Federal Planning Minister Prof. Ahsan Iqbal has revealed that recent floods caused total damages estimated at Rs822 billion, with more than 1,000 lives lost nationwide, underscoring the urgent need to address flood losses through long-term reforms.
The initial assessment shows Rs430 billion in agriculture losses and Rs307 billion in infrastructure damage. Housing was severely affected with over 213,000 houses destroyed in Punjab, around 6,000 in Balochistan, 3,332 in Sindh and 3,200 in Khyber Pakhtunkhwa. An additional 3,600 homes suffered damage across Azad Kashmir and Gilgit-Baltistan. The minister confirmed the preliminary damage report has been submitted to the Prime Minister.
Education and food security were hit as well, with 2,267 educational institutions affected and rice production losses estimated between 0.6 and 1.2 million tons. The government has started issuing monthly progress reports to strengthen accountability in recovery and reconstruction efforts.
Despite these setbacks, the economy showed early signs of resilience in the first quarter. Inflation eased from 9.2% to 4.2%, tax collection rose 12.5% to Rs2,884 billion from Rs2,563 billion year on year, private sector and banking credit expanded by 16%, and foreign remittances increased by 8.5%, reflecting a partial restoration of business and investor confidence.
The minister also highlighted diplomatic advances that he said support economic recovery, including progress on a Gaza accord, renewed Pakistan–US engagement and a new Pakistan–Saudi Arabia arrangement. These developments, he noted, have helped rebuild international partnerships and recognition of Pakistan’s constructive regional role.
Central to the recovery plan is the government’s Uraan-e-Pakistan Programme, which sets a course to transform Pakistan into a one trillion dollar economy by 2035 through structural, regulatory and governance reforms. The government plans to mark 2026 as a Year of Reforms and Modernization of the Economy, eliminate red tape, introduce business-friendly policies and create a new regulatory framework to attract investment.
Prof. Ahsan Iqbal stressed that Pakistan’s future depends on innovation, sound governance and bold reforms. He said the administration will rebuild governance structures, remove bureaucratic bottlenecks and support entrepreneurship, while also engaging religious and community leaders to promote social cohesion and shared values during recovery.
The minister urged sustained policy continuity and stronger public-private collaboration to restore growth momentum and mitigate future disaster risk. Addressing flood losses through coherent reform and investment, he argued, is essential to accelerate recovery and secure long-term prosperity for communities across Pakistan.
