IMF Infusion: Pakistan's Financial Fortification Amid Climate Challenges

Pakistan's central bank has received USD 1.2 billion from the IMF as part of loan programs supporting climate resilience. This is part of a 39-month, USD 7 billion arrangement. The aid supports macroeconomic stability and financial reforms necessary due to economic losses from climate-related disasters.

Pakistan's cash-strapped economy has been bolstered as the central bank confirmed an infusion of USD 1.2 billion from the International Monetary Fund. This fund is part of a broader initiative aimed at addressing climate resilience across the nation.

The IMF's Executive Board gave the green light to this disbursement during a meeting in Washington, forming part of the dual-track bailout involving a 37-month Extended Fund Facility (EFF) and a climate-focused Resilience and Sustainability Facility (RSF).

Pakistan has sustained significant economic losses due to climate-related disasters, with recent floods exacerbating poverty and causing widespread displacement. The current financial aid aims to stabilize the macroeconomy while facilitating long-term structural reforms.

(With inputs from agencies.)