PM Shehbaz Urges IMF to Factor Flood Impact in Upcoming Review

New York, September 24, 2025 – Prime Minister Shehbaz Sharif has called on the International Monetary Fund (IMF) to take into account the devastating impact of recent floods while reviewing Pakistan’s economic performance under the ongoing Extended Fund Facility (EFF).

• The premier made the appeal during a meeting with IMF Managing Director Kristalina Georgieva on the sidelines of the 80th UN General Assembly session in New York.
• Pakistan is set to undergo the second semi-annual review of the $7 billion EFF programme, with the IMF team due in Islamabad on September 25, 2025.
• The review will assess Pakistan’s compliance with seven key economic targets covering the March–June 2025 quarter, paving the way for a potential $1 billion tranche.

Appreciates IMF’s Partnership

• PM Shehbaz lauded the IMF’s consistent support, noting Pakistan had already benefitted from the $3bn Stand-By Arrangement (FY 2024), followed by the EFF ($7bn) and the Resilience & Sustainability Facility ($1.4bn).
• He underlined that Pakistan’s economy, guided by structural reforms, was showing signs of stability and recovery, but stressed that the flood crisis posed fresh risks to growth and inflation.
• “While Pakistan remains committed to meeting programme benchmarks, the flood losses must be considered in the IMF’s upcoming review,” he said.

IMF Response

• Kristalina Georgieva expressed sympathy for those affected by the floods and highlighted the importance of damage assessment for recovery planning.
• She commended Pakistan’s commitment to sound economic reforms and reiterated the Fund’s support for long-term sustainable growth.

PM Meets World Bank President

In another high-level engagement, PM Shehbaz also met World Bank President Ajay Banga.

• He praised the Bank’s long-standing assistance, particularly during COVID-19 and the 2022 floods.
• The premier welcomed the Bank’s new Country Partnership Framework (2026–2035), which commits an unprecedented $40 billion for Pakistan.
• PM Shehbaz briefed the president on reforms in resource mobilisation, energy, privatisation, and climate resilience, describing them as key drivers of investor confidence and inclusive growth.
• Ajay Banga reaffirmed the World Bank’s support, appreciating Pakistan’s progress on economic stabilisation.

The IMF’s September 25 review is viewed as critical for Pakistan, as successful completion would unlock the next loan tranche, reinforcing confidence in the government’s reform agenda. However, flood-related inflation and recovery costs remain pressing concerns.

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