Islamabad, October 5, 2025: Pakistan has initiated discussions with the visiting International Monetary Fund (IMF) delegation to review key economic targets under the ongoing loan program, following extensive losses caused by recent floods across several provinces.
Officials from the Ministry of Finance and Planning briefed the IMF team on the widespread impact of the floods, which have disrupted infrastructure, agriculture, and provincial fiscal performance.
According to government sources, the provinces most affected by the floods—Punjab, Sindh, Khyber Pakhtunkhwa, and Balochistan—have requested the IMF to reconsider previously agreed surplus budget targets. A total surplus of Rs1,464 billion had been set for the current fiscal year, but provincial authorities say these goals are no longer attainable due to disaster-related expenditures and revenue shortfalls.
Punjab, expected to achieve a Rs740 billion surplus, has informed the IMF that reconstruction spending has diverted funds from development programs. Sindh, which faced severe floods earlier this year, has also sought to revise its Rs370 billion target. Similarly, Khyber Pakhtunkhwa has conditioned its fiscal performance on the timely release of federal tax shares, while Balochistan has raised concerns over limited fiscal capacity.
IMF sources confirm that the issue of provincial surpluses and post-flood rehabilitation spending will be further discussed in policy-level talks next week. The review is expected to determine whether Pakistan can maintain its reform commitments while addressing the humanitarian and economic fallout of the recent floods.