The International Monetary Fund has asserted that its next review mission under the Extended Fund Facility will scrutinize closely the Pakistan expenditure on the flood relief and flexibility of its 2026 budget. The review will evaluate the effectiveness with which Islamabad has spent emergency funds following torrential monsoon attacks and flash floods that killed 972 people and devastated farmland in Punjab and Sindh.
Inflation of food prices and constrained government budgets have increased requirements on the government to strike a balance between disaster recovery and fiscal restraint. IMF has highlighted that its analysis will focus on disaster-related spending and how swiftly the budget structure of the country was able to adapt in the Pakistan situation. The mission will come across the officials later on this month.
