NEW YORK: Prime Minister Muhammad Shehbaz Sharif has urged the International Monetary Fund (IMF) to take the impact of recent floods into account while reviewing Pakistan’s ongoing programme.
Meeting IMF Managing Director Kristalina Georgieva on the sidelines of the United Nations General Assembly, Shehbaz said Pakistan was making steady progress on reforms but the economic toll of the floods – which killed nearly 950 people, displaced millions, and inundated 1.8 million acres of farmland – must be reflected in the Fund’s assessment.
IMF programme and reform agenda
The Prime Minister appreciated the IMF’s longstanding constructive partnership with Pakistan, which under, Ms. Georgieva’s leadership, had strengthened further. He acknowledged the IMF’s timely support under various instruments, including the Stand By Arrangement for USD 3 billion in FY 2024 followed by the Extended Fund Facility (EFF) of USD 7 billion and Resilience & Sustainability Facility (RSF) of USD 1.4 billion.
While emphasizing that Pakistan was making steady progress towards meeting the various targets and commitments under the IMF program, the Prime Minister said that the “impact of the recent floods on Pakistan’s economy must be factored into the IMF’s review,”.
In March 2025, Pakistan and the International Monetary Fund (IMF) reached a staff-level agreement covering the first review of the 37-month, $7 billion Extended Fund Facility (EFF) and the approval of a new 28-month, $1.4 billion Resilience and Sustainability Facility (RSF). Endorsed by the IMF Executive Board in May, the agreements unlocked total disbursements of $2.3 billion, including about $1 billion under the EFF—bringing cumulative releases to $2 billion—and phased financing through the RSF, which Pakistan is accessing for the first time to strengthen climate resilience and reduce vulnerability to natural disasters.
IMF’s response
The IMF Managing Director expressed her sympathy to all people affected by the floods. She noted the importance of the damage assessment to underpin recovery priorities. The IMF Managing Director commended the Prime Minister’s commitment to pursuing sound macro-economic policies and reiterated the IMF’s continued support as Pakistan advances the necessary economic reforms to ensure sustainable long term economic growth.
Both sides reaffirmed their resolve to continue cooperation under the current programme to advance reforms while addressing the urgent humanitarian and economic challenges caused by the floods.
