Islamabad, Nov 21: The International Monetary Fund (IMF) will provide $1 billion in climate financing to Pakistan after the first economic review of the Extended Fund Facility (EFF) loan program in March 2025, subject to meeting key targets.
If approved, this financing will make the current loan program the largest in Pakistan’s history. However, recent discussions with the IMF mission showed limited progress on climate-related funding, according to sources.
The IMF has agreed to Pakistan’s proposal to allocate 1% of GDP annually to climate change initiatives, including disaster management and early warning systems under the National Adaptation Plan.
The release of climate financing will depend on achieving specific conditions tied to these targets, Finance Ministry sources confirmed.
