IMF Confirms Pakistan’s Inquiry About Climate Financing, Says Discussions Will Take Time

Pakistan and International Monetary Fund (IMF) are engaged in preparatory work for Resilience and Sustainability Facility (RSF), which would be considered by the Fund Executive Board.  This was stated by Julie Kozack, Director of the Communications Department, IMF while addressing at a press briefing.  In reply to a regarding RSF the IMF official stated, “Pakistan has indeed inquired about an RSF arrangement. This is the Resilience and Sustainability Facility. Our team and the authorities are engaged in preparatory work. But I should just mention that there’s also considerable background work needed in order to complete the discussions around any potential RSF. And of course, like any program, an RSF would of course need to be considered by our Executive Board”.  She further stated that on September 25th, the Executive Board approved a new 37 month $7 billion EFF arrangements. The key priorities under the EFF include strengthening policymaking, building economic and climate resilience and advancing reforms to support stronger, sustained and more inclusive growth.  “The IMF team was just in Pakistan and finished a mission. It was a staff visit from November 12th to 15th and the staff at the end of that visit they felt encouraged by the authorities reaffirmed commitment to the program”, she added.  Replying to another quest regarding revenue shortfall, the IMF said that this is something that the team will be assessing as part of the full review mission that will take place. So as the review mission takes place later on, the team will assess all of the targets under the program. Right. Including those on the fiscal side. Now, why there was a staff visit at this point, under Pakistan’s EFF, the reviews are only taking place semiannually. So that’s twice a year. In some cases, we have programs where reviews take place quarterly. Pakistan’s. In Pakistan’s case, it’s semiannual. And it’s very customary to have a short staff visit in between those two semiannual review missions. So, this is a standard procedure, she added.   ProPakistani had reported earlier, citing finance ministry sources, that 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.