IMF Team to Review Pakistan’s Flood Response and Fiscal Capacity

Sep 15, 2025 | Current Affairs, Economy

KAMALIA, Sept. 15 — As Pakistan battles the aftermath of devastating floods, Finance Minister Muhammad Aurangzeb confirmed that an International Monetary Fund (IMF) mission will arrive later this month to evaluate the country’s spending and emergency planning.

Key Highlights

  • Finance Minister Aurangzeb visited flood-hit Kamalia, reviewed relief efforts.
  • IMF mission expected by end-September to assess fiscal and disaster response.
  • PM Shehbaz has set a 100-day target for full rehabilitation of flood victims.
  • Farmers to get emergency support for next sowing season.
  • August electricity bills waived for flood-affected households.

Relief, Recovery, and Global Oversight

Aurangzeb said Pakistan would first use its own resources for immediate relief, but talks with the IMF were “a necessary step” to ensure international support. He noted that loss assessments are ongoing and critical for both IMF talks and other financial institutions.

The IMF, through its resident representative Mahir Binici, confirmed the mission will check if the FY26 budget and emergency provisions are agile enough to meet flood-related needs. This follows the Fund’s earlier approval of a $1.4 billion loan linked to climate resilience.

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Farmers and Families at the Heart

During his visit, the minister distributed aid and assured that farmers would get special packages to re-sow crops on time. The government also announced that August electricity bills for flood victims will be written off, with refunds arranged for those who already paid.

Looking Forward

Aurangzeb stressed that lessons must be drawn from past disasters, urging better planning and safer housing schemes. With global lenders watching closely and the clock ticking on rehabilitation, Pakistan faces both a challenge and an opportunity: to rebuild stronger and prove its resilience in the face of climate adversity.

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