PM Shehbaz Sharif urges IMF to consider flood impact on Pakistan economy

He made these remarks during a meeting with IMF Managing Director Kristalina Georgieva on the sidelines of the 80th Session of the United Nations General Assembly in New York. According to Dawn, Pakistan is on track to meet all seven Quantitative Performance Criteria (QPC) ahead of the September 25 review of the $7 billion Extended Fund Facility (EFF), approved in May this year.

A statement from the Press Information Department (PID) following the meeting noted: "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."

Dawn highlighted that the government had earlier projected 4.2 per cent growth in 2026, driven by a recovery in farming and manufacturing under the IMF bailout. However, record monsoon rains since June have inundated large parts of Punjab and Sindh, causing extensive losses to agriculture and industry.

The newspaper cited estimates from GEOGLAM, a global agricultural monitoring body, which reported at least 220,000 hectares of rice fields submerged between August 1 and September 16. Punjab's disaster management authority also confirmed that 1.8 million acres of farmland had been inundated.

According to the PID statement, Georgieva expressed sympathy for those affected by the disaster. "She noted the importance of the damage assessment to underpin recovery priorities," the statement said, adding that she praised PM Shehbaz's "commitment to pursuing sound macro-economic policies" and reiterated IMF's support for Pakistan's reform programme.

During the meeting, Shehbaz also acknowledged the IMF's continued partnership. He appreciated its assistance through the $3 billion Stand By Arrangement in FY 2024, the $7 billion EFF, and the $1.4 billion Resilience and Sustainability Facility (RSF). "Today, with the institution of deep-rooted structural reforms, Pakistan's economy [is] showing positive signs of stabilisation and is now moving towards recovery," he was quoted as saying by Dawn.

Separately, the prime minister met World Bank Group President Ajay Banga and lauded the bank's support for Pakistan, according to another PID statement. While appreciating Banga's leadership, he briefed him on 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.

Shehbaz also welcomed the new Country Partnership Framework (CPF), providing $40 billion for Pakistan, and pledged effective implementation in close coordination with provincial governments. The WB president, according to the release, "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 reaffirmed their resolve to strengthen cooperation under the CPF to advance Pakistan's development priorities, Dawn reported. (ANI)