ISLAMABAD: The International Monetary Fund (IMF) has confirmed that a delegation will visit Pakistan in mid-March to review the country’s $7 billion loan program.
According to IMF representative Mair Benitez, the delegation will hold discussions with Pakistani authorities on the first review under the loan program. Additionally, the IMF team will assess Pakistan’s request for climate financing. A technical team will arrive in late February to discuss technical aspects of climate funding and explore potential arrangements.
Earlier, Finance Minister Muhammad Aurangzeb stated that Pakistan will hold talks with the IMF on February 24 regarding climate financing. The country expects to receive $1 to $1.5 billion under this initiative. The minister also noted that Pakistan has maintained a surplus current account for seven months and emphasized the need for structural reforms to strengthen the economy.
In October last year, Pakistan formally requested around $1 billion from the IMF under a climate resilience fund to address vulnerabilities linked to climate change. The country’s economy remains on a recovery path after securing the $7 billion IMF Extended Fund Facility.
Pakistan is among the most climate-vulnerable nations, as highlighted by the Global Climate Risk Index. The devastating 2022 floods, exacerbated by global warming, affected 33 million people and claimed over 1,700 lives. The country’s economic challenges and high debt burden have constrained its ability to respond effectively to such disasters. The upcoming IMF visit is crucial for assessing Pakistan’s economic progress and future financial support.
