By ABDULLAH 
Prime Minister Shehbaz Sharif has called on the International Monetary Fund (IMF) to take into account the devastating impact of recent floods as it reviews Pakistan’s performance under the $7 billion Extended Fund Facility (EFF).
The premier made this appeal during a meeting with IMF Managing Director Kristalina Georgieva on the sidelines of the 80th United Nations General Assembly (UNGA) session in New York. The IMF review, scheduled for September 25, will assess Pakistan’s progress on key targets set under the program for the March–June 2025 quarter.
According to officials, Pakistan is on track to meet all seven Quantitative Performance Criteria (QPCs) outlined by the IMF. These reforms, supported by additional programs such as the $3 billion Stand-By Arrangement (2024) and the $1.4 billion Resilience and Sustainability Facility (RSF), have begun to stabilize the fragile economy.
However, this year’s record monsoon rains and dam releases from India have triggered catastrophic flooding across Punjab and Sindh. Both agriculture and industry the twin engines of Pakistan’s recovery have been badly hit.
- More than 1.8 million acres of farmland in Punjab remain under water.
- At least 220,000 hectares of rice fields have been submerged since August.
- Entire supply chains for food, exports, and manufacturing have been disrupted.
Officials and analysts warn the economic shock could surpass the 2022 floods, which submerged nearly one-third of the country.
During the meeting, PM Shehbaz emphasized that while Pakistan is making “steady progress” toward reform commitments, the extraordinary losses caused by floods must be reflected in the IMF’s upcoming review.
“The impact of the recent floods on Pakistan’s economy must be factored into the IMF’s review,” the premier said, according to the Press Information Department (PID).
He also expressed gratitude for the IMF’s continued support, acknowledging Georgieva’s leadership and the Fund’s timely role in backing Pakistan during past crises.
Kristalina Georgieva expressed sympathy for flood victims and underlined the importance of a damage assessment to guide recovery priorities. She commended the government’s progress on reforms and assured the IMF’s continued partnership in supporting Pakistan’s economic recovery.
Before the floods, the government had projected 4.2% GDP growth in 2026, banking on a rebound in farming and manufacturing. Now, with vast agricultural land submerged and factories disrupted, growth forecasts appear uncertain.
The government, however, remains optimistic that with IMF backing and deep-rooted structural reforms, Pakistan can still achieve macroeconomic stability in the medium term.
- The outcome of the September IMF review will decide whether Pakistan secures the next tranche of its $7 billion bailout.
- Flood damage has created fresh fiscal pressures, including food imports, loss of export earnings, and strain on currency reserves.
- Pakistan’s appeal highlights the growing challenge of climate change on fragile economies already under IMF programs.
PM Shehbaz’s meeting with the IMF chief underscores Pakistan’s delicate balancing act: meeting tough reform commitments while battling unprecedented climate disasters. As the IMF prepares its review, the global community will be watching how Pakistan navigates this dual challenge of economic stabilization and climate resilience.
If the IMF incorporates flood impact into its review, it could provide breathing space for Pakistan’s economy, ensuring reforms stay on track without overlooking the humanitarian cost of climate-driven disasters.