Pakistan Seeks $1 Billion IMF Climate Financing

Pakistan's finance minister announced a formal request for $1 billion in IMF funding aimed at mitigating climate risks. This aligns with the $7 billion bailout already secured and leverages the IMF's Resilience and Sustainability Trust. Talks with investment banks for Panda bonds in China's markets are underway.

Pakistan is actively pursuing an additional $1 billion in climate-related funding from the International Monetary Fund's Resilience and Sustainability Trust, according to its finance minister. This initiative aims to address climate risks as part of the existing $7 billion bailout from the IMF.

Finance Minister Muhammad Aurangzeb revealed this in an interview at the IMF/World Bank autumn meetings in Washington. The minister expressed optimism about Pakistan's candidacy for this special IMF facility, highlighting the nation's vulnerability to climate change impacts, especially following devastating floods in 2022.

In addition, Pakistan is negotiating on issuing Panda bonds in China's capital markets, seeking credit enhancement from institutions, including the Asian Infrastructure Investment Bank. The goal is to diversify its funding sources despite economic challenges and improve its bond ratings.

(With inputs from agencies.)