Pakistan seals $1.3bln in climate financing from IMF

Pakistan has secured $1.3 billion climate financing from the International Monetary Fund (IMF).

This was stated by IMF Director of Communications Julie Kozack while responding to a query of ARY News during a press conference.

Kozack confirmed that discussions on the Extended Fund Facility (EFF) and climate financing were held separately. Pakistan successfully secured $1.3bln after successful negotiations on climate financing, the IMF communications director said and added the funds will be disbursed over 28 months.

IMF official also stated that Pakistan’s 37-month Extended Fund Facility program, finalized in September, will provide $7 billion in installments.

Following successful staff-level negotiations on March 25, Pakistan has completed its first EFF review, which will unlock an additional $1 billion.

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On Wednesday, Pakistan and the International Monetary Fund (IMF) reached a staff-level agreement on the first review under Pakistan’s 37-month $7bn Extended Fund Facility (EFF) and on a new 28-month $1.3bn arrangement under the Resilience and Sustainability Facility (RSF), the federal government and the IMF confirmed.

“The IMF team has reached a staff-level agreement (SLA) with the Pakistani authorities on the first review of the 37-month Extended Arrangement under the Extended Fund Facility (EFF), and on a new 28-month arrangement under the IMF’s RSF with total access over the 28 months of around $1.3 billion (SDR 1 billion). The staff-level agreement is subject to approval of the IMF’s Executive Board. Upon approval, Pakistan will have access to about US$1.0 billion (SDR 760 million) under the EFF, bringing total disbursements under the program to about US$2.0 billion,” the IMF said in a statement.