The World Bank has reduced Pakistan’s GDP growth forecast for the fiscal year 2025 to 2026 because of the serious impact of recent floods across the country. The new projection places growth at around 2.6 percent compared to the earlier estimate of 3.1 percent. This drop shows how deeply the floods have affected the economy particularly the agriculture and infrastructure sectors.
The heavy monsoon rains have damaged crops roads and housing in several regions including Punjab Sindh and Khyber Pakhtunkhwa. Agricultural output has been hit the hardest as major crops like wheat rice sugarcane and cotton have suffered heavy losses. With farmlands submerged and transport routes blocked rural incomes and food supplies have gone down sharply.
The World Bank said that Pakistan will continue to face challenges such as high inflation weak exports and slow recovery in the short term. The economy is expected to stabilize gradually if flood recovery programs are carried out properly and if infrastructure is rebuilt on time. Growth may rise to around 3.4 percent in the next fiscal year if these efforts succeed.
Pakistan GDP Forecast Cut
The main point of this report is that the World Bank has cut Pakistan’s GDP growth forecast by 0.5 percentage points due to the economic losses caused by floods. The decline highlights how vulnerable Pakistan’s economy is to natural disasters and climate change. Since agriculture provides a large part of employment and exports any damage to crops directly affects growth and national income.
This lower forecast also creates pressure on Pakistan’s financial management. Slower growth means fewer tax revenues and less money for development spending. At the same time the government must increase funds for flood recovery social programs and infrastructure rebuilding. Balancing these needs while keeping financial stability will be a major challenge.
The World Bank believes that with better planning investment in climate protection and support for farmers Pakistan can recover in the coming years. Stronger disaster management systems and improved water control will help protect the economy from future shocks and keep growth steady.
