Wed Mar 26 07:06:29 UTC 2025: **IMF Approves $1.3 Billion Climate Loan for Pakistan, Releases Further Bailout Funds**
ISLAMABAD — The International Monetary Fund (IMF) has approved a $1.3 billion loan for Pakistan to tackle climate change, alongside releasing a further tranche of funds from an existing bailout package. This dual announcement follows a staff-level agreement on the first review of Pakistan’s $7 billion Extended Fund Facility (EFF) program.
The new $1.3 billion loan, disbursed over 28 months under the Climate Resilience and Sustainability Facility (CRSF), aims to support Pakistan’s climate change mitigation and adaptation efforts. Simultaneously, the IMF has approved the release of approximately $1 billion from the EFF, bringing total disbursements under that program to roughly $2 billion.
IMF Mission Chief for Pakistan, Nathan Porter, highlighted Pakistan’s progress in restoring macroeconomic stability and rebuilding confidence, despite global economic challenges. He noted a decline in inflation to its lowest level since 2015, improved financial conditions, and a strengthening of external balances. The IMF statement praised Pakistan’s reforms focused on tax equity, monetary stability, energy sector transformation, and climate resilience.
The combined financial assistance is expected to bolster Pakistan’s efforts to address climate change and manage its balance of payments. The agreement represents a significant step in supporting Pakistan’s economic recovery and resilience.
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