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Pakistan Floods Deepen Food and Export Strains as Fields and Factories Go Under

An IMF review this week will test whether current budget provisions cover mounting relief needs.

Overview

  • At least 1,006 people have died since June 26 and more than 2.5 million have been evacuated in Punjab and Sindh, according to the NDMA.
  • Satellite monitoring shows at least 220,000 hectares of rice flooded between August 1 and September 16, while Punjab reports 1.8 million acres of farmland inundated.
  • The Pakistan Farmers Association estimates damage to about half of rice and 60% of cotton and maize, with potential losses reaching up to one trillion rupees.
  • Flooding hit industrial hubs such as Sialkot, marooning workshops as cotton shortfalls threaten the textile sector and rice exporters warn of lost price competitiveness.
  • The central bank warns of a temporary yet significant supply shock with growth near the lower end of its 3.25–4.25% range, as officials prepare a clearer damage estimate in about two weeks and food prices surge.