Pakistan secures $1.3b in climate financing from IMF
International Monetary Fund (IMF) Director of Communications Julie Kozack said on Friday that Pakistan will receive $1.3 billion in climate financing.
Speaking at a press conference, Kozack highlighted that discussions with Pakistan covered both the Extended Fund Facility (EFF) and climate financing, Express News reported.
Kozack further mentioned that Pakistan's 37-month EFF program, approved in September of the previous year, remains in place.
Earlier on Wednesday, Prime Minister Shehbaz Sharif confirmed the new $1.3 billion deal with the IMF during a Cabinet meeting in Islamabad.
Subject to approval by the IMF board, Pakistan will receive $1.3 billion under a new climate resilience loan program, which will span 28 months.
Additionally, a staff-level agreement will release $1 billion for Pakistan under the $7 billion bailout program that was agreed upon last year.
Nathan Porter, IMF mission chief to Pakistan, stated in a press release that the staff-level agreement covers both the first review of the 37-month Extended Fund Facility (EFF) and the new 28-month arrangement under the IMF's Resilience and Sustainability Trust. The total access to funds under the new arrangement amounts to around $1.3 billion over the next 28 months.
Porter also noted that Pakistan has made significant progress in restoring macroeconomic stability and rebuilding confidence despite challenging global conditions over the past 18 months.
Once approved by the IMF board, Pakistan will have access to about $1 billion under the EFF, bringing the total disbursements under the program to approximately $2 billion.
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Business Recorder
15 hours ago
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It also takes into account risks of transfer and convertibility restrictions being imposed. Moody's further stated Pakistan's external position has continued to strengthen over the past year. 'We expect further gradual improvements as progress in reform implementation under the IMF program supports financing from bilateral and multilateral partners. In turn, this contributes to continued increases in the sovereign's foreign exchange reserves, albeit from still fragile levels,' Moody's added. Moody's said Pakistan fully met its external debt obligations and added to its foreign exchange reserves in fiscal year 2025 (ending June 2025). Reserves rose to $14.3 billion as of 25 July 2025, equivalent to about ten weeks of imports. This compares with $9.4 billion at the time of its last rating action in August 2024, and is about triple the level compared to end-June 2023. The agency stated that Pakistan successfully completed the first review of the IMF programme on schedule, unlocking a $1 billion disbursement from the IMF in May 2025. It also secured a $1 billion commercial loan in June 2025, with a $500 million policy-based guarantee by the Asian Development Bank (ADB). Moody's expect Pakistan to fully meet its external debt obligations for the next few years, contingent on steady progress on reform implementation and timely completion of IMF reviews. It stated the sovereign has unlocked new sources of financing with a 28-month arrangement under the IMF Resilience and Sustainability Facility (RSF) worth about $1.4 billion and a ten-year country partnership framework with the World Bank for fiscal year 2026-2035, with an indicative financing envelope of $20 billion. Moody's pointed out that Pakistan's external position remains fragile. 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Business Recorder
15 hours ago
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Express Tribune
a day ago
- Express Tribune
Moody's lifts Pakistan's rating to ‘Caa1' on stronger external finances
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