The recent floods have once again highlighted Pakistan’s vulnerability to climate change. Beyond the tragic human cost of lives lost, homes destroyed, and millions displaced, the disaster has left behind staggering economic damage.
Crops were destroyed, livestock perished, and irrigation networks were badly hit. These floods are not a one-off tragedy; they are becoming a recurring pattern. The flash floods of 2022 were the major cause of massive loss of around $30 to 35 billion — nearly 10% of GDP — and that also contributed to displacing 33 million people.
With global warming driving extreme weather, Pakistan needs to take actual steps and follow a multifaceted solution to build resilience to protect its land.
Agriculture: The Backbone of the Economy
No other sector of the Pakistan contributes as widely to Pakistan’s well-being as agriculture. While its direct share in GDP is around 23%, the ripple effects extend much further. Manufacturing, trade, transport, and allied services depend on farm output, raising agriculture’s indirect contribution to nearly half the economy.
A weak rural economy therefore, means
- Slower GDP growth
- Falling employment
- Higher poverty
- Food insecurity
Employment and Poverty Linkages
Around 37 percent of Pakistan’s labour force works directly on farms, but if we include non-farm rural jobs, nearly 70% of total employment relies upon rural economy. Any shock in this sector quickly erodes purchasing power and pushes families into poverty. Already, rural poverty stands at 28%, compared to 11% in urban areas, and the floods have only deepened this divide.
Food inflation is the most immediate consequence of disrupted crops and broken supply chains. Poor households, who spend about 40% of their income on food, are hardest hit. Malnutrition is already widespread, with 38 million Pakistanis facing food insecurity and 18% of children malnourished — a crisis made worse by flood-related shortages.
Export Losses and Industrial Decline
Nearly 80% of Pakistan’s exports — from textiles and rice to leather and food products — are rooted in rural output. With cotton and rice production hit, imports will rise, worsening the current account deficit. At the same time, manufacturing sectors like tractors, fertilisers, motorcycles, and consumer goods, all driven by rural demand, face declining sales, threatening jobs and incomes nationwide.
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Steps to Revive and Protect the Rural Economy
Short to Medium Term Measures
• Support small farmers: Provide certified seeds, fertilisers, and pesticides at subsidized rates through Kissan Cards.
• Cash transfers: Use the BISP database to deliver urgent assistance to flood-affected households.
• Credit relief: Speed up agriculture loan disbursement and reschedule outstanding debt for small farmers.
• Livestock care: Deploy mobile veterinary units in worst-hit areas to save remaining herds.
• Infrastructure repair: Audit waterways, clear encroachments, and strengthen embankments, while building shelters in elevated zones.
Long-Term Resilience
• Water management: Line watercourses, promote drip and sprinkler irrigation, and expand small dams and rainwater reservoirs to recharge groundwater.
• Climate-smart agriculture: Fund R&D for seeds resistant to heat, floods, and pests.
• Storage and logistics: Incentivize private investment in warehousing, cold chains, and refrigerated transport.
• Contract farming: Encourage agreements between producers and processors to stabilise prices and incomes.
• Wheat policy reform: While trade should remain deregulated, provinces must maintain reserves for lean months instead of controlling flour prices.
• Integrated water policy: Follow the 2018 National Water Policy to manage rivers, floods, groundwater, and irrigation as one system.
A Call for Urgency
The floods are considered to be a clear reminder that Pakistan’s rural economy is not just about farmers — it helps to sustain half of the GDP of Pakistan and feeds millions drives exports.
You cannot ignore climate adaptation and rural resilience, ignoring meaning bearing the brunt again and again due to negligence. Building a strong, climate-smart rural economy is not a choice; it is the sole path that can lead the country towards economic growth and poverty elimination.