According to a statement made by the IMF’s resident representative in Pakistan, Esther Perez Ruiz, the IMF said on Sunday that it would help flood relief and reconstruction activities in Pakistan under the current programme reached by the two parties.
The IMF expressed its “deep sadness” over the devastation caused by the recent floods in Pakistan and sympathies with the numerous flood victims in the statement.
According to the statement, “We will collaborate with members of the international community to support, under the current programme, the authorities’ relief and reconstruction efforts, particularly their ongoing effort to help those affected by the floods while ensuring sustainable policies and macroeconomic stability. Since June 14, 33 million people have been affected and more than 1,540 have died as a result of floods caused by unprecedented monsoon rains and glacial melt in the hilly north, causing $30 billion in damage.
Government officials and UN Secretary-General Antonio Guterres have both attributed the harsh weather that caused the flooding that buried roughly a third of the nation to climate change.
Additionally, they have had a negative effect on the market and economy, which were otherwise anticipated to improve following the IMF bailout package.
The combined seventh and eighth reviews of a loan facility for Pakistan were finished by the IMF’s Executive Board last month, allowing the country to receive $1.1 billion right away.
The payout “brings total purchases (money made available) for budget support under this arrangement to around $3.9 billion,” according to an official IMF statement.
This Extended Fund Facility (EFF) agreement, which was inked in July 2019, was intended to give Pakistan $6 billion over the course of 39 months. The programme was extended by the IMF board to the end of June 2023.
