Islamabad (Web Desk): A team from the International Monetary Fund (IMF) has arrived in Islamabad to hold talks with Pakistani officials about securing funding for climate-related projects and policies.
The four-member delegation will meet with both federal and provincial authorities to discuss ways to better track and manage climate funding, including green budgeting practices.
These discussions will take place until February 28, with a focus on assessing Pakistan's efforts in addressing climate change and securing the necessary financing.
A major topic on the agenda is the possibility of introducing a carbon tax in the federal budget for the 2025-26 fiscal year.
The IMF team will offer advice on how to implement this tax effectively. They will also discuss topics such as government subsidies, the promotion of electric vehicles, and expanding green budgeting measures.
Pakistani officials will update the IMF team on the country's ongoing climate initiatives and future plans to tackle environmental challenges.
The visit is part of broader efforts to help Pakistan align its financial policies with international climate goals, aiming to support sustainable economic growth.
Separately, the IMF team is also expected to return to Pakistan in early March to review progress on the $7 billion loan agreement, which will include further discussions on climate financing.
Finance Minister Aurangzeb mentioned that Pakistan hopes to secure between $1 billion and $1.5 billion in climate-related funding from the IMF.
In a previous round of meetings, the IMF team spoke with officials from Pakistan’s Auditor General, the Federal Board of Revenue (FBR), and the Securities and Exchange Commission (SECP).
These meetings focused on improving governance and tackling corruption, with particular attention paid to transparency in the public sector and the tax system.
Additionally, the IMF team learned about the digitalization of tax processes and efforts to make doing business in Pakistan easier.
The IMF also met with officials from the Ministry of Climate Change and the Ministry of Housing and Works.
