IMF team to assess flood spending later this month

• Aurangzeb says PM has set 100-day target for full rehabilitation of victims
• Promises farmers emergency support packages for next sowing season
• Says loss assessment surveys likely to be completed within 15 days

TOBA TEK SINGH: As Pakistan grapples with devastating floods, a senior Inte­rnational Monetary Fund official confirmed an upcoming mission will evaluate if the country’s financial and emergency plans are adequate to handle the crisis, shortly after the finance minister signalled talks with the lender for relief.

An IMF team is expected in Pakistan by the end of the month for a review mission, Federal Minister for Finance and Reve­nue Muhammad Aur­angzeb said on Sunday, stressing that discussing flood-related financial needs with the IMF was a necessary step.

“There is nothing wrong with asking the IMF about the relief, because we are in the fund programme,” Mr Aurangzeb said during a visit to flood-affected areas in Kamalia. “The IMF responded very responsibly and the prime minister announced the relief.”

The minister’s comments came as damage assessments from the catastrophic floods, which have killed at least 972 people, are underway across the nation.

“Damage assessments are currently under way, and these are very important — not only for our talks with the IMF but also with other financial organisations,” he said.

While Pakistan plans a comprehensive discussion with the IMF, Aurangzeb noted that the cabinet has decided to first utilise the nation’s own resources to provide immediate aid to the millions affected.

“We have resources available for now. When the IMF team arrives, we will hold a comprehensive discussion with them about what we need at this stage, especially concerning rehabilitation and reconstruction,” he added.

Key relief measures already announced include a decision that flood victims will not be charged for their August electricity bills, with adjustments made for those who have already paid. Prime Minister Shehbaz Sharif has also set a 100-day deadline for the rehabilitation of all flood victims.

The government is also closely monitoring the economic fallout, including inflation. “Since international oil prices are falling, imported inflation is not very high,” Mr Aurangzeb said.

However, he acknowledged a discrepancy between farmers’ reports of severe crop damage and initial government assessments.

He assured that the government would not permit hoarding or price gouging and was considering special packages for farmers to help them sow their next crops on time, adding that farmers and the general public would be facilitated in every possible way so they could resume their livelihoods at the earliest.

He said the government was considering to announce special packages for farmers to enable them to sow their next crops on time.

He pointed out that both a climate emergency and an agriculture emergency had already been declared to protect agricultural productivity and ensure timely rehabilitation of the flood victims

During his visit, Mr Aurangzeb distributed aid to affected families and emphasised the need for better future planning to avoid similar devastation.

“We must learn lessons from past floods and improve planning to avoid such devastation in the future,” he remarked, adding that the location of housing schemes needed serious reconsideration.

IMF to review fiscal agility

Confirming the upcoming mission under the country’s existing Extended Fund Facility (EFF) program, the IMF’s resident representative in Pakistan, Mahir Binici, said the review would be critical in assessing the country’s financial capacity to respond to the disaster.

“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,” Binici said in a statement on Saturday.

In May, the IMF’s board approved a $1.4 billion loan to help Pakistan strengthen its economic resilience to climate vulnerabilities, but the disbursement of funds is contingent on the successful completion of reviews under the EFF.

With input from Reuters

Published in Brackly News, September 15th, 2025