A four-member delegation from the International Monetary Fund (IMF) has arrived in Islamabad for crucial discussions on climate financing, reported 24NewsHD TV channel on Monday.
The team held an introductory meeting with officials at the Ministry of Finance on Friday morning and will engage in technical discussions over the next two days.
According to sources from the Ministry of Finance, the IMF delegation will hold discussions with both federal and provincial authorities, focusing on green budgeting, climate impact tracking, reporting mechanisms, and project funding. The talks will explore how Pakistan can receive up to $1.5 billion in climate resilience funds.
Pakistan vulnerable to climate change
Pakistan is among the countries most vulnerable to climate change, according to the Global Climate Risk Index. The 2022 floods, which scientists believe were worsened by global warming, affected over 33 million people and resulted in more than 1,700 deaths.
The country's ongoing economic struggles and heavy debt burden hindered its ability to respond effectively to the disaster.
Background on IMF’s climate facility
Last year, on November 22, the IMF confirmed that it was engaged in preparatory work with Pakistani authorities regarding the Resilience and Sustainability Facility (RSF), which provides climate-related funding.
Addressing a press briefing in Washington, IMF Communications Director Julie Kozack acknowledged Pakistan’s request for RSF funding.
The IMF director stated that while preliminary work is ongoing, extensive groundwork remains before any final agreement is reached.
When questioned about Pakistan’s potential revenue shortfalls, she clarified that the IMF team will assess these issues as part of its full review mission.
She emphasised that such short staff visits are standard practice between the IMF’s semi-annual review missions.
Another IMF experts team expected next month
As per the channel report on Feb 24, 2025, a team of experts from the IMF is set to visit Pakistan in mid-March for the first review of the country’s $7 billion loan programme and if the review is successful, the IMF is expected to release a $1 billion tranche to help Pakistan, which is struggling with its finances, boost its foreign exchange reserves and meet the IMF's target of three months' worth of import coverage.
"An IMF staff team is scheduled to visit Pakistan in early to mid-March to discuss the first review under the Extended Fund Facility-supported program," said Mahir Binici, the IMF’s resident representative in Pakistan.
Reporter: Waqas Azeem