Pakistan Eyes $8 Billion IMF Loan, Explores Climate Finance Augmentation.

Pakistani authorities are considering increasing the upcoming IMF bailout package from $7.5 billion to $8 billion by leveraging Climate Finance in conjunction with the Extended Fund Facility (EFF). Discussions about increasing the program's size took place during the finalization of the previous Standby Arrangement (SBA) program in June 2023, but the IMF deferred the request. Pakistan is now exploring avenues to integrate climate finance into the EFF program, drawing inspiration from Bangladesh's approach. The augmentation of the IMF program could potentially increase to $7.5 or $8 billion, taking into account Pakistan's quota available under Special Drawing Rights (SDRs). Pakistan's recent approval of the Public Investment Management Assessment (PIMA) framework, including Climate-PIMA, demonstrates its commitment to improving public investment management to support economic growth and climate resilience. The exploration of climate finance augmentation alongside IMF support reflects Pakistan's proactive approach to addressing financial needs while prioritizing sustainable development goals. [Extracted from the article]