The loan program review mission will see whether the government’s fiscal policy and emergency measures can effectively deal with the crisis or not
Commerce reporter, Daily Dawn, Dawn TV, OKTV report
London: The International Monetary Fund (IMF) has expressed deep sorrow over the loss of life due to the devastating floods in the country and said that the loan program review mission will see whether the government’s fiscal policy and emergency measures can effectively deal with the crisis or not.
According to the British news agency Reuters, Mahir Bensi, the IMF representative in Pakistan, said that the mission will review whether the fiscal year 2026 budget, its allocated expenditures and emergency measures are flexible to meet the expenses required due to the floods.
According to the IMF representative, a detailed review of government spending for flood victims will be conducted, and a report will be prepared on relief, rehabilitation and budget priorities.
Mahir Bensi said that the mission will estimate the funds for rehabilitation and assistance after the floods. The IMF mission is expected to visit Pakistan later this month for a second review.
The floods have destroyed crops, livestock and homes across Punjab and are now moving towards Sindh, which is feared to increase food prices and further difficulties.
The State Bank of Pakistan is expected to keep its key interest rate unchanged at 11 percent at its meeting on Monday, as policymakers try to balance the risks of rising inflation from crop losses and a slowing economy.
One analyst estimated that agricultural losses could shave 0.2 percentage points off this year’s economic growth, while demand from reconstruction could only partially offset the shortfall.
The IMF board approved a new $1.4 billion loan in May to help Pakistan strengthen its economic resilience to climate vulnerabilities and natural disasters.
An official said the funding was conditional on the successful completion of reviews under the EFF.
According to the Global Climate Risk Index, Pakistan is among the countries in the world most vulnerable to the impacts of climate change.
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