Islamabad, Feb 15: A high-level International Monetary Fund (IMF) delegation is set to arrive in Pakistan on February 24 to discuss a new climate-focused financial assistance program, aimed at tackling the economic consequences of climate change, according to sources.
Objective of the Climate Loan Program
Pakistan has been facing severe climate-related financial setbacks, with losses reaching $30 billion two years ago. In response, the IMF’s proposed loan program will focus on:
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- Mitigating climate change effects
- Supporting Pakistan’s environmental goals
- Assessing Pakistan’s climate policies and strategies
Talks between Pakistani officials and IMF representatives are expected to continue until early March, with discussions centered on Pakistan’s climate resilience and sustainable economic growth.
Shehbaz Sharif’s Meeting with IMF Leadership
This development follows a recent meeting between Prime Minister Shehbaz Sharif and IMF Managing Director Kristalina Georgieva in Dubai, where they discussed Pakistan’s economic stability and ongoing reform agenda. The discussion took place on the sidelines of the World Governments Summit (WGS) 2025 and emphasized Pakistan’s commitment to structural reforms and fiscal responsibility.
The Extended Fund Facility (EFF) has been a crucial element in stabilizing Pakistan’s economy, ensuring fiscal discipline, and promoting long-term recovery.
Pakistan’s Request for Additional Climate Funding
In a separate meeting on September 27, Pakistan formally requested an additional $1.5 billion loan from the IMF to combat climate change. This funding is expected to support Pakistan’s Climate Resilience and Sustainability Facility, which focuses on economic stability and sustainable development.
It’s worth noting that on September 25, the IMF Executive Board approved a $7 billion Extended Fund Facility (EFF) for Pakistan, spanning 37 months. The primary objectives of this program include:
- Ensuring sustainable public finances
- Reducing inflation
- Strengthening Pakistan’s foreign exchange reserves
With the IMF’s continued engagement, Pakistan is striving to achieve economic resilience while tackling climate challenges, ensuring long-term sustainability for future generations.
