Shehbaz asks IMF to factor flood losses into next review

Prime Minister Shehbaz Sharif urged the International Monetary Fund to account for the economic toll of recent floods in Pakistan during the lender’s upcoming programme review. He conveyed the request to IMF Managing Director Kristalina Georgieva on the sidelines of the UN General Assembly, while noting Pakistan’s progress on targets under the ongoing facility. Officials say record monsoon rains since late June—exacerbated by water releases from across the border—have inundated large parts of Punjab and Sindh, disrupted supply chains and slowed an incipient recovery. According to the National Disaster Management Authority, the disasters have caused significant loss of life and mass displacement. The prime minister praised the IMF’s support through a $3 billion Stand-By Arrangement in FY2024 and the subsequent $7 billion Extended Fund Facility, and said structural reforms are beginning to stabilise the economy. Georgieva expressed sympathy for those affected and emphasised the importance of damage assessments to shape recovery priorities. Separately, Shehbaz met World Bank Group President Ajay Banga and briefed him on reforms spanning revenue mobilisation, energy sector changes, privatisation and climate resilience. The government maintains that these steps have helped restore investor confidence and support more durable, inclusive growth.