The government of Pakistan is requesting an additional $2 billion from the International Monetary Fund (IMF) to tackle the country’s climate change challenges.
Finance Minister Muhammad Aurangzeb is set to present this request during the upcoming annual IMF meetings later this month.
This appeal follows an earlier climate financing request that the IMF did not approve.
Sources indicate that the government has taken steps to ensure fiscal sustainability and enhance revenue, including the recently passed FY24 budget, which aims for a primary surplus of around 0.4% of GDP. The administration has also pledged to uphold a market-driven exchange rate and curb inflation.
Minister Aurangzeb will attend the IMF meetings alongside the Secretary of Finance and officials from the State Bank, with the meetings scheduled to wrap up by October 26.
On September 27, Pakistan had sought an additional $1.5 billion loan from the IMF to address climate change impacts.
During a meeting with IMF Managing Director Kristalina Georgieva, Prime Minister Shehbaz Sharif emphasized the urgent need for action to confront climate-related challenges in the country.
The requested loan is intended to support Pakistan’s Climate Resilience and Sustainability Facility, which aims to foster economic stability and sustainable development. Notably, the IMF Executive Board approved Pakistan’s 37-month Extended Fund Facility (EFF) arrangement worth approximately $7 billion on September 25.
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