Prime Minister Shehbaz Sharif on Tuesday urged the International Monetary Fund (IMF) to take into account the impact of this year’s floods in its upcoming review, while stressing that Pakistan is making steady progress in meeting targets set under the ongoing $7 billion Extended Fund Facility (EFF).
While assessments of the damages are ongoing, initial estimates suggest billions of dollars in damages to both rural and urban areas, particularly in Punjab and Sindh. Devastated crops also risk straining food supplies, exports and the country’s fragile economic recovery.
In a meeting with IMF Managing Director Kristalina Georgieva on the sidelines of the United Nations General Assembly session, Sharif appreciated the lender’s longstanding constructive partnership with Pakistan, stating it had further strengthened under her leadership.
He acknowledged the IMF’s timely support under various instruments, including the Stand-By Arrangement for $3 billion in FY 2024, followed by the EFF currently in place.
“Today, with the institution of deep-rooted structural reforms, Pakistan’s economy [is] showing positive signs of stabilization and is now moving towards recovery,” he said, appreciating the IMF support in guiding the government’s economic reform efforts.
Expressing her sympathy over the floods, the IMF managing director stressed on the importance of the damage assessment to underpin recovery priorities. She commended the prime minister’s commitment to pursuing sound macroeconomic policies, reiterating the IMF’s continued support as Pakistan advances necessary economic reforms to ensure sustainable long-term economic growth.
Also on Tuesday, the prime minister and his delegation met World Bank Group President Ajay Banga and apprised him of the government’s comprehensive reform agenda, encompassing resource mobilization, energy sector reforms, privatization and measures to build resilience against climate change.
He reiterated that the reform agenda had steered Pakistan towards macroeconomic stabilization, restored investor confidence and promoted sustainable and inclusive economic growth.