The government of Pakistan is seeking an additional $2 billion from the International Monetary Fund (IMF) to combat the effects of climate change. Finance Minister Muhammad Aurangzeb is expected to present this request at the IMF’s annual meetings later this month.
This request comes on the heels of a prior appeal for $1.5 billion in climate financing, which was not immediately granted. Pakistan has implemented various fiscal measures, including passing the FY24 budget with a primary surplus of 0.4% of GDP, and has committed to maintaining a market-determined exchange rate and reducing inflation.
The loan will help support Pakistan’s Climate Resilience and Sustainability Facility. The meetings, which will include officials from the Finance Ministry and the State Bank, are set to conclude by October 26.
In September, Pakistan’s $7 billion Extended Fund Facility (EFF) was approved to enhance economic stability and growth.
