The IMF will evaluate Pakistan’s expenditures and damages resulting from the floods.
The International Monetary Fund conveyed profound condolences on Saturday for the fatalities resulting from Pakistan’s catastrophic floods and announced that its forthcoming Extended Fund Facility review mission will assess the efficacy of the country’s fiscal policies and emergency measures in addressing the crisis, according to a senior IMF official.
“The mission will evaluate if the FY26 budget, its expenditure allocations, and emergency provisions are adequately flexible to meet the financial demands arising from the floods,” stated Mahir Binici, the IMF’s resident representative in Pakistan.
On Saturday, the International Monetary Fund conveyed profound condolences for the fatalities resulting from Pakistan’s catastrophic floods and announced that its forthcoming Extended Fund Facility review mission will assess the efficacy of the country’s fiscal policies and emergency measures in addressing the crisis, according to a senior IMF official.
“The mission will evaluate if the FY26 budget, its expenditure allocations, and emergency provisions are adequately flexible to meet the financial demands arising from the floods,” stated Mahir Binici, the IMF’s resident representative in Pakistan.
According to Pakistan’s National Disaster Management Authority, the flash floods have resulted in 972 fatalities to date.
The floods have devastated crops, animals, and residences throughout Punjab province and are advancing into Sindh, posing a risk of increased food prices and exacerbating difficulties in the financially constrained South Asian country.
According to a Reuters poll, Pakistan’s central bank is anticipated to maintain its key interest rate at 11% on Monday, as officials assess inflationary risks stemming from crop losses in the context of a decelerating economy. An economist projected that agricultural damage might reduce growth by as much as 0.2 percentage points this year, with demand from rehabilitation providing only a limited counterbalance.
The IMF board sanctioned a new $1.4 billion loan in May to assist Pakistan in enhancing its economic resilience against climate vulnerability and natural catastrophes.
The allocation of funding is dependent on the successful completion of reviews under the EFF, according to the official.
The Global Climate Risk Index categorizes Pakistan as one of the nations most susceptible to climate change.