Pakistan Gears Up for Key IMF Missions to Boost Climate Resilience and Economic Reforms

Pakistan is gearing up to host two key IMF policy missions aimed at securing over $1 billion in additional funding for climate resilience, along with reviewing the progress of the ongoing $7 billion Extended Fund Facility (EFF). This comes at a time when a technical mission is already in Pakistan, evaluating the country’s judicial and regulatory frameworks.

On February 24, an IMF mission focused on climate resilience financing will arrive to discuss Pakistan’s bid for more than $1 billion from the Resilience and Sustainability Facility (RSF). The RSF offers more affordable financing options with a 30-year repayment plan, including a decade-long grace period, for countries that commit to implementing top-tier climate adaptation reforms.

In addition, another IMF team is expected in early March to carry out the first performance review of Pakistan’s $7 billion EFF program.

Back in October, Pakistan formally asked the IMF for an extra $1.2 billion under the RSF, as part of efforts to meet its fiscal commitments. Among these is a new mechanism to ensure transparency by publishing the assets and tax returns of senior government officials, which has already been approved by the cabinet.

This sequence of visits follows Prime Minister Shehbaz Sharif’s meeting with IMF Managing Director Kristalina Georgieva in Dubai, during the World Government Summit, where Sharif requested IMF backing for urgent energy sector reforms.

The IMF has recommended that Pakistan allocate 1% of its GDP annually, equating to over Rs 1.24 trillion, towards climate resilience and adaptation programs, to help combat the severe effects of extreme weather.