Islamabad (TDI): A technical mission from the International Monetary Fund (IMF) begins discussions in Islamabad today (Monday) on Pakistan’s request for over $1 billion in additional financing for climate resilience.
This will be followed by a policy review early next week to assess the government’s performance under the current $7 billion Extended Fund Facility (EFF).
The technical team will engage mostly with key ministries, including climate change, petroleum, planning, finance, and water resources, as well as the Federal Board of Revenue, disaster management agencies and provincial governments.
The IMF resident representative in Islamabad, Mahir Binici, confirmed the engagements spanning over three weeks from now, Dawn reported.
“An IMF staff delegation is set to visit Pakistan in early to mid-March for talks around the first review under Pakistan’s Extended Fund Facility-supported program and the authorities’ request for assistance under a Resilience and Sustainability Facility (RSF) arrangement.
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In this regard, a technical team will be in Islamabad starting in late February to discuss technical matters related to a possible RSF arrangement,” he said.
The Fund had already advised Pakistan to invest 1 percent of GDP per year (over Rs1.24 trillion at the ongoing year’s estimate) in climate resilience and adaptation reforms to be ready to tackle increasing cycles of extreme weather conditions, especially floods and sustain economic growth and reverse inequalities.
Read More: IMF Team to Visit Pakistan for $1b Climate Financing Talks
Such an investment in climate-adaptive infrastructure can reduce the negative growth effects of a natural disaster shock by one-third while ensuring a swift and more complete recovery, the IMF believed.
The IMF said that about 1 percent of GDP investment in adaptation infrastructure would enhance Pakistan’s climate resilience and buffer climate shocks.
