IMF urges Pakistan to prioritise climate adaptation for disaster resilience

The International Monetary Fund (IMF) has called on Pakistan to intensify climate adaptation efforts at both federal and provincial levels to mitigate the impact of extreme weather events such as floods and droughts. The recommendations, made by an IMF technical mission currently in Pakistan, include stricter regulations to prevent construction near rivers, waterways, and forests, along with measures to promote energy-efficient buildings in both urban and rural areas.

The IMF’s four-member delegation has been holding discussions with federal and provincial officials as part of Pakistan’s request for over $1 billion in additional financing under the Resilience and Sustainability Facility (RSF). 

The mission has stressed that climate adaptation must be integrated into public investment strategies, disaster risk management, and state-owned enterprises’ planning. 

The delegation also reviewed Pakistan’s green budgeting framework and the exchange of climate-related financial information between different tiers of government. Officials briefed the team on the government’s disaster risk management strategy, pollution control measures, and progress on implementing new building codes.

The IMF has urged Pakistan to assess the vulnerability of key infrastructure sectors—energy, transport, communications, and health—to climate-related disasters such as floods, cyclones, and heatwaves. It has also recommended defining sector-specific climate adaptation targets and investment strategies. To qualify for RSF funding, Pakistan must incorporate climate resilience measures into its urban planning guidelines, building codes, and public investment projects.

The RSF facility, designed for nations implementing structural reforms to enhance climate resilience, offers long-term financing on more favourable terms than the EFF. Pakistan formally requested an additional $1.2 billion under the RSF in October last year. 

The IMF has suggested that Pakistan invest at least 1% of its GDP—equivalent to over Rs1.24 trillion—annually in climate resilience and adaptation measures to counter the growing risks of extreme weather events. The Fund estimates that such investments could reduce the economic impact of natural disasters by one-third and accelerate recovery.