Two More IMF Missions Due in Pakistan in the Coming Weeks

Islamabad: Pakistan is set to host two policy-level staff missions from the International Monetary Fund (IMF) in the coming weeks, in addition to a technical mission currently in the country focused on the judicial and regulatory systems.

Sources within Pakistan’s finance ministry revealed that the first mission will arrive on February 24 to discuss Pakistan’s request for over $1 billion in financing for climate resilience. This funding would come from the IMF’s Resilience and Sustainability Facility (RSF), which offers cheaper financing to countries committed to implementing reforms to adapt to climate change. The RSF provides financing with a 30-year repayment term, including a 10-year grace period, making it more affordable than the IMF’s Extended Fund Facility (EFF).

Pakistan formally requested the additional financing from the IMF in October 2024, aiming to secure $1.2 billion under the RSF to bolster its climate resilience efforts. The funding will support the country in addressing the growing impacts of climate catastrophes, particularly as Pakistan faces frequent extreme weather events.

The second mission is scheduled for the first week of March and will conduct the first biannual performance review of Pakistan’s $7 billion Extended Fund Facility (EFF). The EFF was agreed upon in 2019 as part of an IMF support program to help Pakistan stabilize its economy.

To meet the benchmarks set by the IMF, the Pakistani government has been working tirelessly to fulfill several pending commitments, including the approval of a new mechanism for the publication of assets and tax returns for senior government officials, which was recently approved by the federal cabinet.

Read More: PTI Sends Dossier & Letter to IMF Highlighting Governance Concerns and HR Violations

This development follows a meeting between Prime Minister Shehbaz Sharif and IMF Managing Director Kristalina Georgieva at the World Governments Summit in Dubai, where Sharif sought further support for energy sector reforms. The IMF has also advised Pakistan to invest 1% of its annual GDP, estimated at over Rs1.24 trillion, into climate resilience and adaptation reforms to better withstand future climate challenges.