The International Monetary Fund (IMF) on Monday urged Pakistan’s provincial governments to fund rehabilitation schemes in flood-hit areas from their own resources, cautioning that such spending must not erode the fiscal surplus targets agreed with the Fund, sources said.
According to official sources, the directive came during ongoing economic review talks between Pakistan and the IMF, where both sides discussed the impact of recent floods on growth, tax collection, and development goals.
Officials briefed the IMF that the calamity had severely disrupted agriculture and infrastructure, prompting a reassessment of key budgetary targets.
The Fund was also updated on efforts to realign fiscal priorities and ensure coordination between federal and provincial governments on post-disaster recovery.
The IMF held detailed talks with the Ministry of Energy on power sector reforms, focusing on reducing line losses, improving bill recovery, and addressing inefficiencies in distribution companies.
Pakistani officials also briefed the IMF on the newly approved five-year National Tariff Policy (2025–2030). The policy envisages a gradual reduction in import duties from 2025 to 2030 to boost exports and attract investment, sources said.
The IMF delegation was also briefed on the Reko Diq copper-and-gold project.
Officials said the total project cost has reportedly risen from $4.3 billion to $7.72 billion, and that the first phase is expected to yield about 200,000 metric tonnes of copper annually.