Pakistan seeks additional $1.5b from IMF to combat climate change

NEW YORK: Pakistan has requested an additional $1.5 billion loan from the International Monetary Fund (IMF) to combat the impacts of climate change in the country, ARY News reported.

During a meeting with IMF Managing Director Kristalina Georgieva, Prime Minister Shehbaz Sharif discussed the need for urgent action to control climate change in Pakistan.

The loan will support Pakistan’s Climate Resilience and Sustainability Facility, which aims to promote economic stability and sustainable development in the country.

The Prime Minister also expressed appreciation for the IMF’s technical assistance and capacity-building programs, which have helped to strengthen the country’s institutions and improve its economic management.

The IMF Managing Director expressed the Fund’s support for Pakistan’s efforts and emphasized the importance of maintaining macroeconomic stability and promoting inclusive and sustainable growth.

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During the meeting, they also discussed the urgent need of mobilizing adaptation financing for climate change. The Prime Minister agreed to have the Finance Minister take up this critical issue with senior management at the IMF during the Annual Meetings in October.

The two leaders agreed to strengthen cooperation between the government and the IMF to promote economic stability and growth.

Its worth mentioning here that the International Monetary Fund (IMF) released the first tranche of $1 billion to Pakistan, which approved a $7 billion loan for Islamabad under the Extended Fund Facility. The new loan program for Pakistan spans 37 months.