On Monday, a technical mission from the International Monetary Fund (IMF) began pivotal discussions regarding Pakistan’s request for an additional USD 1.5 billion in financing to tackle climate change. These discussions are part of the IMF’s Resilience and Sustainability Facility (RSF), designed to provide long-term funding for climate resilience initiatives.
The IMF’s technical team is engaging with key ministries, including Planning, Finance, Climate Change, Petroleum, and Water Resources. Meetings will also involve the Federal Board of Revenue (FBR), disaster management agencies, and provincial governments.
In the first round of discussions, the federal government, along with the provincial governments of Khyber Pakhtunkhwa and Sindh, met with the IMF team. Meetings with Punjab and Balochistan are scheduled for today, Tuesday. Key areas of focus during these discussions include green budgeting, tracking climate expenditures, and improving reporting mechanisms for climate spending.
As part of the negotiations, the government is reportedly contemplating the introduction of a carbon levy starting in fiscal year 2025-26. This initial proposal will be discussed in the upcoming round of talks.
The ongoing discussions, set to continue through February 28, will also cover important topics such as carbon levies, electric vehicle incentives, and subsidies aimed at advancing Pakistan’s climate change agenda. Federal and provincial representatives will brief the IMF team on their respective climate action plans, highlighting their efforts to meet the country’s climate resilience goals.
