Amid flood damage, Pakistan seeks IMF help

The federal government has launched efforts to secure maximum concessions from the International Monetary Fund (IMF) during the ongoing review talks, with Prime Minister Shehbaz Sharif directing authorities to negotiate relief in light of recent floods and heavy rains, sources said on Friday.

Sources said the government aims to avoid the imposition of a mini-budget by presenting alternative revenue measures and ensuring strict enforcement of existing tax steps to address IMF concerns. The Ministry of Finance is preparing to seek special relief by highlighting the financial strain on flood-hit households and the agricultural sector.

Officials plan to push for relaxation in electricity bills for affected families and concessions in the repayment of agricultural loans. Sources added that Pakistan will also request the IMF to revise down the Federal Board of Revenue’s (FBR) tax targets, citing revenue shortfalls linked to flood-related disruptions. A detailed briefing will be presented to the IMF team on the decline in tax collections and the overall fiscal impact of the natural disasters.

In addition, the government is expected to propose a slight downward revision in the GDP growth target, while urging the IMF to allow flexibility in its conditions so that new taxes are not imposed. The focus will remain on maintaining stability while protecting vulnerable segments of society from additional economic pressure. Through these measures, Pakistan hopes to secure much-needed relief and prevent further burden on citizens already struggling with rising costs and the aftermath of floods. The outcome of the talks will be critical in shaping the country’s economic policies for the coming months.