WASHINGTON: Amid mounting fiscal and climate challenges, Pakistan is poised to appeal for international financial assistance and enhanced access to climate-related funding during the 2025 Spring Meetings of the World Bank Group and the International Monetary Fund (IMF), taking place in Washington, D.C.
Finance Minister Muhammad Aurangzeb arrived in the U.S. capital on Sunday at the head of a senior delegation that includes State Bank of Pakistan Governor Jameel Ahmed, Finance Secretary Imdad Ullah Bosal, and other top officials.
The meetings, which run from April 21 to April 26, gather finance ministers and central bank heads from 191 countries for high-level consultations on pressing global issues such as sovereign debt management, climate financing, and reforms in the global financial architecture.
Pakistan’s Dual Agenda: Economic Relief and Climate Finance
Pakistan is expected to use the platform to spotlight two central concerns: economic relief for its heavily indebted economy and greater inclusion in global climate finance flows.
The gathering offers a rare opportunity for countries like Pakistan to engage directly with major financial institutions and global policy stakeholders on these issues.
One key session that Islamabad is likely to prioritize is organized by the Coalition of Finance Ministers for Climate Action.
This forum will center on how nations can pursue sustainable development and climate goals while facing restricted fiscal environments—an issue particularly relevant for Pakistan, which is grappling with constrained public finances and recurring climate disasters.
This year’s Spring Meetings occur amid intensifying calls for a reimagined global financial system that better serves low- and middle-income economies.
Advocates—including civil society groups, faith-based organizations, and prominent figures like Pope Francis—have urged the IMF and World Bank to consider comprehensive debt relief measures.
They argue that unsustainable debt levels are preventing many developing countries from investing in long-term development and climate adaptation strategies.
Mounting Debt Pressures
Pakistan’s external debt continues to be a significant burden. According to the State Bank of Pakistan, the country faces repayment obligations of $30.6 billion in the near term.
The broader fiscal outlook remains tight, with both domestic and foreign liabilities putting pressure on available resources for public investment.
The World Bank’s 2024 International Debt Report, presented by Chief Economist Indermit Gill, underscored this issue, revealing that since 2022, private external creditors have withdrawn approximately $141 billion more from developing nations than they provided in fresh funding.
This capital outflow has exacerbated liquidity challenges for countries like Pakistan, weakening their economic resilience.
Urgent Need for Climate Adaptation Support
Pakistan is also aiming to leverage the meetings to push for greater access to climate financing.
As one of the countries most vulnerable to climate change, Pakistan has frequently faced floods, droughts, and extreme weather events that have devastated infrastructure and livelihoods.
Yet, its access to climate funds remains limited and insufficient to meet the scale of the challenge.
Estimates by the World Bank suggest that Pakistan will need between $7 billion and $14 billion annually just for climate adaptation.
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Other studies suggest that the total requirement—including mitigation efforts—could range from $30 billion to $60 billion each year.
In a recent boost, the IMF approved $1.3 billion in concessional funding through its Resilience and Sustainability Trust (RST).
These funds are intended to help Pakistan improve its climate resilience, support low-carbon transitions, and enhance its ability to manage shocks related to climate change. However, the country’s broader financing needs remain vast and unmet.
Status of IMF Program
On the economic front, Pakistan is currently implementing a $7 billion Extended Fund Facility (EFF), which was approved in September 2024 for a 37-month duration.
A staff-level agreement reached earlier this year allowed for the release of a $1 billion tranche, with future disbursements tied to periodic evaluations of the country’s economic performance.
The IMF has acknowledged Pakistan’s recent progress in several areas, including stabilizing the macroeconomic environment, lowering inflation, improving financial conditions, and strengthening its balance of payments.
Continued compliance with the IMF’s program conditions will be crucial to unlocking future funding and restoring investor confidence.
Looking Ahead
As the Spring Meetings proceed, Islamabad’s delegation will be focused on presenting a compelling case for international support—both in terms of debt relief and increased climate financing.
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With the country facing the dual pressures of a fragile economy and escalating climate risks, the outcomes of these engagements could significantly shape Pakistan’s fiscal and environmental policy trajectory over the coming years. Story by AHmed Mukhtar.
