ISLAMABAD: The International Monetary Fund (IMF) has confirmed that its delegation will visit Pakistan in mid-March to review the country’s $7 billion loan program.
According to IMF representative Mair Benitez, discussions will be held with Pakistani authorities regarding the first review under the loan program.
In addition to the loan review, the delegation will also address Pakistan’s request for climate financing. A technical team from the IMF is scheduled to arrive in late February to discuss the technical aspects of climate-related funding.
The team will assess potential climate financing arrangements and engage in discussions on relevant technical matters.
Earlier, Finance Minister Muhammad Aurangzeb stated that Pakistan would hold talks with the IMF on February 24 regarding climate fund assistance. He added that Pakistan expects to secure $1 to $1.5 billion in climate funding, while another IMF delegation will visit in March for the six-month loan program review.
Aurangzeb highlighted that Pakistan has maintained a current account surplus for seven months and emphasized the need for structural reforms to address economic challenges.
Pakistan formally requested approximately $1 billion in climate funding from the IMF in October last year to mitigate climate change risks.
The country’s economy is gradually recovering under the $7 billion IMF Extended Fund Facility secured last year. Pakistan remains among the nations most vulnerable to climate change, as ranked by the Global Climate Risk Index.
The devastating 2022 floods, exacerbated by global warming, affected 33 million people and claimed over 1,700 lives. Pakistan’s economic challenges and heavy debt burden have hindered its ability to respond effectively to such disasters.
