Pakistan is set to host an IMF delegation in March for a crucial review of its $7 billion loan program. The visit will also focus on climate financing, an area where Pakistan seeks additional financial support to combat environmental challenges.
Loan Review and Climate Financing Talks
The International Monetary Fund (IMF) will send a mission to Pakistan in early March to assess the country’s economic progress and negotiate the release of the next tranche of the loan. According to Maahir Binesi, IMF’s representative in Pakistan, discussions will also include technical aspects of climate financing, a priority for the government.
In a separate visit, an IMF technical team will arrive in late February to evaluate Pakistan’s ongoing climate financing initiatives. The mission will explore potential funding arrangements to help Pakistan manage climate-related disasters, which have significantly impacted the country in recent years.
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Pakistan’s Push for Climate Resilience Funding
Pakistan is among the most climate-vulnerable nations, according to the Global Climate Risk Index. The devastating 2022 floods, which displaced 33 million people and caused severe economic damage, highlighted the urgent need for climate adaptation and disaster management funding.
To address these challenges, Pakistan formally requested $1 billion from the IMF’s Resilience and Sustainability Trust (RST) in October last year. This fund, launched in 2022, provides long-term concessional financing for climate-related projects, including adaptation measures and the shift to clean energy.
According to Khurram Schehzad, Adviser to the Finance Minister, the IMF’s climate-focused mission will visit Islamabad from February 24 to 28. The team will conduct a review and discuss Pakistan’s eligibility for climate resilience financing.
Pakistan’s Economic Recovery Under IMF Program
Pakistan’s economy is slowly stabilizing under the $7 billion IMF Extended Fund Facility (EFF) secured last year. The upcoming loan review mission in March will evaluate Pakistan’s progress under the program and determine the disbursement of the next loan installment.
The government continues to face economic challenges, including high debt levels and inflation, making IMF funding critical for sustaining stability. With additional climate financing, Pakistan hopes to strengthen its environmental policies and boost its ability to respond to climate disasters.
Strengthening Financial and Climate Resilience
The IMF’s dual mission—one focused on the loan program and another on climate funding—reflects the growing importance of climate-related financial support. Pakistan’s government remains committed to securing funds for both economic stability and climate resilience.
With discussions set to take place in the coming weeks, Pakistan aims to strengthen its position in the global fight against climate change while ensuring sustained economic recovery.
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