New York (TDI): Prime Minister Shehbaz Sharif on Wednesday said Pakistan was on track to meet its commitments under the International Monetary Fund’s (IMF) program but called on the lender to take into account the economic fallout of recent floods when assessing the country’s performance.
The prime minister made the appeal during a meeting with IMF Managing Director Kristalina Georgieva on the sidelines of the 80th session of the UN General Assembly.
According to the Prime Minister’s Office, Mr Shehbaz assured Georgieva that Islamabad was implementing reforms under the $7 billion Extended Fund Facility (EFF), approved in May this year. He stressed, however, that the natural disaster had strained Pakistan’s economy and should be considered in the Fund’s upcoming review.
Pakistan is expected to meet all seven quantitative performance criteria (QPCs) for the second semi-annual review of the program. The IMF mission is due in Islamabad on Sept 25 to evaluate progress during the first half of 2025, including targets set for the March–June quarter.
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A government statement quoted the premier as saying, “Pakistan is making steady progress on its IMF commitments, but the impact of floods must also be factored into the review.”
The IMF program is viewed as critical for Pakistan to maintain external financing and keep foreign exchange reserves at a sustainable level. Islamabad has been under pressure to adhere to strict fiscal discipline, while also managing public discontent over high inflation and energy costs.
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Officials say the floods have added billions of dollars in losses to an already fragile economy, damaging crops, infrastructure and livelihoods in several provinces. The government is seeking international partners, including the IMF, to show flexibility in supporting reconstruction and relief.
