ISLAMABAD: The International Monetary Fund (IMF) expressed deep condolences over the tragic loss of lives caused by the recent devastating floods in Pakistan and reasserted its commitment to reviewing the government’s fiscal and emergency response measures during its upcoming Extended Fund Facility (EFF) review mission.
In this sense, Mahir Binici, the IMF’s Resident Representative in Pakistan, said the mission will carefully evaluate whether the Federal Budget for FY26, including its spending allocations and emergency provisions, is adequately flexible to meet the extraordinary challenges created by the floods.
In this regard, the National Disaster Management Authority (NDMA), at least 972 people have lost their lives in flash floods that have swept through large parts of the country. The calamity has destroyed crops, livestock, and homes across Punjab and is now moving into Sindh, raising fears of food shortages, inflationary pressures, and further hardship for the affected communities.
Furthermore, the State Bank of Pakistan (SBP) is expected to maintain its policy rate at 11 per cent in the upcoming monetary policy announcement as per the Dawn.
The IMF had earlier approved a $1.4 billion loan in May to support Pakistan’s economic resilience against climate-related vulnerabilities and natural disasters.
Moreover, the disbursement of these funds remains tied to the successful completion of reviews under the EFF program, IMF officials clarified.
In addition, Pakistan remains among the countries most at risk from climate change, as highlighted by the Global Climate Risk Index.
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The floods have once again underscored the urgent need for sustainable climate adaptation and resilience strategies, alongside strong coordination between international partners and domestic institutions.
