The International Monetary Fund (IMF) will provide $1 billion in climate financing to Pakistan following the first economic review of the Extended Fund Facility (EFF) loan program in March 2025, provided key targets are met, Finance Ministry sources told ProPakistani.
The potential financing would make the current loan program the largest in Pakistan’s history. However, progress on securing climate-related funds during recent discussions with the IMF mission wasn’t up to the mark, sources added.
Sources said the Washington-based lender has agreed to Pakistan’s proposal to allocate 1 percent of GDP annually for climate change initiatives, including combating natural disasters and implementing early warning systems under the National Adaptation Plan.
The release of the climate financing is contingent on meeting specific conditions tied to these targets, ministry sources added.