IMF Urges Pakistan to Shield Its Economy from Climate Disasters

The International Monetary Fund (IMF) has emphasized that Pakistan must prioritize climate resilience in its national budget, warning that the country faces mounting risks from worsening environmental challenges. Speaking at the Sustainable Development Conference organized by the Sustainable Development Policy Institute (SDPI), IMF Representative in Pakistan Mahir Binici said that climate change is continuously affecting Pakistan, making it essential for the government to allocate greater resources toward adaptation and mitigation. Binici confirmed that the IMF will provide $1.4 billion under the Resilience and Sustainability Facility (RSF) loan program, which will remain available until 2027, to help Pakistan cope with the long-term impacts of climate change. He noted that Pakistan must integrate climate priorities into its development budget starting next fiscal year, focusing on projects that protect communities from climate-driven disasters. The IMF official also urged greater investment in water resource management and called for increased funding for climate programs at both federal and provincial levels. Welcoming recent policy initiatives, Binici praised Pakistan’s move to impose a carbon levy, describing it as a “positive and timely step” toward reducing emissions and promoting environmental sustainability. The IMF’s RSF program aims to assist vulnerable economies in adapting to climate risks, enhancing institutional capacity, and aligning fiscal policies with global sustainability goals.