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Punjab flood devastation threatens Pakistan’s economy

Punjab flood devastation threatens Pakistan’s economy
Residents sit outside a makeshift tent beside flooded field, following monsoon rains and rising water levels of the Chenab River, in Patraki village, Chiniot district, Punjab province, Pakistan, August 30, 2025. (Reuters)
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Updated 11 min 33 sec ago

Punjab flood devastation threatens Pakistan’s economy

Punjab flood devastation threatens Pakistan’s economy
  • Floodwaters have submerged rice, sugarcane, maize, vegetables and cotton fields
  • Farmers and exporters warn the impact on agriculture in Punjab will be staggering

CHINIOT: Across the fertile plains of Pakistan’s Punjab, families are struggling to rebuild their lives after the worst flooding in decades swept away homes, destroyed crops, and drowned livestock.

“Thirteen of my 15 acres are gone,” said Muhammad Amjad, 45, a rice and potato farmer in Chiniot, as he stood by submerged fields. “Our rice is completely destroyed. Women and children have evacuated. Men are left guarding what remains.”

The provincial disaster management authority said more than two million people have been affected, with more than 2,000 villages inundated. Approximately 760,000 people and 516,000 animals have been evacuated, and at least 33 people have died in less than a week.

Amish Sultan, 50, lost his only source of income.

“I have 10 buffaloes. They’re so weak there’s no milk left for my children, let alone to sell. I used to earn 100,000 to 150,000 rupees a month. That stability is gone.”

Farm laborer Mehdi Hassan, 40, said entire neighborhoods were washed away.

“My home is completely destroyed. We’ve been left on the roadside with whatever we could carry. We tried to build our own dams but the water still took everything.”




Bar charts with deaths and injuries in floods that hit Pakistan. (NDMA/ Reuters)

Officials say the floods are the worst in decades, with major dams near capacity, and more rain is forecast.

BUMPER TO BUST

Farmers and exporters warn the impact on agriculture will be staggering. Rice, sugarcane, maize, vegetables, and cotton fields across Punjab are under water.

“We were expecting a bumper rice crop this year,” said Ibrahim Shafiq, export manager at Latif Rice Mills.

“Paddy was forecast to open at 3,200–3,600 rupees per 40kg, but with flood damage, prices could rise to 5,000–5,500. That will push rice prices up for local consumers and make us uncompetitive against India internationally.”

Cotton losses also threaten the textile industry, which makes up more than half of Pakistan’s exports, at a time when the country faces a 19 percent US tariff in its biggest market.

Agriculture technology firm Farmdar said the damage is likely to be exponential, given the vast stretches of farmland along the rivers now under water.




A pie chart showing the causes of Pakistan's flood deaths. (NDMA/ Reuters)

Ghasharib Shoukat, co-founder of commodities platform Zarai Mandi warned wheat, vegetable, and cotton shortages would ripple through supply chains, hurting exports and household budgets.

The disaster comes at a sensitive moment for Pakistan’s fragile economy. Inflation had cooled to 4.1 percent in July from 11.1 percent a year earlier, and food inflation, which spiked above 50 percent in 2023, had eased.

Officials now expect the August inflation reading, due Monday, to come in at 4–5 percent, with food shortages already driving prices higher. Analysts say delayed wheat sowing, shrinking rice exports and the need to import cotton will deepen the pressure.

TENTS NOW, TOMORROW UNKNOWN

The destruction extends beyond fields. In Lahore, 38-year-old rickshaw driver Aslam said he waded through six feet (two meters) of water to pull his three-wheeler vehicle to safety.




Map showing the Indus River system flowing into Pakistan and the major dams. (Natural earth/ Reuters)

“I’ve lived near the Ravi all my life and it never flooded my home before. This time it came inside in hours. If I hadn’t saved my rickshaw, we would have lost everything. It is my only livelihood,” said Aslam, who is now living in a relief tent.

A muddy tent city has been erected near the Ravi River, where families huddle under tarpaulins and tents, some beside foul-smelling drains.

About 150 to 200 camps have been set up for the displaced just in that area, said Dr. Ijaz Nazeer of Al Khidmat Foundation. Each tent is home to around five to eight people.

