Pakistan’s Sindh says floodwaters rushing downstream from Punjab pose no imminent threat

View of the Sukkur Barrage, as flood water passes through, following monsoon rains and rising levels of the Indus River in Sukkur district of Sindh province, Pakistan, on September 12, 2025. (REUTERS)
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Updated 13 September 2025
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Pakistan’s Sindh says floodwaters rushing downstream from Punjab pose no imminent threat

  • Rains, floods have killed at least 97 people and affected over 4,500 villages in Punjab since late August
  • Sindh official says there are 1,651 villages that can be partially inundated if flows reached 700,000 cusecs

KARACHI: Authorities in Pakistan’s Sindh said on Saturday that floodwater rushing downstream from the eastern Punjab province pose no major threat to the southern province.

The floodwaters have been rushing southwards to Sindh after devastating Punjab, where 97 people have been killed and submerging over two million acres of farmland has been submerged since late August.

The inflow of water was 537,220 cusecs at Guddu Barrage on the Indus river, 460,490 cusecs at Sukkur Barrage and 261,234 cusecs at Kotri Barrage in Sindh, according to the provincial information department.

Syed Salman Shah, head of the Sindh Provincial Disaster Management Authority (PDMA), acknowledged that some villages in Sindh’s Dadu district have been inundated, but the situation is “not alarming.”

“The situation in Sindh is not alarming... We have identified 1,651 such villages across Sindh that could be partially inundated in case of a water flow of 700,000 cusecs,” he told Arab News.

“The residents of these villages have already been evacuated and shifted to safe locations, where they are being provided with health care, food, and other facilities.”

Shah said riverside villages in Sindh were likely to be affected if the water flows reached 700,000 cusecs.

“But since these homes are built at height after the last floods [in 2010], there may be no damages to these villages,” he said.

The floods resulted from unusually high rains and India’s release of excess water that swelled Chenab, Ravi and Sutlej rivers in Punjab, which travel southwards to merge in the Indus river in Sindh.

The deluges have affected more than 4,500 villages and over 4.4 million people in Punjab, the country’s breadbasket province, according to Relief Commissioner Punjab Nabeel Javed. Rescuers have so far transported 2.4 million people and 19.1 million livestock to relief camps after rescuing them from marooned villages in several districts.

On Saturday, the Pakistani military, which has been engaged in rescue and relief activities, said Army Chief Field Marshall Asim Munir visited flood-affected areas of Kasur and Jalalpur Pirwala in Punjab to review the prevailing flood situation and ongoing relief efforts.

“The visit to flood affected areas of Kasur and Multan focused on enhancing synergy between the civil administration and the military to ensure effective assistance for the affected population,” the Inter-Services Public Relations (ISPR), the military’s media wing.

Monsoon season brings Pakistan up to 80 percent of its annual rainfall, but increasingly erratic and extreme weather patterns are turning the annual rains, which are vital for agriculture, food security and the livelihoods of millions of farmers, into a destructive force.

Rains, floods, landslides and similar incidents have killed at least 946 people nationwide since June 26, according to the National Disaster Management Authority (NDMA). The disaster has revived memories of the 2022 deluges, when a third of the country was submerged, over 1,700 people were killed and losses exceeded $35 billion.


Islamabad dismisses claims about paying up to 8 percent interest on foreign loans as ‘misleading’

Updated 22 February 2026
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Islamabad dismisses claims about paying up to 8 percent interest on foreign loans as ‘misleading’

  • Pakistan has long relied on external loans to help bridge persistent gaps in public finances and foreign exchange reserves
  • Pakistan’s total external debt, liabilities stand at $138 billion at an overall average cost of around 4 percent, ministry says

KARACHI: Pakistan’s finance ministry on Sunday dismissed as “misleading” claims that the country is paying up to 8 percent interest on external loans, saying the overall average cost of external public debt is approximately 4 percent.

Pakistan has long relied on external loans to help bridge persistent gaps in public finances and foreign exchange reserves, driven largely by a narrow tax base, chronic trade deficits, rising debt-servicing costs and repeated balance-of-payments pressures.

Over the decades, successive governments have turned to multilateral and bilateral lenders, including the International Monetary Fund, the World Bank and the Asian Development Bank, to support budgetary needs and shore up foreign exchange reserves.

The finance ministry on Sunday issued a clarification in response to a “recent press commentary” regarding the country’s external debt position and associated interest payments, and said the figures required contextual explanation to ensure accurate understanding of Pakistan’s external debt profile.

“Pakistan’s total external debt and liabilities currently stand at $138 billion. This figure, however, encompasses a broad range of obligations, including public and publicly guaranteed debt, debt of Public Sector Enterprises (both guaranteed and non-guaranteed), bank borrowings, private-sector external debt, and intercompany liabilities to direct investors. It is therefore important to distinguish this aggregate figure from External Public (Government) Debt, which amounts to approximately $92 billion,” it said.

“Of the total External Public Debt, nearly 75 percent comprises concessional and long-term financing obtained from multilateral institutions (excluding the IMF) and bilateral development partners. Only about 7 percent of this debt consists of commercial loans, while another 7 percent relates to long-term Eurobonds. In light of this composition, the claim that Pakistan is paying interest on external loans ‘up to 8 percent’ is misleading.

The overall average cost of External Public Debt is approximately 4 percent, reflecting the predominantly concessional nature of the borrowing portfolio.”

With respect to interest payments, public external debt interest outflows increased from $1.99 billion in Fiscal Year (FY) 2022 to $3.59 billion in FY2025, representing an increase of 80.4 percent, not 84 percent as reported. In absolute terms, interest payments rose by $1.60 billion over this period, not $1.67 billion, it said.

According to the State Bank of Pakistan’s records, Pakistan’s total debt servicing payments to specific creditors during the period under reference were as follows: the IMF received $1.50 billion, of which $580 million constituted interest; Naya Pakistan Certificates payments totaled $1.56 billion, including $94 million in interest; the Asian Development Bank received $1.54 billion, including $615 million in interest; the World Bank received $1.25 billion, including $419 million in interest; and external commercial loans amounted to nearly $3 billion, of which $327 million represented interest payments.

“While interest payments have increased in absolute terms, this rise cannot be attributed solely to an expansion in the debt stock,” the ministry said. “Although the overall debt stock has increased slightly since FY2022, the additional inflows have primarily originated from concessional multilateral sources and the IMF’s Extended Fund Facility (EFF) under the ongoing IMF-supported program.”

Pakistan secured a $7 billion IMF bailout in Sept. 2024 as part of Prime Minister Shehbaz Sharif’s efforts to stabilize the South Asian economy that narrowly averted a default in 2023. The government has since been making efforts to boost trade and bring in foreign investment to consolidate recovery.

“It is also important to note that the increase in interest payments reflects prevailing global interest rate dynamics. In response to the inflation surge of 2021–22, the US Federal Reserve raised the federal funds rate from 0.75-1.00 percent in May 2022 to 5.25–5.50 percent by July 2023. Although rates have since moderated to around 3.75 percent, they remain significantly higher than 2022 levels,” the finance ministry said.

“The government remains committed to prudent debt management, transparency, and the continued strengthening of Pakistan’s macroeconomic stability,” it added.