A technical team from the International Monetary Fund (IMF) has arrived in Islamabad to begin discussions on Pakistan’s request for over $1 billion in additional financing under the Resilience and Sustainability Facility (RSF).Â
This engagement, starting today [Monday], will focus on climate adaptation and sustainability measures, alongside preparations for a policy review of the country’s performance under the ongoing $7 billion Extended Fund Facility (EFF).
The IMF team will work closely with key ministries, including finance, planning, climate change, and petroleum, as well as the Federal Board of Revenue, provincial governments, and disaster management authorities. These discussions will span over three weeks, followed by a full policy review in early March.Â
According to IMF Resident Representative Mahir Binici, the mission will assess Pakistan’s commitment to climate-focused economic reforms and technical aspects of the RSF arrangement.
Government officials have prepared documentation for the Climate-Related Public Investment Management Assessment (C-PIMA), outlining future budget priorities in line with IMF and World Bank recommendations. The upcoming budget will emphasize climate-resilient infrastructure, strategic ongoing projects, and initiatives in underdeveloped districts, with additional scrutiny on high-impact foreign-funded projects.
Pakistan had formally requested $1.2 billion in RSF funding last year, seeking long-term financing to bolster climate resilience. The IMF has advised the government to allocate at least 1% of GDP annually—over Rs1.24 trillion—to climate adaptation efforts to mitigate economic disruptions caused by extreme weather events, particularly floods.
