Shehbaz Urges IMF to Focus on Flood Disaster in the Next Meeting

On Wednesday, Shehbaz Sharif reassured that Pakistan is steadily fulfilling its commitments under the International Monetary Fund (IMF) programme. However, he stressed that the IMF must also consider the devastating impact of recent floods in its upcoming review.

Shehbaz met with the IMF Managing Director:

The prime minister made these remarks during a meeting with Kristalina Georgieva, IMF Managing Director, 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 before the September 25 review of its $7 billion Extended Fund Facility (EFF), approved in May this year. This review will judge Pakistan’s performance for the March–June quarter of 2025.

Yet, nature has delivered a serious blow. Record floods have damaged both rural farmland and industrial hubs, causing losses worth billions of dollars. These disasters have hit food supplies, exports, and Pakistan’s fragile economic recovery.

The Press Information Department (PID) stated after the meeting, saying: “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.”

Pakistan’s economic outlook had been optimistic for 2026, with hopes of 4.2% growth driven by a rebound in farming and manufacturing under IMF support. Instead, heavy monsoon rains since June, worsened by dam releases from India, have submerged large parts of Punjab and Sindh. Officials warn the damage may even surpass the 2022 floods, when one-third of the country was under water, because this time both agriculture and manufacturing are suffering together.

According to GEOGLAM, a global crop monitoring group, nearly 220,000 hectares of rice fields were destroyed between August 1 and September 16. In Punjab alone, 1.8 million acres of farmland have been flooded, as reported by the Provincial Disaster Management Authority.

During the meeting, Georgieva expressed her sympathy to flood-affected people. The PID statement added, “She noted the importance of the damage assessment to underpin recovery priorities,” and praised PM Shehbaz’s commitment to sound economic policies. She also assured that the IMF would continue supporting Pakistan as it works on reforms for sustainable long-term growth.

PM Shehbaz, in turn, appreciated the IMF’s consistent support. He acknowledged the fund’s timely assistance through several programmes, including the $3bn Stand-By Arrangement in FY2024, the $7bn EFF, and the $1.4bn Resilience and Sustainability Facility (RSF).

He was quoted as saying, “Today, with the institution of deep-rooted structural reforms, Pakistan’s economy [is] showing positive signs of stabilisation and is now moving towards recovery.”

Meeting with World Bank President:

Separately, PM Shehbaz also met World Bank Group President Ajay Banga. He appreciated the bank’s role in supporting Pakistan. He briefed him about the government’s “comprehensive reform agenda, encompassing resource mobilisation, energy sector reforms, privatisation and measures to build resilience against climate change.”

The PID noted: “He reiterated that the reform agenda had steered Pakistan towards macroeconomic stabilisation, restored investor confidence and promoted sustainable and inclusive economic growth.”

PM Shehbaz further welcomed the World Bank’s new Country Partnership Framework (CPF), which will provide $40bn to Pakistan, and assured that the government would ensure effective implementation in close coordination with provincial administrations.

Banga praised Pakistan’s reform measures and confirmed the bank’s commitment to the country’s growth agenda. The press release added: “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 concluded by reaffirming their resolve to strengthen cooperation under the CPF to push forward Pakistan’s development goals.