The federal government is reportedly considering the introduction of a flood levy to support the reconstruction of areas devastated by recent floods, following recommendations from the International Monetary Fund (IMF), sources revealed. According to Finance Ministry officials, the levy may be enforced through a presidential ordinance. The primary purpose of this measure is to raise funds for rehabilitation and rebuilding efforts in flood-affected regions across the country. Sources suggest that the proposed levy would be targeted at imported luxury and non-essential goods, ensuring minimal impact on the general public. Government officials emphasized that Pakistan intends to finance the recovery operations through domestic resources, avoiding reliance on foreign loans or international aid. Both federal and provincial governments are expected to play a role in funding the restoration projects, while the proposed flood levy would act as an additional revenue channel to bolster reconstruction efforts. According to an initial report, recent floods caused loss worth Rs822 billion across Pakistan, severely affecting the country’s agriculture and infrastructure sectors. The report states that the government has requested assistance from development partners to determine the actual scale of damages caused by the floods. The disaster has affected nearly 6.5 million people across 70 districts nationwide, with Punjab being the worst-hit province due to river overflows in the Sutlej, Chenab, and Ravi. In Punjab alone, 27 districts suffered extensive damage to agricultural land and residential properties. Across the country, a total of 229,763 houses were damaged, while 1,037 people lost their lives and 1,067 were injured in the floods. The IMF has also cautioned that the recent monsoon floods have seriously hurt Pakistan’s economy. Growth may slow, inflation may rise, and the current account deficit could increase.
Govt considering new flood levy to fund reconstruction of affected areas