With three of Pakistan’s main rivers in flood, authorities in the Punjab have set up 511 relief camps, 351 medical sites, and 321 veterinary facilities, evacuating nearly 481,000 people and 405,000 animals so far. More than 15,000 police officers have been deployed as monsoon rains continue.

Farmers and experts warn the cost of recovery will run into billions of rupees to rebuild homes and re-establish farms.

Farmer and activist Aamer Hayat Bhandara said unless the recovery is supported, food insecurity will deepen.

“Farmers grow the food that sustains us all. If they are left alone in times of disaster, the whole nation will suffer,” he said.


Rains put Islamabad on flood alert as swollen rivers continue to threaten new inundations 

Rains put Islamabad on flood alert as swollen rivers continue to threaten new inundations 
Updated 48 sec ago

Rains put Islamabad on flood alert as swollen rivers continue to threaten new inundations 

Rains put Islamabad on flood alert as swollen rivers continue to threaten new inundations 
  • Authorities warn of rising flows in Chenab, Ravi and Sutlej as monsoon continues
  • Punjab still reeling from deadly deluges that killed 33, displaced millions last week

ISLAMABAD: Authorities in Pakistan’s federal capital issued a flood alert on Monday amid heavy rains, as swollen rivers Chenab, Ravi and Sutlej continued to swell from downpours and cross-border water releases, raising the risk of fresh inundations across the Punjab province and beyond.

The warning came after days of devastation in Punjab, where more than two million people have been affected, with more than 2,000 villages inundated. Approximately 760,000 people and 516,000 animals have been evacuated, and at least 33 people have died in less than a week, according to the Provincial Disaster Management Authority.

Nationwide, rains and floods have killed 854 people since June 26 when the monsoon season began. 

The emergency has revived memories of the catastrophic 2022 deluge, when a third of Pakistan was submerged, more than 1,700 people were killed, 30 million displaced and damages estimated at $35 billion.

“Rain in the federal capital, district administration on high alert,” the deputy commissioner of Islamabad said in a statement as he issued orders for “special monitoring of low-lying areas and drains.”

Muhammad Nasir Butt, spokesperson for the deputy commissioner, told Arab News most parts of the capital remained unaffected by the rains, with only minor water accumulation reported. He said teams were working in the D-12 neighborhood and on Margalla Road to clear water patches.

“A total of 42 millimeters of rain was recorded today at Saidpur village, but conditions have cleared and there is no major flooding in the federal capital,” Butt added.

A PDMA update issued on Monday reported the Chenab flowing at 91,940 cusecs at Marala Headworks, 136,039 at Khanki, and 159,940 at Qadirabad, with Trimmu recording 550,965 cusecs and steady. At Chiniot Bridge, water was at 132,675 cusecs and rising.

On the Ravi, Balloki registered 152,415 cusecs and steady, while Sidhnai recorded 99,250 cusecs and rising. The Sutlej was flowing at 253,068 cusecs at Ganda Singh Wala, 124,274 at Sulemanki, and 121,013 at Panjnad.

“All relevant departments are on alert due to water being released into the Chenab by India,” Irfan Ali Kathia, director general of the Provincial Disaster Management Authority (PDMA) Punjab, told reporters. “Punjab is monitoring the situation in the rivers round the clock.”

Kathia warned of an “extremely high flood level” at Balloki on the Ravi, while Panjnad, the confluence of Punjab’s five rivers, was expected to swell to nearly one million cusecs between Sept. 2–3.

Separately, Pakistan’s commissioner for Indus Waters circulated a letter to government departments citing an Indian High Commission warning of possible “high flood” levels at Harike and Ferozepur on the Sutlej. 

India routinely releases excess water from its reservoirs when they reach capacity, under arrangements governed by the Indus Waters Treaty. 
 


