ISLAMABAD: On top of a technical mission currently in town studying judicial and regulatory systems, Pakistan is expecting two more policy-level staff missions of the International Monetary Fund (IMF) for talks on more than $1bn additional financing for climate resilience and review of ongoing $7bn Extended Fund Facility (EFF).

Informed sources in the finance ministry said a staff mission on climate resilience financing would arrive on Feb 24 for discussions on Pakistan’s request for more than $1bn financing under the Fund’s relatively cheaper Resilience and Sustainability Facility (RSF).

The funding under RSF is made available to nations who commit high quality reforms to build resilience against climate catastrophes through adaptation and is repayable over 30-year period including a 10-year grace and is normally cheaper than EFF terms.

Teams to hold talks for over $1bn climate resilience funding, biannual performance review of $7bn EFF

In October last year, Pakistan had formally requested the IMF to top up its $7bn EFF with another $1.2bn RSF.

This would be followed by another staff mission visiting Pakistan, tentatively in the first week of March, for the first biannual performance review of the $7bn EFF.

The authorities are working overnight these days to meet pending measures to meet most of the benchmarks, the latest being approval by the federal cabinet the mechanism for publication of assets and tax returns of the top government servants.

The finance ministry officials confirmed these visits a day after Prime Minister Shehbaz Sharif met IMF Managing Director Kristalina Georgieva in Dubai on the sidelines World Governments Summit to seek support for energy sector reforms.

The Fund had already advised Pakistan to invest 1pc of GDP per year (over Rs1.24 trillion at current year estimate) in climate resilience and adaptation reforms to be ready to fight increasing cycles of extreme weather conditions.

Published in Dawn, February 13th, 2025