Here is a summary of the impact of flood on the Pakistan economy :

The 2022 floods in Pakistan were one of the worst natural disasters in the country's history, affecting
more than 33 million people across all provinces and regions. The floods were caused by heavy monsoon
rains, which triggered flash floods, riverine floods, and urban floods. The floods lasted for more than two
months, from July to September, and resulted in more than 1730 deaths and 3000 injuries. The floods
also displaced millions of people, who had to seek shelter in camps, schools, mosques, or with relatives
and friends .

The floods had a devastating impact on the physical, social, and economic assets of the affected
population. According to a joint Post-Disaster Needs Assessment (PDNA) conducted by the Ministry of
Planning, Development and Special Initiatives, the Asian Development Bank (ADB), the European Union
(EU), the United Nations agencies, and the World Bank, the total damages caused by the floods
amounted to USD 14.9 billion, equivalent to 5.8 percent of Pakistan's gross domestic product (GDP) in
FY22 . The total economic losses incurred by the floods reached USD 15.2 billion, equivalent to 5.9
percent of FY22 GDP . The estimated needs for rehabilitation and reconstruction in a resilient way were
at least USD 16.3 billion, equivalent to 6.3 percent of FY22 GDP .

The floods affected various sectors of the economy, with different degrees of severity and impact. The
most affected sector was housing, which accounted for 37 percent of the total damages and 17 percent
of the total losses . More than 2 million houses were partially or completely destroyed by the floods,
leaving millions of people homeless or living in inadequate conditions . The housing sector also faced
challenges in terms of land tenure, building standards, quality of materials, and availability of skilled
labor .

The second most affected sector was agriculture and livestock, which accounted for 25 percent of the
total damages and 36 percent of the total losses . The floods wiped out more than 8 million acres of
crops, including major staples such as wheat, rice, maize, cotton, and sugarcane . The floods also killed
or lost millions of animals, such as cows, buffaloes, sheep, goats, poultry, and fish . The agriculture and
livestock sector faced challenges in terms of restoring production capacity, ensuring food security and
nutrition, providing inputs and services, and enhancing resilience to climate change .

The third most affected sector was transport and communications, which accounted for 22 percent of
the total damages and 13 percent of the total losses . The floods severely damaged or disrupted roads,
bridges, railways, airports, power lines, and telecommunication networks across the country . The
transport and communications sector faced challenges in terms of restoring connectivity and mobility,
ensuring safety and quality standards, improving efficiency and sustainability, and reducing vulnerability
to future shocks .
Other sectors that were also affected by the floods included water supply and sanitation (6 percent of
total damages), health (3 percent), education (3 percent), industry and commerce (2 percent),
environment and natural resources (1 percent), governance (0.4 percent), and social protection (0.3
percent) . These sectors also faced various challenges in terms of restoring service delivery, ensuring
access and equity, improving governance and accountability, and strengthening social protection
systems .

The floods also had a negative impact on the macroeconomic performance and human development
indicators of Pakistan. The loss in GDP as a direct impact of the floods was projected to be around 2.2
percent of FY22 GDP . This implied a lower growth rate for FY22 compared to the pre-flood scenario. The
fiscal deficit was expected to widen due to lower tax revenues and higher expenditures on relief and
recovery^ [3]^ . The balance of payments was likely to deteriorate due to lower exports and higher
imports^ [3]^ . The inflation rate was forecasted to reach a record high of 30 percent by the end of FY22
due to rising food prices and supply shortages^ . The national poverty rate was estimated to increase by
3.7 to 4.0 percentage points as a result of the floods^ [3]^ , potentially pushing between 8.4 and 9.1
million more people below the poverty line. Multidimensional poverty was projected to increase by 5.9
percentage points, implying that an additional 1.9 million households were at risk of being pushed into
non-monetary poverty^ [3]^ .

The PDNA recommended a comprehensive recovery and reconstruction framework based on the
principles of the poor first, transparency, inclusion, and climate resilience. The framework aimed to
restore the pre-disaster conditions of the affected areas, as well as to improve their resilience to future
shocks. The framework also emphasized the need for new investments beyond the affected assets, to
support Pakistan’s adaptation to climate change and overall resilience of the country^ [2]^ . The PDNA
called for urgent support from the national and international community to implement the recovery and
reconstruction plan in a timely and effective manner.