IMF agrees to Pakistan’s proposal on climate change spending

ISLAMABAD: The International Monetary Fund (IMF) review mission has agreed to a proposal, shared by Pakistan, regarding its spending on climate change, causing vulnerabilities to both rural and urban areas, ARY News reported on Friday, citing sources.

Sources told ARY News that the Planning Commission and IMF review mission held talks on climate change and country’s National Clean Air Policy.

The Planning Commission shared plans regarding ‘clean energy, electric vehicles and ban on coal imports’ with the review mission.

Pakistan submitted a Nationally Determined Contribution (NDC) in October 2021, aiming to shift to 60% renewable energy, and 30% electric vehicles by 2030 and ban coal imports as well as expand nature-based solutions.

During the meeting, the IMF review mission agreed to Pakistan’s proposal of spending one percent of gross domestic product (GDP) on climate change.

The review mission was also briefed on Green Energy and Billion Tree Tsunami Projects launched under Clean Air Policy. The commission told IMF that a ban has been imposed on crop residue burning to control environmental pollution.

The commission added that the country was implementing Euro 5 and Euro 6 transport technology policy under the National Clean Air Policy.

The mission was also apprised on extending credit and other financing options for Clean Air Policy between the Centre and provinces. They also discussed measures for early warning system under the National Adaptation Plan.

It is pertinent to mention here that the caretaker government and the International Monetary Fund (IMF) kicked off the much-awaited loan review talks.

Read more: IMF ‘satisfied’ with Pakistan’s economic progress

Earlier, the sources said that IMF expressed satisfaction with the financial deficit and economic growth rate data provided by Pakistan during talks.

A briefing by the Ministry of Finance stated that on September 23, the volume of the economy reached Rs500,817 billion، and the financial deficit was reduced from the target of Rs 2525 billion to Rs964 billion۔

The Pakistani officials told the IMF officials that from July to September, the federation spent only Rs40 billion in the development budget, which the international lender appreciated.