The government of Pakistan is seeking an additional $2 billion from the International Monetary Fund (IMF) to address the impacts of climate change, as reported by ARY News. According to sources, Finance Minister Muhammad Aurangzeb will present this request at the upcoming annual IMF meetings scheduled for later this month. This development follows Pakistan’s earlier request for climate financing, which was not immediately approved by the IMF.
Sources indicate that Pakistan has taken steps to enhance fiscal sustainability and mobilize revenue, including the passage of the FY24 budget, which targets a primary surplus of approximately 0.4 percent of GDP. The government has also committed to maintaining a market-determined exchange rate and reducing inflation.
The Finance Minister will attend the IMF meetings alongside the Secretary of Finance and officials from the State Bank. These meetings are expected to conclude by October 26.
Earlier, on September 27, Pakistan had requested an additional $1.5 billion loan from the IMF to combat the effects of climate change. During a meeting with IMF Managing Director Kristalina Georgieva, Prime Minister Shehbaz Sharif emphasized the urgent need for action to address climate change in Pakistan. This loan will support Pakistan’s Climate Resilience and Sustainability Facility, which aims to promote economic stability and sustainable development.
It is worth noting that on September 25, the IMF Executive Board approved Pakistan’s 37-month Extended Fund Facility (EFF) arrangement, amounting to about $7 billion. This arrangement aims to support Pakistan’s economic stability and growth, focusing on sustainable public finances, reduced inflation, and strengthened external buffers.
