Overview
- Islamabad briefed the mission on Rs371 billion in flood losses and lowered its FY26 growth target to 3.9%, while IMF officials signaled no major hit to growth or tax revenue based on initial inputs.
- Pakistan formally sought approval to launch a Prime Minister’s relief package from budgeted emergency funds, and the IMF requested a needs‑based damage and recovery assessment before consent.
- The IMF pressed for publication of the Governance and Corruption Diagnostic report and for a system by December 2025 requiring Grades 17–22 officers to declare assets, with enforcement mechanisms under discussion.
- The Fund set a 2031 deadline to eliminate power‑sector circular debt and is pushing measures to keep annual flow at zero, including a higher levy on captive power usage reported by government sources.
- Talks continue in early October on corrective steps to unlock roughly $1.0–1.2 billion, with revenue shortfalls near Rs1.2 trillion, provincial cash‑surplus commitments—complicated by Punjab’s stance—and $26 billion in external financing needs in focus.