Talks on $1.5bn climate resilience funding begin
- Talks will continue until February 28 and cover carbon levies, electric vehicles, subsidies
ISLAMABAD: A technical mission of the International Monetary Fund (IMF) on Monday begun crucial talks regarding Pakistan’s request for around USD 1.5 billion in additional financing to combat climate change.
The discussions come as part of the IMF’s Resilience and Sustainability Facility (RSF) arrangements, which provide long-term financing for climate resilience projects.
The IMF technical team is expected to hold meetings with key ministries, including Planning, Finance, Climate Change, Petroleum, and Water Resources, as well as the Federal Board of Revenue (FBR), disaster management agencies, and provincial governments.
$1bn climate finance talks next week
Official sources revealed that the federal government, Khyber Pakhtunkhwa and Sindh governments held meetings with the Fund team on Monday, while Punjab and Balochistan governments would hold a meeting on Tuesday (today). Official said that negotiations were held on green budgeting, climate spending, tagging, tracking, and reporting.
The government is reportedly considering imposing a carbon levy for the next fiscal year 2025-26, with initial proposals set to be discussed in the next round of negotiations.
The talks, which will continue until February 28, will also cover carbon levies, electric vehicles, and subsidies. Negotiations will focus on climate change initiatives, with federal and provincial representatives briefing the IMF delegation on their respective climate action plans.
Copyright Business Recorder, 2025
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