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.
