Middle East & Central Asia News
LAST UPDATE: September 15, 2025
Finance minister says Pakistan closely coordinating with IMF on flood recovery
Pakistan’s Finance Minister Muhammad Aurangzeb says the government is coordinating closely with the IMF to address disaster relief and recovery from devastating floods. An IMF mission is expected to review Pakistan’s fiscal response, particularly budget agility and emergency spending. (Reuters)
Insight
Coordination with IMF is critical for Pakistan’s financial credibility. Flood damage threatens food supply, inflation, and economic growth; getting donor/IMF support will be essential to mitigate social and economic fallout.
Pakistan holds key policy rate for third straight time as floods stoke inflation fears
Pakistan’s central bank held its key interest rate at 11% for the third consecutive meeting, citing risks from flooding-induced supply disruptions and inflation pressures, especially in food markets. —
Insight
The decision underscores the tightrope for the central bank: balancing inflation control vs growth and relief in disaster areas. Greens in monetary easing are limited until inflation and supply side shocks moderate.
