The International Monetary Fund (IMF) has informed the government of Pakistan about its position regarding electricity bill relief for flood victims and a proposed aid package for farmers.
According to Finance Ministry sources, the IMF mission will carefully review budget expenditures and emergency measures before approving the next tranche of funding.
Relief for flood victims and farmers
Pakistan has sought IMF’s approval to postpone electricity bills of flood-affected households for three months. Additionally, an aid package has been proposed for farmers who have suffered massive losses due to the devastating floods.
Officials said the IMF will closely examine how these relief measures fit within Pakistan’s current budgetary framework.
IMF’s review of budget and flood expenses
According to Finance Ministry sources, the IMF mission will not only look at overall budget expenditures but also assess the scope of dealing with flood-related expenses. The Fund has stressed that any relief must align with Pakistan’s financial commitments under the ongoing loan program.
IMF officials have also expressed regret over the tragic loss of human lives caused by the floods.
Upcoming IMF mission visit
The IMF review mission is scheduled to arrive in Islamabad on September 25, where negotiations will take place for the release of the next $1 billion tranche of the $7 billion loan program.
Separately, IMF representative Julie Kozack, speaking to a British news agency, said the mission is also examining whether Pakistan’s 2026 budget is adequately prepared to address the financial challenges posed by natural disasters. She clarified that a new loan program will only be available once the current program is successfully completed.
On Saturday, the Pakistani government formally requested the International Monetary Fund (IMF) to defer electricity bills for residents of flood-affected areas for three months. The move comes on the instructions of Prime Minister Shehbaz Sharif, as millions across Punjab and Sindh reel from the devastation caused by recent floods.
According to Finance Ministry officials, the IMF has asked for detailed flood damage data before taking a decision. The Power Division has been directed to provide the necessary information this week.
The request seeks to temporarily suspend power bill payments in flood-hit regions, where residents have already lost homes, crops, and livestock.
Proposals under consideration
Officials said the government is reviewing multiple relief measures. These include extending support through the Benazir Income Support Program (BISP) and designing a separate flood relief package.
The government has already declared an agricultural emergency and is expected to announce a special farmers’ support package soon.
