Pakistan, Oct. 7 -- The World Bank has forecasted Pakistan's GDP growth at 2.6% for fiscal year 2025-26. This prediction reflects the damaging effects of recent floods on the country's agriculture sector. In the previous year, Pakistan's economy grew by 2.7%, a slight increase from 2.5% in 2023-24. However, the floods are expected to cause a major decline in crop production, especially in Punjab.

According to early estimates, Punjab's agricultural output may drop by at least 10%. Key crops such as rice, wheat, cotton, sugarcane, and maize will be affected. This decrease could raise food prices and inflation in the coming years. Despite this, the World Bank expects growth to improve to 3.4% in 2026-27. The rebound will come from better ag...