IMF links $1 billion climate financing to Pakistan’s economic review targets

The International Monetary Fund (IMF) is expected to provide Pakistan with $1 billion in climate financing, contingent on achieving key implementation targets during the first economic review under the $7 billion Extended Fund Facility. 

According to a news report, the Ministry of Finance revealed that during recent discussions with the IMF mission, Pakistan’s economic team was informed of the potential financing, which would make the ongoing loan program the largest in the country’s history. 

The IMF mission and Pakistan’s economic team are set to meet in March for the first review.

However, significant progress on securing climate financing remains pending, as the IMF has tied its provision to the fulfillment of specific goals. Among these is the allocation of 1% of the country’s GDP annually to address climate change and natural disasters. Establishing an early warning system under the National Adaptation Plan is also among the outlined conditions.

The IMF’s climate financing aims to support Pakistan’s efforts to mitigate and adapt to climate impacts, though its release remains tied to Pakistan meeting its economic review benchmarks.