https://arab.news/wpdkh
- IMF resident rep says lender will check if Pakistan's budget, emergency plans can meet flood needs
- Prime Minister Sharif halts August power bills in flood-hit areas, promises more relief after IMF talks
KARACHI: The top International Monetary Fund (IMF) official in Pakistan said on Saturday his organization is assessing flood damage and will use its next review mission to evaluate appropriate policy responses to support affected people and strengthen national resilience.
The flooding during the monsoon season that began in late June has killed 972 people across Pakistan, according to the National Disaster Management Authority. The northwestern province of Khyber Pakhtunkhwa has been the hardest hit, with 504 fatalities, many from severe cloudbursts in mid-August.
Meanwhile, in eastern Punjab, swollen rivers including the Ravi, Chenab and Sutlej overflowed after unprecedented rains upstream in India, submerging settlements, destroying crops and leading to more than 100 deaths.
Over 2.5 million people have been rescued, and about 4,700 settlements inundated. The government has signaled relief initiatives for victims but must discuss them with the IMF due to its $7 billion Extended Fund Facility (EFF) agreement secured last year.
“We extend our heartfelt condolences to the people of Pakistan as they endure the devastating floods," said Mahir Binici, Resident Representative of the IMF in Pakistan. "We are deeply saddened by the tragic loss of life.”
“An assessment of the flood damage caused by torrential monsoon rains is still ongoing, as the situation continues to evolve,” he continued. “The upcoming EFF review mission provides an opportunity to discuss the appropriate policy response to support flood-affected populations and protect the most vulnerable."
Binici also noted that both the EFF and the IMF’s Resilience and Sustainability Facility (RSF) provide frameworks crucial for external and financial stability amid these natural calamities.
The RSF, approved in May, offers Pakistan around $1.4 billion to help build economic resilience against climate vulnerabilities and disasters, though its disbursement depends on successful reviews under the EFF.
The IMF official noted that the mission will assess whether the budget approved by Pakistan in June, along with its spending allocations and emergency provisions, remain sufficiently agile to address the spending needs necessitated by the floods.
RELIEF FOR FLOOD-HIT FAMILIES
Separately, Prime Minister Shehbaz Sharif announced immediate relief for households in flood-hit districts, ordering power distribution companies to suspend collection of August electricity bills and adjust any payments already received in the next billing cycle.
Chairing a special meeting in Islamabad earlier in the day, Sharif said the measure was aimed at giving families breathing space as they recover from weeks of torrential rains and flash floods.
“We are making every possible effort in this difficult time to ease people’s suffering,” he said, according to a statement circulated by his office.
The prime minister added a comprehensive electricity-bill relief package for the affected areas would be finalized after consultations with the IMF, underscoring the need to align emergency spending with Pakistan’s ongoing bailout program.
Sharif also said that federal and provincial agencies are working on rescue, relief and rehabilitation.
“We will not rest until every flood victim returns home,” he added.