The IMF’s Middle East and Central Asia Director, Mr. Masood Ahmed, offered this public statement yesterday:
“The floods which have hit Pakistan in recent weeks and brought suffering to millions of people will also pose a massive economic challenge to the people and government of Pakistan. The scale of the tragedy means that the country’s budget and macroeconomic prospects, which are being supported by an IMF financed program, will also need to be reviewed. In this context, we look forward to meeting with Pakistani government officials in Washington next week to evaluate the macroeconomic impact of the floods, assess the measures they are taking to address this impact, and discuss ways in which the IMF can assist Pakistan at this difficult juncture. As highlighted by IMF Managing Director Dominique Strauss-Kahn in his letter to President Asif Ali Zardari at the outset of this disaster, the IMF stands with Pakistan at this difficult time and will do its part to help the country.”
The World Bank and the IMF have arrested their current programs in order to redirect their respective energies to deal with the consequences of the relentless flood in Pakistan. The costs and subsequent consequences of the flood are unknown and will remain unknown for more than a month to come.
