IMF Approves $1.3 Billion Loan to Aid Pakistan’s Climate Agenda

The IMF has sanctioned a $1.3 billion loan for Pakistan focused on climate change initiatives, alongside a review of an existing $7 billion package. This move supports Pakistan’s economic reforms in climate resilience, tax equity, and monetary stability, enabling access to an additional $2 billion.

The International Monetary Fund (IMF) has approved a $1.3 billion loan package for Pakistan to support its climate change initiatives. This decision coincides with a staff-level agreement regarding the first review of an already existing $7 billion loan, boosting the total disbursement to $2 billion.

This new agreement, lasting over 28 months under the Climate Resilience and Sustainability Facility, is designed to aid countries in tackling climate issues while adhering to necessary reforms.

The IMF's endorsement is seen as recognition of Pakistan's progress in economic reforms, focusing on climate resilience, monetary stability, and tax equity. This financial support arrives as Pakistan continues to navigate a challenging global economic environment.

(With inputs from agencies.)