Pakistan seeks deeper China ties with new push on finance, ports and CPEC

Pakistan seeks deeper China ties with new push on finance, ports and CPEC
Updated 9 min 21 sec ago

Pakistan seeks deeper China ties with new push on finance, ports and CPEC

Pakistan seeks deeper China ties with new push on finance, ports and CPEC
  • Development comes as Pakistan slowly recovers from a macroeconomic crisis under a $7 billion IMF program
  • PM Shehbaz Sharif invites Chinese companies to establish Special Economic Zones, broaden bilateral trade

ISLAMABAD: Pakistan is seeking to broaden its partnership with China by advancing cooperation in finance, port development and the next phase of the China-Pakistan Economic Corridor (CPEC), top Pakistani officials said on Monday, signaling Islamabad’s renewed focus on strengthening economic integration with its longtime strategic ally.

Pakistan sees China as its top economic and diplomatic ally, with Beijing making extensive investments in energy and infrastructure projects in Pakistan as part of CPEC, a major segment of China’s Belt and Road Initiative that aims to build land and maritime trade routes linking Asia with Africa and Europe.

On Monday, Pakistan’s Prime Minister Shehbaz Sharif, who is on a visit to China since Saturday, and Finance Minister Muhammad Aurangzeb held key meetings with senior Chinese officials and discussed with them further strengthening bilateral cooperation in the fields of finance, ports and connectivity.

In a meeting with Communist Party Secretary of Tianjin-Binhai New Area, Lian Maojun, Sharif noted the China-Pakistan Economic Corridor has played a significant role in developing Pakistan’s energy sector and building infrastructure, according to the Pakistan PM’s office.

“The second phase of CPEC would focus on cooperation in smart cities, the agricultural industry, and next-generation technology,” Sharif said, adding that Pakistan seeks to expand economic cooperation and trade with Tianjin-Binhai New Area.

“Pakistan wants to broaden cooperation and trade between its Karachi Port, Port Qasim, and Gwadar Port with China’s Tianjin Port. Pakistan wants to benefit from Tianjin-Binhai New Area’s expertise in port handling and port operations.”

Launched in 2015, the CPEC infrastructure program includes energy projects, highways, railways and the development of the Gwadar Port on the Arabian Sea. Pakistan and China are currently working to advance into “CPEC 2.0,” focused on industrialization, agriculture, energy and connectivity.

Communist Party Secretary Lian briefed PM Sharif on Tianjin-Binhai New Area industries, which focus on intelligent technology, green petrochemicals, automotive, biomedicine, new energy, aerospace, cold chain storage, deep-sea mining, gene therapy and many other sectors.

“Pakistan welcomes Chinese companies to establish Special Economic Zones (SEZs) in the country,” Sharif said. “Pakistan seeks to expand cooperation with Tianjin-Binhai New Area’s industries in pharmaceuticals, biomedicine, and animal vaccines.”

The development comes as the South Asian country slowly recovers from an economic meltdown under a $7 billion International Monetary Fund (IMF) loan program and looks to boost trade, tourism and foreign investment for a sustainable economic growth.

Separately, Finance Minister Aurangzeb met with Dr. Pan Gongsheng, governor of the People’s Bank of China (PBOC), and Liao Lin, chairman of the Industrial and Commercial Bank of China (ICBC), in Beijing on Monday to advance Pakistan–China financial cooperation, the Pakistani finance ministry said.

During his meeting with the People’s Bank of China governor, the finance minister appreciated China’s longstanding economic support to Pakistan and briefed him on Islamabad’s recent economic performance, reform agenda and the positive outlook reflected in improved international credit ratings.

“The Minister acknowledged the crucial role of the PBOC in supporting Pakistan through multilateral engagements and in strengthening financial cooperation between the two countries,” the ministry said. “He underscored the importance of deepening financial integration and expanding cooperation in areas of mutual interest.”

The development comes months after China rolled over $3.4 billion in loans to Islamabad, Reuters reported in June. Beijing rolled over $2.1 billion, which has been in Pakistan’s central bank’s reserves for the last three years, and refinanced another $1.3 billion commercial loan, which Islamabad had paid back two months ago.

The loans are critical to shoring up Pakistan’s low foreign reserves, which the International Monetary Fund (IMF) required to be over $14 billion at the end of the current fiscal year on June 30.

