This season’s floods have battered Pakistan’s economy once again, exposing its fiscal fragility and food security risks. Beyond the humanitarian toll, the deluge poses pressing questions about inflation, reconstruction, and governance.

From damaged crops to rising food prices, the deluge deepens economic and social pressures and the economic pundits of the country and the international commentators are presenting a scenario varying from a national disaster evolving into a prolonged crisis to something optimistic as a short-term setback, which the country shall sail through - as it did many times before

However, the truth lies somewhere between the two assessments.

Pakistan’s recent monsoon floods are not only a humanitarian crisis but also an economic and developmental shock that will ripple through growth, prices, and public finances. While the scale is smaller than the 2022 catastrophe, the damage is still extensive enough to dent GDP, lift inflation, and place heavy demands on limited fiscal space.

The economic losses are estimated USD 1.4–2 billion in direct damages; agriculture and transport hit hardest. GDP Growth is........

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