Pakistan's economic delegation, led by the finance minister, met with International Monetary Fund (IMF) Deputy Managing Director Kenji Okamura during the annual meetings of the IMF and World Bank.
The Pakistani delegation requested climate financing of $1.5 to $2 billion to help mitigate the impacts of environmental changes in the country. In response, the IMF officials assured that the request would be considered.
The meeting, attended by key officials, including the finance secretary and governor of the State Bank of Pakistan, covered a range of economic issues. Sources said the Pakistani side informed the IMF officials of expanding the tax base, aligning provincial agricultural income taxes with federal taxation, balancing subsidies, and exploring ways to reduce energy prices to increase financial resources.
Actions related to the acceleration of private sector development, as well as the continuation of prudent policies in financial and external sectors, were also discussed.
The IMF Deputy MD emphasized the importance and need for Pakistan to continue implementing reforms as recommended by the IMF, highlighting their importance for long-term economic stability.
In a separate meeting with IMF Director Jihad Azour, the Pakistani delegation expressed gratitude for the IMF's support in stabilizing Pakistan’s economy through the approval of the $7 billion Extended Fund Facility (EFF). Azur reiterated the importance of maintaining reforms, financial stability, and making efforts to increase revenues.
The Pakistani economic team also held discussions with representatives from Alvarez and Marsal in Washington, DC to explore methods of accessing international capital markets and engaging with external creditors to secure necessary funds.
Pakistan is seeking urgent climate financing to address the increasing challenges posed by climate change, which has severely impacted its agricultural sector and overall economy.
