The International Monetary Fund (IMF) has announced that Pakistan will receive $1.3 billion in climate financing, according to IMF Director of Communications Julie Kozack. Speaking at a press conference, Kozack confirmed that ongoing discussions with Pakistan covered both the Extended Fund Facility (EFF) and the newly secured climate financing.
The climate financing is part of a 28-month program aimed at bolstering Pakistan’s climate resilience. Prime Minister Shehbaz Sharif previously confirmed the agreement during a Cabinet meeting in Islamabad. The deal is subject to approval by the IMF board, which will pave the way for the much-needed funds to support Pakistan’s environmental and economic stability.
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In addition to the $1.3 billion, Pakistan is set to receive $1 billion under the $7 billion bailout package agreed upon last year. Nathan Porter, the IMF mission chief to Pakistan, highlighted that the staff-level agreement addresses both the first review of the 37-month EFF and the new climate-related arrangement under the IMF’s Resilience and Sustainability Trust.
Porter also noted that Pakistan has made substantial strides in stabilizing its macroeconomic environment despite global challenges, allowing for continued access to funds that will support the country’s recovery efforts.
Upon the IMF board’s approval, Pakistan will have access to around $2 billion in total under the EFF and climate programs, marking a significant step toward economic stabilization.
