Pakistan Likely to Receive $200 Million in IMF Climate Financing

Finance Minister Muhammad Aurangzeb has said Pakistan is likely to receive around USD 200 million under the International Monetary Fund’s Resilience and Sustainability Facility, with the IMF Executive Board scheduled to meet on Friday.

Speaking at the Breathe Pakistan International Climate Change Conference 2026 in Islamabad, the finance minister said the funding would support Pakistan’s climate resilience and sustainability efforts as the country continues to deal with increasing environmental and economic challenges.

Aurangzeb said he recently attended the IMF and World Bank Spring Meetings in Washington, where finance ministers participating in the Coalition of Finance Ministers for Climate Action emphasized the need to move from discussions toward practical implementation and financing.

He said Pakistan is currently working on its Climate Prosperity Plan, with focus areas including EV-focused supply chains and promotion of green technologies. He also described the State Bank of Pakistan’s initiatives supporting green financing as a positive development.

The minister praised the National Disaster Management Authority for introducing AI-based early warning systems, saying the technology is helping authorities shift from reactive responses to proactive planning during climate-related emergencies.

Referring to the devastating 2022 floods, Aurangzeb said many international pledges made at the Geneva conference did not fully materialize because project financing was included in commitment figures. However, he said Pakistan managed to absorb the economic impact of the 2025 floods without relying entirely on foreign assistance due to improved macroeconomic stability.

He added that Pakistan currently has access to annual climate-related financing of around USD 600 million to USD 700 million through the World Bank and the Asian Development Bank.

The finance minister also said the government is pursuing additional green financing avenues, including Panda Bonds worth around USD 250 million denominated in Chinese yuan and local green Sukuk issuances.

Aurangzeb stressed the need to accelerate investment in renewable energy sources such as solar, wind, and hydropower to reduce dependence on imported fossil fuels, adding that the government is prepared to support the transition through subsidies and guarantees.