A technical delegation from the International Monetary Fund (IMF) has arrived in Islamabad to discuss climate financing and policy measures with Pakistani officials.
The four-member team will engage in talks with both federal and provincial authorities to review Pakistan’s climate funding strategies, including green budgeting and tracking mechanisms.
The talks, scheduled to run until February 28, are aimed at assessing Pakistan’s progress on climate adaptation and financing. A major agenda item is the proposed introduction of a carbon levy in Pakistan’s federal budget for the 2025-26 fiscal year. The IMF delegation will provide recommendations on the implementation of the carbon levy and its broader framework.
Additionally, discussions will address subsidies, the promotion of electric vehicles, and the expansion of green budgeting in the country. Pakistani officials are expected to present briefings on current climate initiatives, as well as plans for the future. The visit aligns with efforts to align Pakistan’s financial policies with global climate commitments, ensuring that economic reforms are both sustainable and climate-conscious.
In related developments, the IMF also announced that its review mission will visit Pakistan in early March to negotiate the next tranche of the $7 billion loan, which will include a focus on climate financing. The delegation will review technical aspects of climate funding at Pakistan’s request, while also conducting discussions on the next installment of the loan. Finance Minister Aurangzeb has previously indicated that Pakistan expects between $1 to $1.5 billion in climate funding from the IMF.
Earlier this year, the IMF held meetings with officials from the Auditor General of Pakistan (AGP), the Federal Board of Revenue (FBR), and the Securities and Exchange Commission of Pakistan (SECP) to assess governance and corruption. The IMF mission was briefed on transparency, digital tax reforms, and measures to improve ease of doing business in the country.
