ISLAMABAD: An International Monetary Fund (IMF) delegation, led by Nathan Porter, is scheduled to visit Pakistan from November 11 to 15, according to sources, to hold discussions on a $1 billion additional loan to support the country’s economic stability and growth.
The primary focus of the talks will be on climate change mitigation efforts, following Pakistan’s request for climate financing submitted to the IMF last month. As part of this initiative, the Pakistani government has committed to allocating 1% of the country’s GDP to address climate change.
During the visit, the IMF and Pakistani officials will discuss new concessional loans aimed at supporting climate change projects. They will also address provincial budgets and their allocations for climate change measures.
Additionally, the delegation will review the existing IMF loan program and hold discussions on Pakistan’s tax revenue, particularly the potential shortfalls between July and September.
Earlier, Pakistan had requested an additional $2 billion from the IMF to tackle climate change impacts, although this request was not immediately approved. In response, Pakistan has taken steps to ensure fiscal sustainability, including the passage of the FY24 budget, which aims for a primary surplus of approximately 0.4% of GDP. The government has also committed to maintaining a market-determined exchange rate and reducing inflation.
In September, Pakistan made a request for an additional $1.5 billion loan to support the country’s Climate Resilience and Sustainability Facility, which seeks to promote economic stability and sustainable development.
It is also important to note that the IMF Executive Board approved Pakistan’s 37-month Extended Fund Facility (EFF) arrangement of around $7 billion on September 25.
