Prime Minister Shehbaz Sharif has asked the International Monetary Fund to factor in the impact of Pakistan’s recent floods while reviewing the country’s bailout programme.
“We are making steady progress towards meeting programme targets, but the devastation caused by the floods must be reflected in the IMF review,” Sharif told International Monetary Fund (IMF) Managing Director Kristalina Georgieva during their meeting in New York.
The PM office's press release appreciated the IMF’s “longstanding constructive partnership” with Pakistan, saying it had “further strengthened under Ms Georgieva’s leadership.”
The statement highlighted the IMF's timely support through a $3 billion Stand-By Arrangement in FY2024, followed by a $7 billion Extended Fund Facility (EFF) and a $1.4 billion Resilience and Sustainability Facility (RSF).
Sharif added that Pakistan’s economy was “showing positive signs of stabilization and moving towards recovery with deep-rooted structural reforms,” crediting IMF support for guiding the reform process.
Read: Flood danger recedes across Pakistan, rehabilitation begins
According to the PM Office, Georgieva expressed sympathy with the flood-affected population and stressed that “damage assessment will be critical to underpin recovery priorities.” She commended the premier’s “commitment to pursuing sound macroeconomic policies” and reiterated the IMF’s continued support for Pakistan.
Prime Minister Muhammad Shehbaz Sharif meets Managing Director of IMF Ms. Kristalina Georgieva on the sidelines of 80th Session of UNGA. New York, 24 September 2025.#PMShehbazAtUNGA pic.twitter.com/KJlW8hRTql
— Government of Pakistan (@GovtofPakistan) September 24, 2025
Government of Pakistan posted on X about the visit
IMF Mission
IMF will send a mission to Islamabad from September 25 to October 8 for the second review of Pakistan’s economy under the EFF, which will determine the release of the third loan tranche of $1 billion.
“The mission will assess whether the FY26 budget, its spending allocations and emergency provisions remain sufficiently agile to address the spending needs necessitated by the floods,” said Mahir Binici, the IMF’s resident representative in Pakistan.
The team will evaluate whether Pakistan’s fiscal policies and emergency measures are adequate to cope with the crisis. Finance Minister Muhammad Aurangzeb said Pakistan has been in close contact with the IMF, which has “shown understanding” of the challenges triggered by the floods.
Read more: Flash floods cause Rs650m damage to Faisalabad irrigation infrastructure
Planning Minister Ahsan Iqbal separately called on the Fund to “help us mitigate the damages”. IMF’s board earlier approved a fresh $1.4 billion loan in May to strengthen Pakistan’s economic resilience to climate vulnerabilities and natural disasters, with further disbursements contingent on successful programme reviews.
Flood Relief & Reviews
The IMF has continously expressed “deep sorrow” and “deep condolences” over the loss of lives in Pakistan’s devastating floods and confirmed its review mission will also assess the disaster’s economic impact and the financial requirements for recovery and reconstruction.
In a separate move, the government has sought IMF approval for relief in electricity bills in flood-hit areas. PM has asked the Ministry of Finance to secure IMF consent for a waiver, and authorities requested a three-month deferral of bills, citing a similar measure in 2022. IMF officials have sought additional data from the Power Division.
The Ministry of Finance is also considering requesting flexibility in the IMF-mandated targets for the primary budget surplus and the provincial cash surplus, given the scale of the losses. Work is underway on a farmer support package modeled on the one introduced after the 2022 floods.
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