Pakistan and IMF Strike $1.3 Billion Deal for Climate Resilience and Economic Reforms
Upon approval, the funds will provide critical support for Pakistan’s economic stability and climate resilience initiatives.
The International Monetary Fund (IMF) and Pakistan have reached a staff-level agreement on the first review of Pakistan’s Extended Fund Facility (EFF) and a new arrangement under the Resilience and Sustainability Facility (RSF).
This agreement includes access to $1.3 billion under the RSF for climate resilience and sustainability efforts over the next 28 months.
Additionally, Pakistan will receive approximately $1 billion under the EFF, bringing total disbursements under the program to around $2 billion.
“Over the past 18 months, Pakistan has made significant progress in restoring macroeconomic stability and rebuilding confidence despite a challenging global environment,” the IMF said in a statement.
The new 28-month deal would support Pakistan’s efforts to mitigate and adapt to climate change, the statement added.
“Upon approval (by the IMF board), Pakistan will have access to approximately $1 billion under the EFF, bringing total disbursements under the programme to around $2 billion,” the IMF stated.
The RSF aims to support Pakistan’s efforts in building resilience to natural disasters, improving water resource management, and promoting green energy and mobility. The EFF focuses on fiscal consolidation, monetary policy to control inflation, and energy sector reforms.
The agreement follows discussions held between February 24 and March 14, 2025, in Karachi and Islamabad, and is subject to approval by the IMF’s Executive Board. Upon approval, the funds will provide critical support for Pakistan’s economic stability and climate resilience initiatives.
