The International Monetary Fund (IMF) has called on Pakistan to prioritize climate adaptation strategies at both federal and provincial levels to build resilience against natural disasters such as floods and droughts. The IMF’s technical mission, currently in discussions with the Pakistani government, recommended stronger measures to prevent construction near rivers, canals, and forests, as well as the promotion of energy-efficient buildings in both urban and rural areas.
This call for action comes as Pakistan prepares to request over $1 billion in additional financing for climate resilience. A nine-member IMF team, led by Mission Chief Nathan Porter, is set to arrive in Islamabad on March 3 for a two-week review of the country’s performance under the $7 billion Extended Fund Facility (EFF). The review, which is expected to conclude by March 15, will assess Pakistan’s economic strategies and progress.
As part of the discussions on climate financing, the IMF highlighted the importance of integrating climate adaptation measures into public investment strategies at all levels of government, including state-owned entities. The IMF emphasized that disaster risk management should focus more on preparedness and resilience, rather than merely rescue and recovery efforts.
The IMF mission also evaluated how Pakistan’s federal and provincial governments were implementing “green budgeting” and how information and financing were being shared between these levels of government. The Pakistani government briefed the mission on the development of new building codes, which have been shared with provincial authorities for implementation.
Meanwhile, a Senate Standing Committee on Water Resources raised concerns over the lack of progress in addressing encroachments along rivers and waterways. Data from Suparco revealed that significant encroachments in Punjab had not been removed since August 2024, particularly in the Sargodha and Multan irrigation zones. The committee stressed the urgency of removing these encroachments to prevent loss of life and property, warning that failure to act before the monsoon season would be considered a criminal offense.
The IMF has urged Pakistan to identify infrastructure in key sectors—such as energy, transport, communications, and health—that are vulnerable to climate-related disasters like floods, cyclones, and heatwaves. The Fund also recommended setting clear adaptation targets, defining sector-specific contributions to climate change mitigation, and outlining investment plans for future projects.
To qualify for additional funding under the IMF’s Resilience and Sustainability Facility (RSF), Pakistan must take steps to integrate climate resilience into sectoral planning and project preparation. The RSF, which offers lower interest rates and longer repayment terms, is designed to help countries build resilience against climate-related catastrophes through sustainable adaptation measures.
In a broader call for climate action, the IMF has urged Pakistan to invest 1% of its GDP annually—over Rs1.24 trillion based on current estimates—in climate resilience and adaptation reforms. The Fund believes this investment will significantly reduce the economic impact of natural disasters, accelerating recovery and enhancing Pakistan’s climate resilience to future challenges.
