Pakistan Seeks Relief from IMF Amid Flood Challenges
September 19, 2025
The government is preparing to press for major relief measures during the upcoming negotiations with the International Monetary Fund (IMF), with Prime Minister Shehbaz Sharif instructing officials to secure the maximum possible concessions.
No Mini-Budget Planned
According to sources, the government is determined to avoid a mini-budget. Instead, it plans to propose alternative revenue measures, focusing on stricter enforcement of existing tax laws rather than introducing new levies.
Flood-Related Relief Measures
The Finance Ministry is expected to request IMF concessions in light of the recent flood damages. Proposed relief measures include:
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Electricity bill relaxation for flood-affected households in September
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Loan repayment relief for the agricultural sector
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Flexibility in meeting fiscal targets due to natural disaster impacts
Adjustments in Targets
Officials will also push for:
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A downward revision of the Federal Board of Revenue’s (FBR) tax collection target
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Adjustments to reflect the loss in revenue caused by the floods
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Discussions on slightly lowering Pakistan’s growth target for the fiscal year
Key Objective
The government’s top priority is to protect citizens from additional taxes while ensuring that flood-related expenditures are acknowledged during the IMF review.
These negotiations will be crucial in shaping Pakistan’s economic outlook for the coming months, as authorities balance fiscal discipline with urgent relief needs for disaster-hit communities.
