IMF team lands in Pakistan for climate finance talks

A technical team of the International Monetary Fund (IMF) arrived in Pakistan on Monday to start negotiations for climate financing under its Resilience and Sustainability Fund (RSF).

The IMF delegation of four is due to sit with federal and provincial representatives to discuss issues such as green budgeting, climate expenditures, and the tagging, tracking, and reporting of these spends.

The IMF delegation is also likely to discuss Pakistan's climate change policy. The IMF has in recent years become more concerned with climate change and has encouraged governments to make efforts to lower greenhouse gas emissions.

Pakistan is particularly vulnerable to climate change. The nation has seen several severe weather events over recent years, including floods, droughts, and heatwaves.

Sources suggest the talks will also involve recommendations on imposing a carbon levy in the 2025-26 financial year's budget. The IMF team will deliver preliminary drafts and suggestions for instituting the carbon levy.

The discussions of the IMF delegation, which will last until February 28, will mainly revolve around climate change initiatives. The agenda features negotiations over the imposition of carbon levies, incentives for electric vehicles, and how to increase green budgeting in the next budget.

On Monday, the IMF delegation will give extensive briefings on climate change programs to both federal and provincial governments. These meetings are part of an overall strategy to harmonize Pakistan's climate policy with international standards and obtain funds to meet the country's economic development needs.