NEW YORK – September 24: Prime Minister Shehbaz Sharif has called on the International Monetary Fund (IMF) to consider the devastating impact of recent floods when assessing Pakistan’s economy in its next programme review.
The premier made the appeal 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 officials, Pakistan is currently on track to meet all seven performance benchmarks set by the IMF under the $7 billion Extended Fund Facility (EFF). However, record monsoon rains since late June have submerged large parts of Punjab and Sindh, disrupting agriculture, manufacturing, and exports. Damage estimates run into billions of dollars, raising fears that the economic setback could rival or even surpass the devastation of 2022.
Citing official data, nearly 1.8 million acres of farmland in Punjab and over 220,000 hectares of rice fields across the country have been destroyed. Food shortages, export delays, and inflationary pressures are now weighing heavily on the government’s growth outlook, which had earlier projected a 4.2% rebound in 2026.
A statement issued by the Prime Minister’s Office quoted Shehbaz Sharif as saying Pakistan was fulfilling its IMF commitments, but insisted that “the impact of the recent floods on Pakistan’s economy must be factored into the IMF’s review.”
Georgieva expressed solidarity with flood-affected communities and highlighted the importance of a comprehensive damage assessment to guide recovery efforts. She praised Pakistan’s commitment to reforms and assured that the IMF would continue supporting the country’s path toward stability.
The prime minister also acknowledged the Fund’s timely assistance in recent years, including a $3 billion Stand-By Arrangement in 2024, the $7 billion EFF approved in May 2025, and an additional $1.4 billion under the Resilience and Sustainability Facility.
On the same day, PM Shehbaz met with World Bank President Ajay Banga. In that meeting, he outlined Pakistan’s reform priorities from energy sector restructuring to climate resilience measures and welcomed the bank’s $40 billion Country Partnership Framework (CPF). The World Bank chief commended Islamabad’s progress and reaffirmed his institution’s support for long-term recovery and development goals.
Both sides reiterated their commitment to work closely under the CPF framework to strengthen Pakistan’s economic foundations while addressing the growing threat of climate change.
