A four-member technical team from the International Monetary Fund (IMF) has arrived in Pakistan to engage in discussions on climate financing and green budgeting. The visit, scheduled from February 24 to 28, aims to review Pakistan’s climate funding strategies and assess ongoing initiatives related to climate change resilience.
This mission is part of Pakistan’s efforts to secure around $1 billion in funding from the IMF’s Resilience and Sustainability Trust, which was formally requested in October 2023 to address the country’s vulnerability to climate change.
Finance Minister Muhammad Aurangzeb has confirmed that a technical mission of the International Monetary Fund (IMF) has reached Pakistan to hold talks on climate financing during its three-day stay.
Speaking to the media on Monday, the finance czar further confirmed that a second IMF team would visit next month to discuss matters pertaining to the country’s $7 billion Extended Fund Facility (EFF).
The federal minister’s confirmation follows a statement from IMF’s resident chief, Mahir Binici, who revealed that two missions were scheduled to visit Islamabad. The first delegation would engage in discussions on the authorities’ request for assistance under a Resilience and Sustainability Facility (RSF) arrangement, while the second would assess the country’s progress under the latest bailout program.
Pakistan is highly vulnerable to climate change, as evidenced by the devastating floods in 2022, which affected millions and caused significant economic losses. The country’s economic recovery is ongoing under a $7 billion IMF Extended Fund Facility, with another IMF mission scheduled for early March to review this program.
There is a growing emphasis on structured climate financing in Pakistan, with calls for innovative mechanisms to mobilize resources effectively. This includes discussions on bridging the estimated $340 billion funding gap required for sustainability and implementing policies like the Electric Vehicle (EV) Policy to reduce emissions.