IMF's Climate Loan Boosts Pakistan's Economic Reforms

The IMF has approved a new USD 1.3 billion loan for Pakistan to tackle climate change challenges, supplementing its existing USD 7 billion agreement. The arrangement aims to enhance economic reforms, focusing on tax equity, monetary stability, energy transformation, and climate resilience, despite political challenges.

The International Monetary Fund (IMF) has sanctioned a USD 1.3 billion loan to Pakistan aimed at addressing climate change issues, alongside a staff-level agreement for a comprehensive review of the country's pre-existing USD 7 billion loan package.

The newly forged 28-month agreement under the Climate Resilience and Sustainability Facility seeks to equip countries to confront climate challenges while committing to crucial reforms. An additional USD 1 billion tranche under the USD 7 billion program will escalate Pakistan's total disbursements to USD 2 billion.

Praised as a testament to economic reform strides, this milestone is part of Pakistan's broader efforts in achieving tax equity, monetary stability, energy sector transformation, and building climate resilience. Overcoming numerous hurdles, the government has managed significant progress in economic stability and inflation control.

(With inputs from agencies.)