Islamabad, February 24, 2025: A four-member technical delegation from the International Monetary Fund (IMF) met with Pakistani officials on Monday to discuss climate financing and green budgeting initiatives.
According to sources, talks focused on climate spending tagging, tracking, and reporting at both federal and provincial levels. A major point of discussion was a proposal to introduce a carbon levy in the 2025-26 fiscal budget, with the IMF providing recommendations on its framework.
Discussions also covered electric vehicles (EVs) and related subsidies, with the IMF delegation expected to propose strategies for expanding green budgeting in the upcoming budget.
The IMF team was briefed on Pakistan’s federal and provincial climate initiatives, and sources said they praised the country’s efforts to meet its climate change mitigation commitments.
In addition to federal discussions, the IMF delegation engaged with provincial governments to explore climate change mitigation strategies. Separate meetings were held with officials from Khyber Pakhtunkhwa (KP) and Sindh, including representatives from their finance, climate change, and planning commissions.
Discussions focused on green budgeting frameworks and climate change tracking and reporting mechanisms. The delegation is set to meet officials from Punjab and Balochistan tomorrow to continue consultations on sustainable climate policies.
Pakistan is expecting $1.5 billion in financial assistance to combat climate change. The ongoing negotiations with the IMF aim to strengthen the country’s resilience against environmental challenges and ensure the effective utilization of climate funds.
