The International Monetary Fund (IMF) on Saturday offered condolences over the loss of life from Pakistan’s devastating floods.
A senior IMF official said its upcoming Extended Fund Facility review mission will assess whether the country’s fiscal policies and emergency spending can address the crisis.
“The mission will assess whether the FY26 budget, its spending allocations and emergency provisions remain sufficiently agile to address the spending needs necessitated by the floods,” said Mahir Binici, the IMF’s resident representative in Pakistan.
The flash floods have killed 972 people so far, according to Pakistan’s National Disaster Management Authority.
The floods have destroyed crops, livestock and homes across Punjab province and are now pushing into Sindh, threatening fresh food inflation and deeper hardship in the cash-strapped South Asian nation.
Pakistan’s central bank is expected to keep its key rate at 11% on Monday, a Reuters poll showed, as policymakers weigh inflation risks from crop losses against a slowing economy.
An analyst estimated agricultural damage could shave up to 0.2 percentage points off growth this year, with reconstruction-led demand offering only partial offset.
In May, the IMF approved a $1.4 billion loan to Pakistan under its Resilience and Sustainability Facility while also completing the first review of a $7 billion programme under its Extended Fund Facility.
The IMF released about $1 billion in fresh funds under the $7 billion programme, bringing total disbursements so far to around $2.1 billion.
These moves follow strong policy implementation by Pakistan, including reforms to stabilise the economy amid global uncertainties.
The disbursement of funds is contingent upon successful completion of reviews under the EFF, the official said.
The Global Climate Risk Index places Pakistan among the countries most vulnerable to climate change.
(With inputs from Reuters)
 on Saturday offered condolences over the loss of life from Pakistan’s devastating floods.){kind=link}