In a year that has already seen Pakistan battered by relentless monsoon rains, the country now faces one of its most severe humanitarian and economic crises in decades. Since June 2025, more than 2 million people have been forced from their homes as floodwaters have swept across vast swathes of the country, submerging thousands of villages and leaving destruction in their wake. According to Pakistan’s disaster management authority, over 950 people—including more than 250 children—have lost their lives during this year’s monsoon season, with the toll rising almost daily.
As reported by Inside Climate News, the floods have so far impacted more than 5.8 million people, devastating livestock, agriculture, and critical infrastructure. Roads have been washed away, and entire communities have been cut off, complicating already difficult rescue and relief operations. The provinces of Punjab and Khyber Pakhtunkhwa have borne the brunt of the disaster, though the southern Sindh province has also seen fresh evacuations in recent weeks as the waters continue to move south.
On Friday, September 12, officials reported nine additional deaths, including four children, underscoring the ongoing danger. Health concerns are also mounting: the United Nations Office for the Coordination of Humanitarian Affairs noted on Thursday that Khyber Pakhtunkhwa had recorded 1,329 confirmed cases of dengue fever—a mosquito-borne disease that thrives in the aftermath of flooding. Punjab, meanwhile, is experiencing its worst monsoon flooding in nearly four decades, according to the UN office.
But the human tragedy unfolding is only one part of the story. The economic fallout from the floods is beginning to ripple through Pakistan’s already fragile economy. As Reuters reported, the State Bank of Pakistan is widely expected to keep its key interest rate steady at 11% when it meets on Monday, as policymakers grapple with the inflationary pressures unleashed by the disaster. Since late June, floods have swamped much of Punjab’s farmland—disrupting supply chains, destroying crops, and sparking fears of food shortages and price spikes.
The numbers are sobering: nearly 950 people dead, 6,500 livestock lost, 8,200 houses destroyed, and 4.5 million people displaced as the floodwaters surge southward. Analysts warn that agricultural losses could shave 0.2% off the country’s GDP growth this year, although reconstruction efforts may provide some offset. “Given the uncertainty, we expect the central bank may pause in September, though our base case allows for a 50–100 basis point cut by year-end,” Waqas Ghani, head of research at JS Global Capital, told Reuters.
The impact on food prices is already being felt. Supply shocks in wheat, rice, and vegetables threaten to keep inflation above the central bank’s 5–7% target, with wheat prices alone jumping about 50% in just one month. In August, inflation eased to 3% from 4.1% in July, but the finance ministry has warned that the worst may be yet to come. “Manufacturers have also raised selling prices, citing higher fuel and transport costs and delays in input deliveries caused by flooding,” Ahmad Mobeen, a senior economist at S&P Global Market Intelligence, explained to Reuters.
Pakistan’s central bank has slashed rates by 1,100 basis points since June 2024—down from a record 22% after inflation neared 40% last year. The last cut came in May, followed by a pause in June as oil prices rose amid Middle East tensions. While some analysts see room for further cuts later in 2025, the inflationary shock from the floods has made policymakers wary. “Real interest rates are still high enough to allow for a cut, especially with the Fed turning dovish, but the floods are inflationary, particularly for food,” Ammar Habib, an independent analyst, told Reuters.
All of this comes as Pakistan is still reeling from previous climate disasters. In 2022, the country suffered catastrophic floods triggered by seven to eight times the normal amount of rainfall—affecting more than 33 million people. According to a recent report by World Weather Attribution, global warming made this year’s monsoon rainfall significantly more intense, compounding the devastation. “Pakistan is right now in the reactionary mode,” said Fahad Saeed, a senior climate scientist at Climate Analytics and one of the authors of the report. “It is unable to build its resilience.”
Saeed pointed out that while atmospheric conditions this year differed from 2022, both years saw extremely high spring temperatures that worsened flood conditions. The country’s vulnerability is heightened by geography and development patterns: high temperatures and air moisture in the Indus Basin, rapidly melting glaciers in the Himalayan and Karakoram mountains, and cross-border flooding from India all contribute to rivers and streams overflowing. Meanwhile, deadly heat, air pollution, an under-resourced healthcare system, and a heavy reliance on agriculture make Pakistan especially susceptible to climate shocks.
Despite this, Pakistan is responsible for less than 1% of global greenhouse gas emissions—a stark illustration of the global injustice of climate change. The nation’s plight has prompted calls from advocates, both local and international, for wealthier countries to step up support in times of crisis.
Neighboring countries are also suffering from nature’s fury. India has endured deadly floods and cloud bursts in its northern regions this summer, while Afghanistan is still coping with the aftermath of a devastating earthquake on August 31 that claimed more than 2,200 lives. Further east, Indonesia has seen its worst floods in a decade, with at least 23 people killed between Bali and East Nusa Tenggara province this week alone.
Back in Pakistan, government officials have stressed ongoing rescue operations, including military deployments and continued emergency alerts delivered online and via mobile apps. “The prime minister of Pakistan made it very clear that this is everyone’s job and we will all deal with this natural disaster together, and not only provide relief to the people but also speed up rescue efforts,” Attaullah Tarar, the federal minister for information and broadcasting, stated at a press briefing on September 4.
Yet, experts say the crisis has been exacerbated by government mismanagement. Saeed noted failures to prevent residential development in high-risk, low-lying areas and conflicting public messaging from various agencies during the floods. These issues, he argues, have amplified the scale of destruction and hampered relief efforts. “They need to take actions which are embedded in science as well as informed by the community, because they have their own knowledge,” Saeed said. “If you want to address the issues of climate change, it has to start from the bottom.”
As Pakistan faces the daunting task of rebuilding, the urgency for adaptive and preparatory measures—rooted in scientific evidence and community input—has never been clearer. The country’s struggle is a stark reminder of the disproportionate burden climate change places on the world’s most vulnerable, even as they contribute the least to the crisis.