Prime Minister Shehbaz Sharif on Wednesday stated that Pakistan was steadily meeting its International Monetary Fund (IMF) programme commitments, but urged the lender to take into account the recent flood damage in its upcoming review for the country.
The prime minister made the remarks during a meeting with Kristalina Georgieva, managing director of the IMF, on the sidelines of the 80th Session of the United Nations General Assembly in New York.
According to a Topline Securities’ report, Pakistan is on track to meet all seven Quantitative Performance Criteria (QPC) set by the IMF ahead of the September 25 review of its $7 billion Extended Fund Facility (EFF), which was approved in May this year. The review will assess Pakistan’s performance for the March–June quarter of 2025.
However, massive floods in the country have struck both the rural heartland and industrial centres for the first time in decades, causing billions of dollars in damage while straining food supplies, exports and a fragile economic recovery.
A statement issued by the Press Information Department (PID) following today’s meeting between PM Shehbaz and Georgieva said: “While emphasising that Pakistan was making steady progress towards meeting the various targets and commitments under the IMF programme, the prime minister said that the impact of the recent floods on Pakistan’s economy must be factored into the IMF’s review.”
The government had been optimistic about 2026, pencilling in 4.2 per cent growth on the back of a rebound in farming and manufacturing after the economy was stabilised under the IMF bailout. Instead, record monsoon rains since late June, amplified by dam releases from India, have submerged large swathes of Punjab and Sindh.
While waters have yet to recede in many districts, officials and analysts warn the hit could be deeper than in 2022, when a third of the country lay under water, due to dual shocks to agriculture and manufacturing.
A report from the agricultural monitoring initiative GEOGLAM estimates at least 220,000 hectares of rice fields flooded between August 1 and September 16. In Punjab, 1.8 million acres of farmland have been inundated, according to the Provincial Disaster Management Authority.
According to the PID statement, Georgieva expressed her sympathy to all people affected by the floods.
“She noted the importance of the damage assessment to underpin recovery priorities,” the statement said, adding that the official commended PM Shehbaz’s commitment to pursuing sound macro-economic policies and reiterated the IMF’s continued support as Pakistan advances the necessary economic reforms to ensure sustainable long-term economic growth.
During the meeting, the premier also appreciated the IMF’s longstanding constructive partnership with Pakistan.
He acknowledged the IMF’s timely support under various instruments, including the Stand By Arrangement for $3bn in FY 2024, followed by the EFF of $7bn and the Resilience and Sustainability Facility (RSF) of $1.4bn, per the statement.
“Today, with the institution of deep-rooted structural reforms, Pakistan’s economy [is] showing positive signs of stabilisation and is now moving towards recovery,” the premier was quoted as saying.
Premier meets World Bank president
Separately, PM Shehbaz also met World Bank (WB) Group President Ajay Banga and praised the bank’s support to the country, according to a separate press release issued by the PID.
While appreciating Banga’s leadership, the premier briefed him of the government’s “comprehensive reform agenda, encompassing resource mobilisation, energy sector reforms, privatisation and measures to build resilience against climate change”.
“He reiterated that the reform agenda had steered Pakistan towards macroeconomic stabilisation, restored investor confidence and promoted sustainable and inclusive economic growth,” the statement added.
PM Shehbaz also appreciated the new Country Partnership Framework (CPF), providing $40bn for Pakistan, reaffirming commitment to ensure its effective implementation in close coordination with provincial governments, it added.
The WB president appreciated Pakistan’s reform measures and reaffirmed commitment to the country’s development agenda. “He emphasised the bank’s readiness to extend continued support for advancing economic reforms and undertaking long-term initiatives on climate resilience under the new CPF,” the press release added.
It further stated, “Both sides reiterated their resolve to further strengthen cooperation under the CPF in order to advance Pakistan’s development priorities.”
With input from Reuters
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