Pakistan Seeks IMF Relief After Floods Inflict Rs. 744 Billion in Economic Losses

Pakistan has informed the International Monetary Fund (IMF) that recent floods have caused an estimated Rs. 744 billion in economic losses, with the agriculture sector bearing 60% of the damage. The government is seeking adjustments to its IMF program targets to account for the disaster’s impact. Officials said the talks focused on adjusting the program’s primary budget surplus and provincial cash surplus targets to reflect the flood-related losses. The IMF had previously set a primary surplus target of Rs. 3.1 trillion, with an initial allowance for Rs. 500 billion in adjustments. Pakistan is now seeking relief for the full extent of the Rs. 744 billion in damages, reported Express Tribune. The floods, which inundated large swathes of the country and forced the evacuation of 6.5 million people, have sharply reduced the government’s growth outlook. Economic growth for the current fiscal year is now projected at 3.5%, down from the 4.2% target, though still above the World Bank’s latest 2.6% forecast. Punjab province suffered the most, with losses of Rs. 632 billion, followed by Khyber Pakhtunkhwa (Rs. 51.3 billion), Sindh (Rs. 32.2 billion), and Balochistan (Rs. 6.8 billion). The agriculture sector alone sustained Rs. 439 billion in losses, primarily in crops. Cotton output is expected to fall by up to 3.4 million bales, while rice and sugarcane production are also set to decline. Maize output is projected to drop 13% to 9.2 million tonnes. The industrial sector recorded Rs. 48 billion in losses, with its growth forecast revised to 4.1%. The services sector suffered Rs. 257 billion in damages, led by transport and storage, which lost Rs. 150 billion and saw its growth rate nearly halved. Infrastructure damage is extensive: 229,763 houses, 790 bridges, and 866 water systems were destroyed, while 2,811 kilometers of roads were damaged. The floods also disrupted 2,267 schools, 243 health facilities, and 129 public buildings across 70 districts. The disaster has claimed 1,037 lives and injured 1,067 people nationwide. Punjab and Khyber Pakhtunkhwa were the hardest hit in terms of casualties and property damage.