Islamabad
Pakistan is requesting an additional USD 2 billion from the International Monetary Fund (IMF) to combat the severe impacts of climate change, the request will be presented by Finance Minister Muhammad Aurangzeb during the IMF and World Bank Group’s 2024 Annual Meetings in Washington, DC, started from Monday to October 26. Aurangzeb will lead a delegation that includes top financial officials.
This move comes as the IMF has expressed concerns over Pakistan’s debt repayment capacity, labeling it as ‘fragile.’ The country’s external financing needs under the Extended Fund Facility (EFF) program are estimated at USD 62.6 billion over the next three years, with a rise to USD 110.5 billion projected for 2024-2029. The IMF warned that Pakistan’s repayment capacity is dependent on effective policy implementation and timely external funding, highlighting risks due to high public debt, low reserves, and sociopolitical instability.
Pakistan’s delegation aims to secure these funds to address challenges posed by climate-related disasters, which have heavily impacted its economy. The IMF’s Executive Board recently approved a 37-month EFF agreement for Pakistan, valued at approximately USD 7 billion. However, the additional USD 2 billion could be crucial in addressing immediate climate-related needs.
