ISLAMABAD: As part of its efforts to combat climate change, Pakistan is looking to secure $2 billion in IMF climate change funding to support its sustainable development initiatives.
According to local reports, Finance Minister Muhammad Aurangzeb who is landed in the Washington earlier today plans to make this request during the annual IMF meetings.
This request follows Pakistan’s earlier appeal for climate financing, which was not immediately approved by the IMF.
To bolster its case, Pakistan has implemented measures to enhance fiscal sustainability and increase revenue. These efforts include the passage of the FY24 budget, which projects a primary surplus of around 0.4% of GDP.
The government has also committed to maintaining a market-determined exchange rate and addressing inflation concerns.
Finance Minister Aurangzeb, along with the Secretary of Finance and State Bank officials, will attend the IMF meetings, which are set to conclude by October 26.
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Previously, on September 27, Pakistan requested an additional $1.5 billion from the IMF to address climate change impacts. During a meeting with IMF Managing Director Kristalina Georgieva, Prime Minister Shehbaz Sharif emphasized the need for urgent action to combat climate change in the country.
The loan will support Pakistan’s Climate Resilience and Sustainability Facility, aimed at fostering economic stability and sustainable development.
It’s worth noting that on September 25, the IMF Executive Board approved Pakistan’s 37-month Extended Fund Facility (EFF) arrangement, valued at approximately $7 billion. The EFF aims to support Pakistan’s economic stability and growth through policies that promote sustainable public finances, lower inflation, and strengthen external reserves.