Flood-Hit Pakistan Gets $451 Million from IMF
The sum will be disbursed immediately under the IMF’s Emergency Natural Disaster Assistance (ENDA) policy, which provides rapid and flexible financial assistance for countries with an urgent balance of payments need caused by a natural disaster.
“The $451 million will be provided directly to the country’s budget to be used on food, shelter, and health support for people directly affected by the floods,” said Adnan Mazarei, IMF mission chief for Pakistan. “This emergency assistance, which is being provided to the government without any conditions, comes in addition to the $8½ billion that the IMF has already disbursed to Pakistan under the Stand-By Arrangement.”
Deteriorating outlook
Pakistan’s economic outlook has deteriorated sharply as a result of the floods. The agriculture sector, which accounts for 21 percent of GDP and 45 percent of employment, has been hit particularly hard.
Initial and preliminary assessments suggest that real GDP growth is unlikely to exceed 2¾ percent...
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