IMF confirms Pakistan visit for $7bln loan review
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ISLAMABAD: The International Monetary Fund (IMF) has confirmed that a delegation will visit Pakistan in mid-March to review the country's $7 billion loan program.
According to an IMF representative, the delegation will engage with Pakistani authorities on the first review under the loan program. In addition to this, discussions will be held regarding Pakistan's request for climate financing.
A technical team from the IMF is also scheduled to visit Pakistan at the end of February to discuss the technical aspects of climate financing. This team will assess potential financing arrangements and hold consultations on related matters.
Prior to this, Finance Minister Muhammad Aurangzeb stated that Pakistan will begin talks with the IMF delegation on February 24 regarding a climate fund. He mentioned that the country expects to receive between $1 billion to $1.5 billion from the IMF under climate funding.
Additionally, the IMF delegation arriving in March will conduct the six-month review of the ongoing loan program. The finance minister highlighted that Pakistan has recorded a surplus in its current account for seven months and emphasized the importance of structural reforms to address the underlying challenges of the economy.
Pakistan had formally requested around $1 billion in funding from the IMF in October last year to address climate change-related vulnerabilities. The country remains one of the most climate-vulnerable nations in the world, as identified by the Global Climate Risk Index.
The devastating floods of 2022, which scientists linked to climate change, affected at least 33 million people and resulted in over 1,700 deaths. The disaster placed immense strain on Pakistan's economy, already burdened by high debt, limiting its ability to respond effectively.
Pakistan's economy is gradually stabilizing under the $7 billion IMF Extended Fund Facility secured last year, but long-term recovery remains a challenge. The upcoming discussions with the IMF are expected to shape future economic policies and climate financing strategies.
