During the annual meetings of the IMF and World Bank, Pakistan’s economic delegation, led by the finance minister, met with IMF Deputy Managing Director Kenji Okamura. The delegation requested $1.5 to $2 billion in climate financing to address the country’s environmental challenges. IMF officials indicated that they would consider this request.
The meeting, which included key officials such as the finance secretary and the governor of the State Bank of Pakistan, addressed various economic issues. The Pakistani side discussed plans to expand the tax base, align provincial agricultural income taxes with federal rates, balance subsidies, and explore ways to lower energy prices to enhance financial resources.
Additionally, the discussion covered the acceleration of private sector development and the continuation of sound policies in both financial and external sectors. Okamura stressed the importance of ongoing reforms for Pakistan’s long-term economic stability.
In a separate meeting with IMF Director Jihad Azour, the Pakistani delegation expressed appreciation for the IMF’s support, particularly the approval of the $7 billion Extended Fund Facility (EFF). Azour reiterated the necessity of maintaining reforms, ensuring financial stability, and increasing revenue efforts.
The Pakistani team also engaged with representatives from Alvarez and Marsal in Washington, DC, to explore options for accessing international capital markets and working with external creditors for needed funds. Pakistan is urgently seeking climate financing to tackle the significant impacts of climate change on its agricultural sector and overall economy.
