Pakistan Likely to Ask for Debt, Climate Financing At IMF-WB Meetings This Week

Pakistan will likely ask for more money to address its mounting debt and climate vulnerability at the 2025 Spring Meetings of the International Monetary Fund (IMF) and the World Bank Group this week. Finance Minister Muhammad Aurangzeb arrived in Washington on Sunday, leading a high-level delegation that includes State Bank of Pakistan Governor Jameel Ahmed, Finance Secretary Imdad Ullah Bosal, and other senior officials. According to the State Bank of Pakistan, Pakistan faces external debt repayments totaling $30.6 billion in the coming months. Rising domestic and foreign liabilities are further tightening fiscal space for development spending. Pakistan is also pursuing increased access to global climate finance. The World Bank estimates the country requires between $7 billion and $14 billion annually for climate adaptation. Other assessments suggest a need of up to $60 billion per year. The IMF recently approved $1.3 billion in concessional financing for Pakistan under its Resilience and Sustainability Trust. These funds are aimed at supporting emission reduction, climate adaptation, and resilience-building against climate shocks. The IMF has acknowledged Pakistan’s recent progress in stabilizing its economy, lowering inflation, improving financial conditions, and strengthening its external position. The spring meetings also coincide with growing international calls for comprehensive debt relief. Civil society organizations, faith-based groups, and even Pope Francis have urged major financial institutions to reform debt mechanisms, arguing that excessive liabilities are preventing developing nations from investing in sustainable development and climate resilience. The World Bank’s 2024 International Debt Report revealed that since 2022, foreign private creditors have received $141 billion more in repayments from developing countries than they have provided in new financing.