The government of Pakistan is seeking an additional $2 billion from the International Monetary Fund (IMF) to address the country’s climate change challenges.
Finance Minister Muhammad Aurangzeb will present this request during the annual IMF meetings scheduled for later this month.
This move follows Pakistan’s earlier request for climate financing, which was not approved by the IMF.
Sources indicated that the government has implemented measures aimed at ensuring fiscal sustainability and increasing revenue, including the recently passed FY24 budget, which targets a primary surplus of approximately 0.4% of GDP. The administration has also committed to maintaining a market-determined exchange rate and reducing inflation.
Minister Aurangzeb will attend the IMF meetings alongside the Secretary of Finance and officials from the State Bank. These meetings are set to conclude by October 26.
On September 27, Pakistan requested an additional $1.5 billion loan from the IMF to combat the impacts of climate change.
During a meeting with IMF Managing Director Kristalina Georgieva, Prime Minister Shehbaz Sharif underscored the urgent need for action to address climate issues in the country.
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The requested loan aims to support Pakistan’s Climate Resilience and Sustainability Facility, which seeks to promote economic stability and sustainable development. Notably, the IMF Executive Board approved Pakistan’s 37-month Extended Fund Facility (EFF) arrangement of about $7 billion on September 25.
