The International Monetary Fund (IMF) initiated discussions in Islamabad on Monday regarding Pakistan’s request for additional financing to enhance climate resilience.
This initiative is part of the IMF’s Resilience and Sustainability Facility (RSF), which provides long-term concessional funding for climate-related spending, such as adaptation and transitioning to cleaner energy.
The IMF technical team plans to engage primarily with several key ministries, including those of planning, finance, climate change, petroleum, and water resources. They will also collaborate with the Federal Board of Revenue, disaster management agencies, and provincial governments.
These discussions are crucial as Pakistan seeks to bolster its climate resilience and align its economic policies with global climate commitments.
Following the initial talks, a policy review will take place early next week to assess the government’s performance under the ongoing $7 billion Extended Fund Facility (EFF).
The agenda for the discussions includes the proposed introduction of a carbon levy in the federal budget for the 2025-26 fiscal year, green budgeting, electric vehicles, and subsidies.
IMF’s resident chief, Mahir Binici, earlier revealed that two missions were scheduled to visit Islamabad. The first delegation would engage in discussions on the authorities’ request for assistance under a Resilience and Sustainability Facility (RSF) arrangement, while the second would assess the country’s progress under the latest bailout program.
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