NEW YORK: Prime Minister Shehbaz Sharif on Wednesday said Pakistan was steadily meeting its International Monetary Fund (IMF) programme commitments, but urged the lender to factor in the recent flood losses during its upcoming review of the country.
He made these remarks while meeting IMF Managing Director Kristalina Georgieva on the sidelines of the 80th Session of the United Nations General Assembly in New York.
Pakistan remains 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), approved in May this year. The review will evaluate Pakistan’s performance for the March–June quarter of 2025.
However, unprecedented floods have battered both rural heartlands and industrial centres, inflicting billions of dollars in losses, disrupting food supplies and exports, and straining a fragile economic recovery.
The Press Information Department (PID) issued a statement after the meeting, quoting the prime minister as saying: “Pakistan is making steady progress towards meeting IMF programme targets and commitments, but the IMF must factor in the impact of recent floods on our economy in its review.”
The government had projected 4.2 per cent growth in 2026, banking on a rebound in farming and manufacturing after stabilising the economy under the IMF bailout. Instead, record monsoon rains since late June—exacerbated by dam releases from India—submerged vast areas of Punjab and Sindh.
Floodwaters still cover many districts, and officials and analysts warn the damage could exceed the devastation of 2022, when one-third of the country lay underwater, because both agriculture and manufacturing have suffered simultaneous shocks.
The agricultural monitoring initiative GEOGLAM reported that between August 1 and September 16, floods submerged at least 220,000 hectares of rice fields. The Provincial Disaster Management Authority confirmed that 1.8 million acres of farmland in Punjab remain inundated.
According to the PID statement, Georgieva expressed sympathy for all flood-affected people. She stressed the importance of a thorough damage assessment to shape recovery priorities. She also praised PM Shehbaz’s commitment to sound macroeconomic policies and reaffirmed the IMF’s continued support as Pakistan pushes ahead with reforms to secure long-term sustainable growth.
During the meeting, PM Shehbaz appreciated the IMF’s longstanding constructive partnership with Pakistan. He acknowledged the lender’s timely support through multiple programmes, including the $3bn Stand-By Arrangement in FY 2024, the $7bn EFF, and the $1.4bn Resilience and Sustainability Facility (RSF).
“Through deep-rooted structural reforms, Pakistan’s economy is showing positive signs of stabilisation and moving towards recovery,” the prime minister said.
