Flood recovery plan key to continued financial support for Pakistan: IMF

Published
28

Pakistan’s timely finalisation of a recovery plan from devastating floods is essential to support discussions and continued financial support from multilateral and bilateral partners, the International Monetary Fund (IMF) said on Wednesday.

Pakistan was already battling a full-blown economic crisis, with decades-high inflation and dwindling foreign exchange reserves, when it was hit by floods earlier this year. It had entered a $6 billion IMF bailout programme in 2019, and the ninth review is currently pending.

“The timely finalisation of the recovery plan is essential to support the discussions, along with continuing financial support from multilateral and bilateral partners,” IMF’s resident representative in Islamabad, Esther Perez Ruiz, said in a message to Reuters.

She added that IMF staff is continuing discussions with authorities over policies to reprioritise and better target support towards humanitarian needs, while accelerating reform efforts to preserve economic and fiscal sustainability.

Devastating floods killed more than 1,700 people and inflicted billions of dollars of damage. The government’s estimates of the damage have varied from $10-40bn.

The finance ministry said last week that it would “expeditiously” finish technical engagement with the IMF as part of the ninth review of the programme, but a firm date for the review completion is yet to be announced.

The funds will be a lifeline for Pakistan, which is struggling to convince international markets and ratings agencies that it has the funds to meet external financing requirements, including debt repayments.

Pakistan has a $1bn international bond repayment due early next month. The State Bank of Pakistan’s foreign reserves stood at $7.9bn as of last week.

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Referendum talk
Updated 14 Nov, 2026

Referendum talk

Unless the PPP is deliberately using Sindh as a bargaining chip, it should issue a clarification with a clear, consistent position on new administrative units, not one tailored to protect its home turf.
Mineral wealth
Updated 14 Nov, 2026

Mineral wealth

Minerals should not be presented as a solution to Pakistan’s long-term economic difficulties. The aim should be to build an industrial base rather than export raw materials.
Late diagnosis
14 Nov, 2026

Late diagnosis

AS we mark World Diabetes Day today, Pakistan faces a troubling question: how many people are living with diabetes...
Climate challenges
Updated 13 Nov, 2026

Climate challenges

Pakistan cannot afford to confront its climate crises one disaster, one season and one international summit at a time.
Under fire
Updated 13 Nov, 2026

Under fire

KP police are increasingly vulnerable as they play a frontline role in ongoing operations against terrorists.
Used car imports
13 Nov, 2026

Used car imports

THE government’s effort to restrict used car imports appears to be faltering. So suggest the numbers. Despite...