IMF bars Pakistan’s federal government from funding flood-affected area projects

ISLAMABAD (International Desk) — The International Monetary Fund (IMF) has reportedly directed Pakistan’s federal government to halt funding for development schemes in flood-affected regions, insisting that provincial governments should finance rehabilitation efforts from their own resources.

The directive comes as IMF and Pakistani officials continue crucial talks in Islamabad as part of the ongoing economic review mission. Today’s meetings are said to be particularly significant, with sessions scheduled between the IMF delegation and Pakistan’s Ministries of Finance and Energy.

According to sources, the IMF mission will receive a fresh briefing on the damages caused by recent floods. Discussions are expected to cover the impact of the disaster on Pakistan’s economic growth, tax revenues, and development targets.

Officials say the meeting will also focus on revising fiscal and budgetary goals in light of flood-related losses. The IMF’s position reflects its concern over maintaining fiscal discipline while ensuring that provincial authorities bear the primary responsibility for rehabilitation spending in their respective areas.