Financial Aid Aims to Strengthen Economy and Address Climate Change Impact
Key Takeaways:
i) The IMF approved a $1.3 billion loan for Pakistan to address climate change under its Resilience and Sustainability Facility.
ii) This loan is part of a broader effort that includes releasing $1 billion from an existing $7 billion bailout, demonstrating the IMF’s confidence in Pakistan’s economic reforms.
iii) Pakistan is recognized for its progress in tax equity, monetary stability, and climate resilience.
Islamabad, Pakistan – April 18, 2025 – The International Monetary Fund (IMF) has approved a $1.3 billion loan for Pakistan, specifically aimed at bolstering the country’s efforts to combat climate change. This financial assistance is part of a 28-month agreement under the IMF’s Resilience and Sustainability Facility (RSF).
In addition to this climate-focused loan, the IMF has also reached a staff-level agreement to release $1 billion from Pakistan’s existing $7 billion bailout package. This brings the total immediate financial support to $2 billion. According to the IMF, these agreements reflect Pakistan’s significant advancements in key economic reforms. The IMF specifically cited improvements in tax equity, monetary stability, and the nation’s commitment to building climate resilience.
This brings the total immediate financial support to $2 billion. According to the IMF, these agreements reflect Pakistan’s significant advancements in key economic reforms.
The IMF’s decision highlights Pakistan’s proactive steps towards economic reform and its dedication to addressing the growing challenges posed by climate change. Pakistan is among the countries most vulnerable to climate change, facing threats to its economy and infrastructure. The World Bank estimates that Pakistan needs around $348 billion in investment by 2030 to effectively combat climate change. Pakistan requires $348bn investment by 2030 to address climate change, says World Bank.
This financial support from the IMF is expected to provide a crucial boost to Pakistan’s efforts in adapting to and mitigating the impacts of climate change, while also strengthening its overall economic stability.