In his meeting with the ICBC chairman, Aurangzeb conveyed Pakistan’s gratitude for the continued support in development financing, commercial facilities, and the refinancing of existing obligations. He emphasized that ICBC’s strong presence in Pakistan reflects the deepening financial and economic partnership, and discussed prospects for enhanced cooperation in investment, trade financing and Pakistan’s forthcoming initiatives in financial diversification, according to the finance ministry.

Aurangzeb underlined that Pakistan’s economic reform program is designed to deliver long-term stability, resilience, and sustainable growth. He emphasized that partnerships with Chinese financial institutions are not only vital for meeting immediate financing needs but are also integral to Pakistan’s broader strategy of diversification, financial innovation, and regional integration, highlighting that new initiatives, such as accessing the Chinese onshore markets, will help open fresh avenues for investment, strengthen market confidence, and align Pakistan’s financial system more closely with regional dynamics.

“Both sides agreed that the Pakistan–China economic partnership has entered a new phase, with opportunities to deepen cooperation across banking, investment, and capital markets,” the Pakistani ministry said.

“Senator Aurangzeb reaffirmed Pakistan’s commitment to a forward-looking partnership with China, where financial cooperation will serve as a cornerstone for broader economic engagement.”


UN launches migration network in Pakistan to curb human smuggling

UN launches migration network in Pakistan to curb human smuggling
Updated 01 September 2025

UN launches migration network in Pakistan to curb human smuggling

UN launches migration network in Pakistan to curb human smuggling
  • The body unites over 30 UN agencies to help promote safe migration, address human trafficking
  • Development comes amid Pakistan crackdown on human smugglers after multiple boat tragedies

ISLAMABAD: The United Nations (UN) has launched its Network on Migration (NM) in Pakistan to tackle human trafficking and migrant smuggling, Pakistani state media reported on Monday.

The body, set up in 2018 and led by the International Organization for Migration (IOM), unites over 30 UN agencies to help governments promote safe migration and address trafficking, smuggling, labor rights and migrant access to services.

Thousands of young Pakistanis migrate illegally in search of jobs every year. A 2023 UN Office on Drugs and Crime and European Union (UNODC-EU) study found that 24,000 Pakistanis unlawfully entered EU states in the past three years.

The Network on Migration launch was announced at a UN-hosted event in Islamabad that also featured Pakistan’s first Migration Multi-Partner Trust Fund program, according to the Associated Press of Pakistan (APP).

“The establishment of this network is a testament to our collective resolve to ensure that migration is safe, orderly and regular,” APP quoted UN Resident Coordinator Mohamed Yahya as saying.

“It provides a crucial platform to shift the narrative on migration, amplify a unified voice and foster the innovation needed to address complex challenges related to mobility and protecting the rights of all people on the move.”

The development comes amid a crackdown on human smugglers in Pakistan after multiple boat tragedies resulted in the loss of lives of its citizens in recent years.

Several Pakistanis attempt the dangerous and illegal journey each year to opt for a better life as the cash-strapped country navigates a tricky path to economic recovery from a macroeconomic crisis.

The Migration Multi-Partner Trust Fund program will be jointly run by IOM and UNODC, in collaboration with the Pakistani government, private sector, media and civil society, and contribute to efforts in the areas of migration, governance, human trafficking and migrant smuggling.

“The network will leverage partnerships across the UN system to promote policy coherence and integrate migration policies into the broader development goals,” the APP report read.

On the occasion, head of the UN Migration Network Secretariat Jonathan Prentice, congratulated Pakistan for playing its role globally to help improve migration governance.

The launch aims to align Pakistan’s migration policies with global frameworks, with officials urging sustained cooperation among government, partners and communities.

“Life makes us move. But journeys, either from our home to new destinations or back to our country, should become easier and more dignified,” Moazzam Ali, a Pakistani migrant who recently returned from Romania to live in his home country, said while sharing his experience at the event.


