Pakistan, IMF start discussions on $1.5B Climate Financing focused on green budgeting and climate related expenditures.
The International Monetary Fund (IMF) technical mission began crucial talks on Monday regarding Pakistan’s request for an additional $1.5 billion in financing to support climate-related initiatives.
The discussions are part of the IMF’s Resilience and Sustainability Facility (RSF), which provides long-term funding for climate resilience projects. The IMF team is consulting with key federal ministries, including Planning, Finance, Climate Change, Petroleum, and Water Resources. Additionally, meetings involve the Federal Board of Revenue (FBR), disaster management authorities, and provincial governments.
Officials confirmed that the IMF delegation has already met representatives from the federal government, as well as Khyber Pakhtunkhwa and Sindh. Meetings with Punjab and Balochistan officials are scheduled for Tuesday. Talks have so far focused on green budgeting, climate-related expenditures, financial monitoring, and reporting systems.
A key issue under discussion is the potential implementation of a carbon levy in the fiscal year 2025-26, with preliminary proposals set to be reviewed in the next phase of negotiations. The discussions, continuing until February 28, will also cover policies on electric vehicles, climate-related subsidies, and broader environmental reforms.
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