ISLAMABAD – The International Monetary Fund (IMF) would provide $1.3 billion to Pakistan under its climate financing programme.
IMF Director of Communications Julie Kozack said that the discussions were held with Pakistan regarding separate funding for the Extended Fund Facility (EFF) programme and climate financing. She further stated that the negotiations on climate financing with Pakistan were successful, and under this initiative, Pakistan would receive $1.3 billion over a period of 28 months.
Pakistan’s 37-month Extended Fund Facility programme was finalized in September, under which the country is set to receive $7 billion in installments.
Meanwhile, the IMF would now oversee Pakistan’s federal budget for the fiscal year 2025-26.
An important IMF delegation is scheduled to visit Pakistan on April 4 to finalize the budget framework.
Earlier, the global money lender had approved reduction in the electricity tariff.
“The IMF has allowed to reduce Rs1 per unit in the electricity tariffs,” the IMF was quoted as saying. The international lender gave this approval in a bid to provide relief to the consumers.
This relief would be provided from the revenue obtained through the levy on captive power plants. A levy was imposed on the use of gas by captive power plants.
The federal government is also working on a relief package for electricity consumers, which will be announced after IMF approval.
It may be mentioned here that Pakistan and the International Monetary Fund (IMF) had reached a staff-level agreement, under which Pakistan gained access to up to one billion dollars under the Extended Fund Facility (EFF).
The IMF had mentioned that inflation in Pakistan is at its lowest level since 2015, the country’s economic situation has improved, and further improvement is expected.
Under this program, the total amount Pakistan will receive will be 2 billion dollars.
Economic stability has come to Pakistan, says PM day after IMF-Pakistan agreement
