Concerns voiced over failure to develop projects for resources secured under IMF’s RSF

ISLAMABAD: Pakistan risks undermining its international credibility and future access to climate financing after failing to effectively utilize climate-related funds, as well as failing to develop projects for resources secured under the International Monetary Fund’s (IMF) Resilience and Sustainability Facility (RSF).

These concerns were echoed during a meeting of the National Assembly Standing Committee on Finance and Revenue, which was held under the chairmanship of Syed Naveed Qamar here on Saturday.

The committee members express serious concerns that the country has yet to develop projects for resources secured under RSF as well as where these money was spent.

The committee was informed that while Pakistan had received inflows, including around USD 400 million under the IMF’s climate-linked RSF arrangement, the absence of viable climate projects could have serious long-term consequences and discourage future climate financing from international partners.

The committee made these observations while reviewing rules related to the newly introduced Climate Support Levy and Petroleum Development Levy (PDL) legislation.

Committee members stressed that Pakistan’s inability to demonstrate effective utilization of climate-related resources could damage the country’s image at a time when it is seeking greater international support to address climate vulnerabilities. The committee also expressed serious concern over the non-payment of petroleum levies by certain companies.

MNA Shahida Akhtar Ali revealed that a petroleum refinery had failed to pay Rs40 billion in Petroleum Development Levy (PDL) along with Rs33 billion in late payment surcharge for six years. She urged the government to introduce stringent legal provisions in the Finance Bill 2026-27 to prevent companies from defaulting on PDL payments.

Chairman of the panel said the government must establish a legal framework ensuring that no company or refinery can default on Petroleum Development Levy or Climate Support Levy obligations.

Officials from the Ministry of Petroleum informed the parliamentary body that there were concerns that some companies could become PDL defaulters in the future if adequate safeguards were not put in place. MNA Javed Hanif said companies collecting levies from consumers and failing to deposit them in the national exchequer did not deserve any concession.

“Motorists pay these levies for the country. We will not allow any company to become a defaulter of national revenues,” he said.

Naveed Qamar directed the relevant authorities to develop a robust monitoring mechanism for collection of both levies in the next fiscal year and emphasized that rules must ensure 100 percent transfer of the proceeds to the federal consolidated fund.

Copyright Business Recorder, 2026