International Monetary Fund (IMF) delegation, led by Nathan Porter, is set to arrive in Pakistan from November 11 to 15, ARY News reported citing sources. It reported in media that the visit will aim to conduct talks on a $1 billion additional loan facility to support Pakistan’s economic stability and growth. Sources revealed that the loan negotiations will focus on climate change mitigation efforts, building on Pakistan’s request for climate financing submitted to the IMF last month. As part of this initiative, the government has committed to allocating 1% of the country’s economy towards addressing climate change, sources added. During the visit, IMF and Pakistani officials will discuss new concessional loans to support climate change initiatives and talks will also cover provincial budgets and their allocation for climate change measures.

Sources said that the delegation will review the existing IMF loan program and provide an initial briefing and discussions may address Pakistan’s tax revenue and potential shortfalls between July and September. Earlier, the government of Pakistan sought an additional $2 billion from IMF to address the impacts of climate change. This development came after Pakistan’s initial request for climate financing was not immediately approved by the IMF, sources said. Sources revealed that Pakistan took steps to address fiscal sustainability and mobilize revenue, including passing the FY24 budget, which advances a primary surplus of around 0.4 percent of GDP. The government has also committed to ensuring a market-determined exchange rate and reducing inflation. On September 27, Pakistan requested an additional $1.5 billion loan from IMF to combat the impacts of climate change in the country.

Credit: Independent News Pakistan