Pakistan has informed the International Monetary Fund (IMF) that recent floods have inflicted economic losses worth Rs. 371 billion on the country’s infrastructure and agriculture sectors, forcing a downward revision in the GDP growth target for the current fiscal year.
The government had initially set a 4.2% real GDP growth target for FY26 in the budget approved by the National Economic Council (NEC) and Parliament. However, in light of the flood damages, the projection has now been cut to 3.9%, marking a 0.3 percentage point decline.
During talks with the IMF review mission, senior officials of the Ministry of Finance outlined external financing needs of $26 billion, of which $12 billion is expected to be rolled over.
Read More: Govt Announces Increase in Prices of Petrol and Diesel
Officials recalled that during the previous IMF review, China’s ambassador assured that all rollover and refinancing requirements for Pakistan would be met within the stipulated timeframe.
The government also informed the IMF that it plans to re-enter the international bond market this fiscal year, potentially launching a Eurobond in the last quarter (April–June 2026), subject to two conditions: a further cut in the US Federal Reserve’s policy rate and an improvement in Pakistan’s risk premium through at least a one-notch upgrade by global rating agencies.
On the flood damages, officials briefed the IMF that the calamity claimed 1,006 lives, injured 1,063 people, and damaged 12,569 houses nationwide. Infrastructure losses included 2,133 kilometers of roads, 248 bridges, 866 water systems, 1,098 schools, 128 healthcare facilities, and 100 public sector buildings. Agriculture also suffered severely, with 3.26 million acres of crops destroyed along with 10,991 livestock.
