IMF reveals new climate, EFF funding for Pakistan

March 28, 2025 (MLN): Pakistan will receive $1.3 billion in climate financing and $1bn under the Extended Fund Facility (EFF), revealed IMF Director of Communications Julie Kozack.

Speaking at a press conference, Kozack highlighted that discussions with Pakistan covered both the EFF and climate financing.

She further mentioned that Pakistan’s 37-month EFF program, which was approved in September of the previous year, remains in place.

Earlier on Wednesday, Prime Minister Shehbaz Sharif confirmed the new $1.3bn deal with the IMF during a Cabinet meeting in Islamabad.

Subject to approval by the IMF board, Pakistan will receive $1.3bn under a new climate resilience loan program, which will span 28 months, as per the press release.

Additionally, a staff-level agreement will release $1bn for Pakistan under the $7bn bailout program that was agreed upon last year.

IMF mission chief to Pakistan, Nathan Porter, stated in a press release that the staff-level agreement covers both the first review of the 37-month EFF and the new 28-month arrangement under the IMF’s Resilience and Sustainability Trust.

The total access to funds under this new arrangement amounts to approximately $1.3bn over the next 28 months.

Porter also noted that Pakistan has made significant progress in restoring macroeconomic stability and rebuilding confidence despite challenging global conditions over the past 18 months.

Once approved by the IMF board, Pakistan will have access to about $1bn under the EFF, bringing total disbursements under the program to approximately $2bn.

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