Pakistan “asks” the IMF for an additional $2 billion climate fund.

The proposal will reportedly be made by Finance Minister Muhammad Aurangzeb during the annual IMF meetings later this month, according to sources.

This occurred when the IMF delayed approving Pakistan’s first request for climate funding, according to sources.

According to sources, Pakistan has moved to address fiscal sustainability and raise money, enacting the FY24 budget, which creates a primary surplus of about 0.4 percent of GDP. Additionally, the government has pledged to control inflation and maintain an exchange rate set by the market.

In addition, the State Bank representatives and the Secretary of Finance will be present at the IMF sessions with the Finance Minister. The aim is for the sessions to end by October 26th.

Continue reading: Pakistan receives IMF loan in its first installment.

Pakistan had earlier on September 27 asked the IMF for an additional $1.5 billion loan to help fight the effects of climate change in the nation.

Prime Minister Shehbaz Sharif spoke on the urgent need for action in Pakistan to manage climate change during a meeting with IMF Managing Director Kristalina Georgieva.

The financing will assist Pakistan’s Climate Resilience and Sustainability Facility, which seeks to advance sustainable development and economic stability within the nation.

It is significant to note here that Pakistan’s 37-month Extended Fund Facility (EFF) agreement, worth roughly US$7 billion, was approved by the Executive Board of the International Monetary Fund (IMF) on September 25.

Achieving sustainable public finances, lower inflation, and stronger external buffers are among the main policy objectives of the 37-month Extended Fund Facility arrangement, which is intended to promote Pakistan’s economic growth and stability.