Pakistan to get $200 million climate financing under IMF Resilience and Sustainability Facility, says finance minister 

Finance Minister Muhammad Aurangzeb said that Pakistan is likely to receive $200 million from the International Monetary Fund (IMF) under the Resilience and Sustainability Facility (RSF), with the IMF Executive Board scheduled to meet on Friday.

Speaking at the Breathe Pakistan International Climate Change Conference 2026, the finance minister said the government was shifting its focus from climate discussions to implementation through budgetary allocations and policy action.

Aurangzeb said he recently attended the IMF and World Bank spring meetings in Washington, where finance ministers participating in the Coalition of Finance Ministers for Climate Action emphasised the need for practical measures on climate financing and adaptation.

He said the government was working on a Climate Prosperity Plan focused on electric vehicle supply chains and renewable energy initiatives, while the State Bank of Pakistan’s measures to support green technology would help accelerate the transition.

The finance minister said maintaining macroeconomic stability had created fiscal space to respond to external shocks, including climate-related disasters.

Referring to the 2022 floods, Aurangzeb said Pakistan had sought international support through pledges made in Geneva, but many commitments did not fully materialise because project financing had also been included in the pledged amounts.

He said the government managed the impact of the 2025 floods through improved economic and financial stability without relying entirely on external assistance.

According to the finance minister, Pakistan receives annual financing of around $600 million to $700 million from the World Bank and Asian Development Bank for climate-related and development initiatives.

Aurangzeb said the government was also pursuing additional green financing avenues, including Panda Bonds worth around $250 million in Chinese yuan and local green Sukuk instruments.

He stressed the need to develop “bankable” projects capable of attracting international investment and financing.

The finance minister also called for faster adoption of renewable energy sources, including solar, wind and hydropower, to reduce dependence on fossil fuels.

He said the government would continue supporting the transition through subsidies and guarantees.

Aurangzeb also praised the National Disaster Management Authority for deploying artificial intelligence-based early warning systems that provide scientific data for disaster preparedness and policy planning.