Pakistan to seek loan package plus climate finance from IMF

ISLAMABAD: Pakistan will seek a loan package from the International Monetary Fund (IMF) plus 1.5 billion dollars climate finance, citing sources ARY News reported on Monday.

The country is exploring the possibility of increasing the program to $7.5-8 billion, reportedly seeking addition of climate finance in the next bailout package, sources said.

Climate finance will be sought to expand the loan package. The International Monetary Fund provides affordable long-term financing for countries dealing with climate change and pandemics.

According to sources, the authorities are looking for options to increase the upcoming IMF bailout package to 7.5 to 8 billion dollars with possible application for climate finance.

Sources said that the IMF Board of Governors in its meeting in December last year had approved enhancing the quota of all countries and this decision will also be implementable over Pakistan. “Under this decision Pakistan could borrow from 6 to 8 billion dollars”.

Pakistan is seeking a Bangladesh-style deal with the IMF for special financing of 1.5 billion dollars for climate finance, sources said.

Sources said that Pakistan have to allocate initial fund for betterment of the environment before seeking the loan from the global lending institution.