IMF Lists Pakistan Among World’s 15 Most Climate-Vulnerable Countries, Approves $410 Million Climate Funding
Pakistan has been ranked among the top 15 most climate-vulnerable nations in the world, according to the International Monetary Fund (IMF) in its latest climate report. The country is witnessing a rapid increase in the frequency, intensity, and scale of natural disasters, posing significant challenges to its economy and development.
As part of the newly launched $1.4 billion climate financing initiative, the IMF has allocated $410 million to Pakistan for the upcoming fiscal year. This support will be provided under the Resilience and Sustainability Facility (RSF), which is linked to Pakistan’s Extended Fund Facility (EFF) program.
The IMF highlighted that climate-related disasters have caused massive financial losses in Pakistan. The 2022 floods alone displaced over 33 million people and led to damages exceeding $30 billion.
Read More: IMF Reports Pakistan Facing Challenging Fiscal Situation
To address the escalating climate crisis, the IMF outlined key policy recommendations and national goals. These include:
- Promoting electric vehicles
- Expanding renewable energy adoption
- Initiating a 10-year nationwide tree plantation drive
- Limiting reliance on coal-fired power plants
Pakistan has pledged to cut greenhouse gas emissions by 15% by 2030. To meet this target, the IMF advised the government to adopt measures like green budget tagging, disaster risk budgeting, and to strengthen legal and institutional frameworks under the National Climate Change Policy.
Despite some progress, the IMF warned that Pakistan’s ability to cope with environmental shocks remains weak, and these challenges continue to strain the country’s financial and development agendas. Public projects are frequently delayed or derailed due to natural disasters.
To enhance resilience, Pakistan has established a dedicated climate fund and a special legislative authority to ease access to climate finance. However, the IMF emphasized that further financial support is crucial to fully implement Pakistan’s national climate strategy.
The report concludes that climate change poses a dual threat to Pakistan—triggering both economic stress and long-term developmental setbacks—requiring urgent and sustained action.
