IMF report warns that Pakistan’s economic growth could, therefore, face a significant cut in 2025 due to devastating floods. With agriculture, infrastructure, and livelihoods heavily impacted, experts warn that Pakistan’s fragile economy faces new risks. The IMF report highlights the growing threat of climate change and emphasizes urgent action to mitigate economic and social losses.
Climate Change and Its Impact on Pakistan’s Economy
Pakistan is among the top 10 countries most vulnerable to climate change. In 2022, historic floods submerged one-third of the country, and similar patterns are being observed in 2025.
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- The latest floods have destroyed large areas of farmland, disrupted supply chains, and displaced thousands of families.
The economic cost of climate disasters is rising every year, putting immense pressure on Pakistan’s financial resources.
IMF Report on Floods and Economic Growth
According to the International Monetary Fund (IMF), Pakistan’s GDP growth rate could decline sharply if the agricultural sector continues to suffer.
- “Floods have severely damaged three of Pakistan’s largest crops—cotton, rice, and wheat.”
- Infrastructure damage is expected to cost billions of rupees, slowing down trade and logistics.
- Energy shortages caused by flood damage may further hurt industries.
The IMF report stresses that without long-term climate adaptation strategies, Pakistan’s economy will face recurring setbacks.
Agriculture Losses: The Biggest Challenge
Agriculture contributes nearly 20% to Pakistan’s GDP and employs over 35% of its workforce. Floods in 2025 have severely damaged:
- Cotton fields in Punjab
- Rice and wheat crops in Sindh
- Fruit orchards in Balochistan
These losses threaten not just farmers but also the textile industry, which relies heavily on cotton. Consequently, both domestic supply and export earnings may decline.
Government Response and International Aid
The government of Pakistan, along with global partners, has launched flood relief efforts. However, experts believe more is needed:
- Investment in flood-resilient infrastructure
- Climate-smart agriculture practices
- Regional cooperation for water management
International organizations, including the IMF and World Bank, are urging Pakistan to implement climate adaptation policies to safeguard its economy.
Conclusion – Building a Climate-Resilient Economy
The warning is clear: Floods threaten Pakistan’s economic growth in 2025. With agriculture losses mounting and infrastructure under strain, Pakistan must prioritize climate change adaptation to protect its people and economy.
The IMF report serves as a reminder that Pakistan’s future growth depends not just on financial policies but also on its ability to confront the challenges of climate change head-on. If you read more about “Free Trade Agreement (FTA) with Saudi Arabia” then click it.
