Pakistan Seeks $1.5 Billion IMF Loan to Tackle Climate Change Challenges

Pakistan has requested an additional $1.5 billion loan from the International Monetary Fund (IMF) to address the pressing impacts of climate change, according to a report by ARY News. During a key meeting with IMF Managing Director Kristalina Georgieva in New York, Prime Minister Shehbaz Sharif outlined the country’s urgent need for funds to support its Climate Resilience and Sustainability Facility. This facility aims to foster economic stability and promote sustainable development in a country increasingly vulnerable to the effects of climate change.

IMF Support for Economic Stability and Institutional Strengthening

Prime Minister Shehbaz expressed his gratitude to the IMF for its continued technical assistance and capacity-building programs, which have been instrumental in strengthening Pakistan’s institutions and improving economic governance. In response, Kristalina Georgieva reaffirmed the IMF’s commitment to supporting Pakistan’s efforts, emphasizing the importance of maintaining macroeconomic stability while promoting inclusive and sustainable growth in the country.

Discussion on Climate Adaptation Financing and Future Cooperation

A key topic during the meeting was the urgent need to mobilize financing for climate adaptation, with Prime Minister Shehbaz agreeing that Pakistan’s Finance Minister would further discuss the issue with senior IMF officials during the upcoming Annual Meetings in October. Both leaders stressed the importance of deepening cooperation between the IMF and Pakistan to ensure the country’s economic growth remains stable and sustainable.It is noteworthy that the IMF recently approved a $7 billion loan package for Pakistan under its Extended Fund Facility, with the first $1 billion tranche already released. The newly proposed $1.5 billion loan would further strengthen the country’s climate resilience and economic recovery efforts over the next three years