Pakistan seeks IMF approval for PKR 389B flood relief plan

Pakistan is preparing to present a PKR 389 billion flood relief and recovery package to the International Monetary Fund (IMF), following the directives of Prime Minister Shehbaz Sharif, according to official sources familiar with the matter.

The federal government is expected to formally request the IMF to allow the disbursement of the Prime Minister’s Relief Package for flood-affected populations using emergency funds already allocated in the current budget. The request is likely to be presented during the ongoing second economic review discussions with the IMF.

Sources said the relief package will be financed through the PKR 389 billion in emergency funds set aside in the federal budget. The proposal comes as the IMF has asked Pakistani authorities to provide a detailed assessment report outlining the basic needs of flood-affected communities across various provinces.

The flood relief package forms part of Pakistan’s broader engagement with the IMF under the ongoing Extended Fund Facility (EFF), which aims to provide financial stability while supporting structural and social reforms. Approval of the proposed relief measures could prove critical to both humanitarian needs and the country’s fiscal outlook.

Damage estimates

Preliminary damage estimates submitted to the IMF include a projected loss of PKR 40 to 50 billion by Khyber Pakhtunkhwa and PKR 40 billion by Sindh. Punjab is also expected to submit its initial assessment of flood-related damages and relief needs in the coming days. Balochistan has not reported any major damage from the latest floods.

The provincial governments are reportedly planning to boost revenue collection to support their respective flood relief and recovery efforts, in coordination with the federal government.

On the fifth day of talks, sessions were held between the IMF and Pakistani officials on issues related to the National Finance Commission (NFC) and the economic impact of the recent floods.

The Ministry of Finance is also engaged in separate discussions with representatives from Sindh, Khyber Pakhtunkhwa, and Balochistan, according to sources.

The talks are continuing on the sixth day, with the IMF scheduled to meet senior officials from the Punjab government for a detailed briefing on the province’s flood recovery needs and fiscal position.