The International Monetary Fund expressed deep condolences

14/9/2025 5:54

The International Monetary Fund

expressed deep condolences on Saturday for the loss of life

caused by Pakistan's devastating floods and said its upcoming

Extended Fund Facility review mission will evaluate whether the

country's fiscal policies and emergency provisions can

effectively address the crisis, a senior IMF official said.



"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.



IMF's board



approved



a fresh $1.4 billion loan in May to help Pakistan

strengthen its economic resilience to climate vulnerabilities

and natural disasters.



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