ISLAMABAD, Sep 24: Pakistan Prime Minister Shehbaz Sharif on Wednesday urged the IMF to take into account the economic impact of the recent devastating floods in its upcoming review of the USD 7 billion loan.
Shehbaz said he met IMF chief Kristalina Georgieva on the sidelines of the 80th Session of the United Nations General Assembly in New York.
The prime minister in the meeting told the IMF chief that Pakistan had been making steady progress in the implementation of the global lender’s program, but floods impacted its economy.
“Appreciated IMF’s timely support through SBA, EFF & RSF, which helped Pakistan stabilise and move towards recovery. Pakistan is committed to deep reforms, however, recent devastating floods must factor into the IMF’s review,” Shehbaz said in a post on social media.
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, according to a statement by the Press Information Department.
Georgieva expressed her sympathy to all people affected by the floods, it said.
“She noted the importance of the damage assessment to underpin recovery priorities,” it said.
It added that the IMF 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 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.
Pakistan was cruising towards stability and growth with the government aiming to achieve 4.2 per cent GDP growth in the current fiscal year ending on June 30, 2026, but the record monsoon rains since late June wreaked havoc.
The losses have not been quantified so far, but they are expected to be huge enough to cause a dent in the economic recovery. The government is also paying the extra cost of rehabilitating about 5 million people affected by floods.
Separately, Shehbaz also met World Bank (WB) Group President Ajay Banga in New York and praised the bank’s support to the country, according to a separate press release issued by the PID.
He lauded the bank’s longstanding support for Pakistan, particularly during the COVID-19 pandemic and the devastating 2022 floods.
He apprised the World Bank President 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 has steered Pakistan towards macroeconomic stabilisation, restored investor confidence and promoted sustainable and inclusive economic growth.
The Prime Minister expressed appreciation for the World Bank’s new Country Partnership Framework (CPF) 2026–2035, under which the World Bank has committed an unprecedented 40 billion dollars for Pakistan.
He reaffirmed Pakistan’s commitment to ensuring its effective implementation in close coordination with provincial governments.
The President of the World Bank appreciated the reform measures being undertaken by Pakistan and reaffirmed the Bank’s commitment to Pakistan’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.
Both sides reiterated their resolve to further strengthen cooperation under the Country Partnership Framework in order to advance Pakistan’s development priorities. (PTI)
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