Prime Minister Shehbaz Sharif said on Wednesday that Pakistan is steadily advancing towards meeting the targets of the International Monetary Fund (IMF) programme, but emphasised that the economic fallout from recent floods must be considered in the Fund's forthcoming review.

Massive floods across the country have struck both the rural heartland and industrial centres for the first time in decades, causing billions of dollars in damage while straining food supplies, exports and a fragile economic recovery.

Record monsoon rains since late June, amplified by dam releases from India, have submerged large swathes of Punjab and Sindh, the two most populous and economically vital provinces.

Over 1000 people have been killed since June 26, the National Disaster Management Authority said, while over 2.5 million people have been evacuated in Punjab and Sindh.

The prime minister, in a meeting with IMF Managing Director Kristalina Georgieva, on the sidelines of UNGA, appreciated the IMF’s longstanding constructive partnership with Pakistan, which had further strengthened under the incumbent chief's leadership.

He acknowledged the IMF's timely support under various instruments, including the Stand-By Arrangement for $3 billion in FY 2024, followed by the Extended Fund Facility (EFF) of $7 billion.

"Today, with the institution of deep-rooted structural reforms, Pakistan's economy [is] showing positive signs of stabilisation and is now moving towards recovery," said PM Shehbaz and appreciated the IMF's support for being instrumental in guiding the government's economic reform efforts.

The IMF Managing Director expressed her sympathy to all people affected by the floods and noted the importance of the damage assessment to underpin recovery priorities.

The IMF chief commended the prime minister's commitment to pursuing sound macro-economic policies and reiterated the IMF's continued support as Pakistan advances the necessary economic reforms to ensure sustainable long-term economic growth.

Meanwhile, in a meeting with World Bank Group President Ajay Banga, PM Shehbaz apprised him of the government’s comprehensive reform agenda, encompassing resource mobilisation, energy sector reforms, privatisation and measures to build resilience against climate change.

He reiterated that the reform agenda had steered Pakistan towards macroeconomic stabilisation, restored investor confidence and promoted sustainable and inclusive economic growth.

— With additional input from Reuters