The government of Pakistan is making a bold move to tackle the impacts of climate change by seeking an additional $2 billion from the International Monetary Fund (IMF). Finance Minister Muhammad Aurangzeb will present this request during the upcoming annual IMF meetings, scheduled for later this month.
After the initial request for climate financing was not immediately approved by the IMF, Pakistan has taken steps to address fiscal sustainability and revenue mobilization. This includes passing the FY24 budget with a focus on achieving a primary surplus, ensuring a market-determined exchange rate, and reducing inflation.
The Finance Minister, along with officials from the State Bank, will be attending the IMF meetings, aiming to secure the additional funding by October 26. This move follows Pakistan’s earlier request for a $1.5 billion loan to combat climate change, highlighting the country’s commitment to promoting economic stability and sustainable development.
This latest development comes after the IMF Executive Board approved a 37-month Extended Fund Facility arrangement of about US$7 billion to support Pakistan’s economic stability and growth.