Floods could strain Pakistan’s economy and disrupt food supplies, warns finance ministry
Shehbaz, Erdogan discuss flood situation, Turkiye offers full support
Staff Report
NAROWAL: Prime Minister Shehbaz Sharif on Thursday underscored the urgent need to build more water storage infrastructure to minimise the devastating impact of flash floods and protect lives and livelihoods in the country.
Pakistan is battling torrential monsoon rains that have unleashed flash floods, swelled rivers, and filled dams, with more than 800 deaths reported since late June. Amid the heavy rains, India released excess water this week from its dams, swelling river flows downstream in Punjab.
The National Disaster Management Authority (NDMA) said that Pakistan evacuated more than 210,000 villagers near the rivers Ravi, Sutlej, and Chenab that flow from India.
Earlier in the day, Pakistani officials said India passed on its third flood warning since Sunday, this time for the Sutlej, while the previous two concerned waters heading into Pakistan on the Ravi.
Speaking at a high-level meeting to review the country’s flood situation on Thursday, the prime minister highlighted that increasing storage capacity was crucial and stressed to begin work immediately. “Storage capacity is the need of the hour, and without wasting any more time, we should start work in this regard,” he said.
PM Shehbaz, stressing the importance of generating resources to fund the construction of dams and water reservoirs nationwide, said, “We will have to generate the resources by ourselves”.
He also called for the speedy completion of ongoing projects including Diamir Bhasha Dam to safeguard against future disasters.
The prime minister noted that the floods initially struck the northern areas but were now wreaking havoc in Punjab’s plains. He offered prayers for those who lost their lives due to floods and torrential rains.
He praised the coordinated efforts of Punjab Chief Minister Maryam Nawaz, the NDMA, Pakistan Army, and other relevant civil departments for their dedicated work during rescue and relief operations.
“This sense of cooperation between the Punjab government and relevant departments has helped minimise losses,” he added.
Recalling floods in 2022, which primarily affected Sindh and Balochistan, PM Shehbaz warned that Pakistan remained one of the top ten countries most affected by climate change, making such disasters likely to recur in the coming years.
He urged all departments to enhance preparedness and adopt short-, medium-, and long-term strategies to confront future challenges through robust decision-making.
Earlier, Chairman NDMA Lt Gen Inam Haider presented a detailed briefing about the overall situation of the floods in Punjab.
Floods could strain Pakistan’s economy and disrupt food supplies, warns finance ministry
The finance ministry on Thursday warned that Pakistan’s economy faces risks from flood-related damages, which may add fiscal pressures and disrupt food supplies in affected areas.
The ministry, in its latest monthly economic outlook, said that Pakistan’s economy entered FY2026 with stable macroeconomic conditions and improved growth prospects, supported by a stronger external and fiscal position.
“On a YoY basis, LSM [large scale manufacturing] has been on a steady recovery since April 2025, peaking in June, and is expected to gain further momentum with improvements in automotive and fertiliser output,” read the report.
The ministry noted that government measures for investment facilitation, along with reforms to support private sector-led growth, easing inflation, and accommodative monetary policy, may further reinforce business confidence.
“A favourable global environment, stronger demand from trading partners, and the recent trade deal of Pakistan with the US are expected to boost exports, while workers’ remittances will help contain trade deficit pressures from tariff rationalisation–driven imports.
“However, flood-related damages may add fiscal pressures and disrupt food supplies in affected areas,” it said.
Pakistan is reeling under unprecedented floods aggravated by India’s deliberate suspension of the Indus Waters Treaty (IWT) and its manipulation of river outflows without sharing timely flood warnings.
Pakistan is already battling monsoon rains in recent weeks, with more than 167,000 people displaced in Punjab, including 40,000 who left voluntarily after flood warnings since August 14.
The official death toll from the country’s floods since the start of the monsoon season in late June stood at 804 on Wednesday, half of them in August.
Meanwhile, the finance ministry projected inflation to “remain within the range of 4-5% in August, 2025”.
Pakistan’s headline inflation clocked in at 4.1% on a year-on-year (YoY) basis in July 2025, a reading higher than that of June 2025, when it had stood at 3.2%, showed Pakistan Bureau of Statistics (PBS) data.
Shehbaz, Erdogan discuss flood situation, Turkiye offers full support
Prime Minister Muhammad Shehbaz Sharif on Thursday received a telephone call from President Recep Tayyip Erdogan of Turkiye, who expressed condolences and solidarity with Pakistan over the devastation caused by recent floods across various parts of the country.
President Erdogan conveyed his heartfelt sympathies on the loss of precious lives and property, assuring that Türkiye stood ready to extend all possible assistance, including support in rescue and relief operations.
Thanking the Turkish President for his thoughtful sentiments and generous offer of help, Prime Minister Shehbaz Sharif said the call reflected the strong and time-tested brotherly ties between Pakistan and Türkiye. He noted that both nations had always stood by each other during challenging times.
The two leaders also recalled their recent interactions earlier this year and expressed the hope of meeting again soon on the sidelines of the upcoming SCO Summit in Tianjin, China.