Pakistan August inflation cools to 3 percent, flood impact looms

Pakistan August inflation cools to 3 percent, flood impact looms
Updated 01 September 2025

Pakistan August inflation cools to 3 percent, flood impact looms

Pakistan August inflation cools to 3 percent, flood impact looms
  • Economists say widespread crop damage could quickly feed into higher food inflation
  • Floods have killed 35 and affected over 2.3 million, swamping more than 2,200 villages

KARACHI: Pakistan’s consumer price inflation slowed to 3.0 percent year-on-year in August from 4.1 percent in July, data showed on Monday, though economists warned that weeks of flooding in Punjab province could put food prices under renewed pressure.

The Finance Ministry last week projected August inflation in a 4.0-5.0 percent range — down from double-digit annual readings through much of last year — citing stable macroeconomic conditions, improved manufacturing and agricultural support.

But the ministry warned that extreme weather posed a threat to farm sector growth, even at a time of improved agricultural credit and fertilizer supplies.

Authorities in Punjab, the country’s breadbasket, said more than 2.3 million people were affected and 35 killed in the floods that swamped more than 2,200 villages after heavy monsoon rains.

Economists say widespread crop damage could quickly feed into higher food inflation, which had eased in August on account of lower perishable prices.

On a month-on-month basis, consumer price inflation fell 0.6 percent in August, the statistics bureau said.


New polio case confirmed in Pakistan’s northwest, bringing 2025 total to 24

New polio case confirmed in Pakistan’s northwest, bringing 2025 total to 24
Updated 01 September 2025

New polio case confirmed in Pakistan’s northwest, bringing 2025 total to 24

New polio case confirmed in Pakistan’s northwest, bringing 2025 total to 24
  • Latest polio case reported in 20-month-old-girl from Pakistan’s northwestern Tank district
  • Development takes place as Pakistan carries out polio vaccination drive across 99 districts

KARACHI: Pakistan reported a new polio case from the country’s northwestern Khyber Pakhtunkhwa (KP) province on Monday, taking the nationwide tally to 24 this year as authorities launched a fresh vaccination campaign in selected districts of the country today. 

The latest case was reported from the country’s northwestern Tank district, raising the number of polio cases reported from KP this year to 16. Pakistan’s southern Sindh province has reported six cases while Punjab and northern Gilgit-Baltistan have reported one case of the infection each.

Polio is a highly infectious and incurable disease that can cause lifelong paralysis. The only protection is repeated doses of oral vaccine for every child under five, along with timely routine immunizations.

“The latest polio case involves a 20-month-old girl from Union Council Ping A, District Tank,” the Pakistan Polio Eradication Programme said in a statement. 

Pakistan launched a phase-wise polio vaccination campaign in 99 targeted districts across the country on Monday, the National Emergency Operations Center (NEOC) said in a statement. 

The NEOC said over 240,000 polio volunteers are participating in the drive. It said more than 4.1 million children will receive the vaccine in seven high-risk districts in Punjab while more than 8.9 million children will be vaccinated in 25 high-risk districts of Sindh. 

“In 26 high-risk districts of Balochistan, vaccination will be ensured for more than 2.1 million children,” the NEOC said, adding that more than 5.7 million children will be vaccinated in 27 high-risk districts of KP province.

The campaign will also cover Islamabad and two districts each of Azad Kashmir and GB, while it was postponed in nine districts of Punjab last week due to floods.

The NEOC urged parents to cooperate with polio teams and complete the immunization timely.

“Ensure that all your children under five years of age are given the polio drops,” the statement said. “Complete the routine immunization schedule for your children on time to protect them from polio and other diseases.”

Pakistan and Afghanistan are the only two countries where polio remains endemic. 

The country made significant progress in curbing the virus, with annual cases dropping from around 20,000 in the early 1990s to just eight in 2018. Pakistan reported six cases in 2023 and only one in 2021, but the country saw a sharp resurgence in 2024 with 74 cases recorded.

Pakistan’s polio program began in 1994, but efforts to eradicate the virus have been repeatedly undermined by vaccine misinformation and resistance from some religious hard-liners who claim that immunization is a foreign plot to sterilize Muslim children or a cover for Western espionage.

Militant groups have also frequently targeted polio vaccination teams and the security personnel assigned to protect them, often resulting in deadly attacks, particularly in KP and Balochistan.