Pakistan PM Shehbaz urges IMF to factor in flood impact during $7bn programme review

Dubai: Prime Minister Shehbaz Sharif on Wednesday said Pakistan was steadily meeting its International Monetary Fund (IMF) programme commitments but urged the lender to factor in the recent flood damage in its upcoming review.

The premier made the remarks during a meeting with IMF Managing Director Kristalina Georgieva on the sidelines of the 80th UN General Assembly session in New York, according to a report in Dawn.

A statement issued by the Press Information Department (PID) said Shehbaz emphasised that Pakistan was making progress on the IMF’s $7 billion Extended Fund Facility (EFF), but “the impact of the recent floods on Pakistan’s economy must be factored into the IMF’s review.”

According to a Topline Securities report, Pakistan is on track to meet all seven Quantitative Performance Criteria (QPCs) ahead of the September 25 review, which will cover performance for the March–June 2025 quarter.

The appeal comes as massive floods have hit both rural and industrial centres, causing billions in damages and threatening food supplies, exports and recovery.

• At least 220,000 hectares of rice fields were inundated between August 1 and September 16, according to GEOGLAM.

• The Punjab Provincial Disaster Management Authority reported 1.8 million acres of farmland under water.

The government had earlier projected 4.2% growth in 2026, driven by a rebound in farming and manufacturing after IMF-led stabilisation. Record rains since late June, however, have sharply undermined those expectations.

Georgieva expressed sympathy for flood victims and stressed the importance of damage assessments to underpin recovery priorities. She also commended Shehbaz’s commitment to “sound macro-economic policies” and reiterated the IMF’s support for long-term reforms.

Shehbaz, in turn, acknowledged the IMF’s “timely support” under its various instruments, including the $3bn Stand By Arrangement, the current $7bn EFF and the $1.4bn Resilience and Sustainability Facility (RSF). “With deep-rooted structural reforms, Pakistan’s economy is showing positive signs of stabilisation and moving towards recovery,” he was quoted as saying.

Separately, Shehbaz met World Bank Group President Ajay Banga, appreciating the bank’s support for Pakistan’s reform agenda. He praised the new Country Partnership Framework (CPF) providing $40bn for Pakistan and pledged to ensure its effective implementation.

The World Bank president reaffirmed commitment to Pakistan’s development agenda, highlighting support for economic reforms and climate resilience initiatives under the CPF.