The International Monetary Fund (IMF) has made Pakistan’s access to $1.3 billion in climate financing conditional on the successful implementation of its $7 billion Extended Fund Facility (EFF) program, according to Finance Ministry sources.
The climate funds will be released in installments, with disbursements tied to the completion of six-monthly economic reviews under the main EFF program, officials told ProPakistani on condition of anonymity.
“Each successful review will unlock not only the next tranche of economic support but also the corresponding climate financing allocation,” a senior Finance Ministry official explained.
The IMF Executive Board is expected to approve the funding package within the next four to six weeks, though sources cautioned that the timeline could be extended due to the Fund’s upcoming annual spring meetings.
The EFF program spans 37 months and requires periodic performance reviews to ensure Pakistan meets agreed economic targets and reforms. The climate financing component will run for a shorter period of 28 months, according to the sources.
This arrangement represents a new approach by the IMF, directly linking climate resilience funding to broader economic reform performance, reflecting the growing integration of climate considerations into international financial assistance programs.
