Record Monsoon Floods Devastate Pakistan Farmlands, Industrial Centers, Threaten Economic Recovery

Pakistan is facing unprecedented floods caused by record monsoon rains and dam releases from India, severely impacting both its agricultural heartland and industrial centers. These floods have submerged large parts of Punjab and Sindh, the country's key economic and farming provinces, destroying up to 50% of rice and 60% of cotton and maize crops, with some districts experiencing over 90% loss in vegetables. The damage threatens food security, with wheat sowing—the staple food crop—also at risk, and has caused billions of dollars in losses, potentially exceeding one trillion rupees. The floods have also struck industrial hubs like Sialkot, which are vital for Pakistan's exports, particularly textiles, further jeopardizing economic recovery. Pakistan's government had anticipated 4.2% growth in 2026 under a $7 billion IMF program, but the floods are expected to reduce GDP growth and worsen inflation and the current account deficit. Officials and analysts warn the economic impact could surpass the devastating 2022 floods, with broad repercussions on food supplies, exports, and the fragile economy.