Pakistan requests $1 billion in climate finance from International Monetary Fund

In September, the executive board of the International Monetary Fund approved a fresh $7 billion loan for Pakistan, authorities said. It came more than a couple of months after both sides said they had reached an agreement.

Islamabad is expected to receive the loan in installments over 37 months. The amount is aimed at boosting the country’s economy. Prime Minister Shehbaz Sharif hailed the deal in a statement and thanked Kristalina Georgieva, the head of the IMF and her team.

Pakistan targeting $1 billion in climate finance

The International Monetary Fund’s Resilience and Sustainability Trust (RST) helps vulnerable countries build resilience to external shocks and ensure sustainable development. Created in 2022, RST compliments the global body’s existing lending toolkit.

The facility provides longer-term, affordable financing to address longer-term challenges such as climate change and pandemic preparedness. It is the need of the hour as climate change continues to intensify storms and elevate temperatures globally.

Pakistan is targeting nearly $1 billion in a formal request for funding from the IMF to mitigate climate risks, the finance minister told Reuters. He believes Pakistan is a “very good candidate to be considered for a facility like this.

Delayed privatisation of Pakistan International airlines

Pakistan’s foreign minister also highlighted that he hoped to finalise both the delayed privatisation of the flag carrier and the outsourcing of Islamabad’s international airport in November, according to media reports.

Earlier, he had said he hoped the privatisation of Pakistan International could be completed by June 2024. Recently, he said the delay is caused by 2 factors: ensuring macroeconomic stability and doing the proper due diligence of the interested parties.