A technical mission of the International Monetary Fund (IMF) on Monday initiated crucial discussions on Pakistan’s request for $1.5 billion in additional financing to support climate change initiatives.
The talks are being conducted under the IMF’s Resilience and Sustainability Facility (RSF), which offers long-term funding for climate resilience projects. The IMF team is engaging with key federal ministries, including Planning, Finance, Climate Change, Petroleum, and Water Resources, along with the Federal Board of Revenue (FBR), disaster management authorities, and provincial governments.
Official sources confirmed that meetings were held with representatives from the federal government, as well as the Khyber Pakhtunkhwa and Sindh administrations, while Punjab and Balochistan officials are scheduled to meet the IMF team today (Tuesday). Discussions have so far covered green budgeting, climate-related spending, financial tracking, and reporting mechanisms.
A major point of negotiation is the possible introduction of a carbon levy in the fiscal year 2025-26, with initial proposals set for deliberation in the next phase of talks. The discussions, which will continue until February 28, will also address policies regarding electric vehicles, climate-related subsidies, and broader environmental initiatives.
