming Eurobond. Pakistan had to repay $ 1.5 billion due to Eurobond’s maturity. The first $ 500 million was paid on September 30, 2025 and then $ 1 billion by April 2026.

On the outside front, the IMF said the SBP bought over $ 500 million in June 2025 from the interbank market. Total market markets ranged about $ 7.7 billion in an effort to create foreign stocks.