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Pakistan Strengthens Response: IMF Reviews Budget Amid Flood Recovery

Islamabad — The International Monetary Fund (IMF) has offered its heartfelt condolences for the lives lost in Pakistan’s recent floods and is now stepping up to help ensure the country is ready for both rescue and recovery.

IMF’s upcoming Extended Fund Facility (EFF) review mission will work closely with the government to assess how well the FY26 budget, spending allocations, and emergency measures are positioned to meet urgent needs. The goal is to make sure Pakistan’s financial and policy responses are agile, effective and on track to support those affected.

So far, the floods have claimed 972 lives and damaged crops, livestock, and homes across Punjab, now reaching into Sindh. Despite these challenges, the government is responding with relief efforts while planning ahead to safeguard food supplies and manage inflation risks.

As part of ongoing economic support, Pakistan had secured a $1.4 billion IMF loan in May to build resilience against climate shocks and disasters. The disbursement of further funds depends on successful review of policies and performance under the EFF.

In facing this crisis, Pakistan is proving its resolve — making policy adjustments, engaging with international partners, and maintaining focus on relief and reconstruction. These steps signal strength and promise a pathway toward recovery and long-term resilience

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