Pakistan Seeks $1 Billion IMF Climate Aid Amid Economic Challenges

Pakistan is seeking approximately $1 billion in funding from the IMF's Resilience and Sustainability Trust to mitigate climate risks. The nation, vulnerable to climate change, faced significant damage from 2022 floods. It also plans to issue Panda bonds and engage with Middle Eastern banks for financial support.

Pakistan has officially requested around $1 billion in funding from the International Monetary Fund's Resilience and Sustainability Trust, aimed at assisting low and middle-income countries in managing climate risks. Finance Minister Muhammad Aurangzeb disclosed this at the IMF/World Bank autumn meetings in Washington.

The IMF previously provided a $7 billion bailout package to Pakistan and has more funds available through the RST, which provides long-term concessional financing for climate initiatives, including adaptation and transitioning to cleaner energy.

Pakistan, significantly affected by the 2022 floods exacerbated by climate change, is also in discussions with the Asian Infrastructure Investment Bank to enhance credit for an upcoming Panda bond issuance, aimed at diversifying its funding base in China's capital markets.

(With inputs from agencies.)