Pakistan has reached a staff-level agreement with the International Monetary Fund (IMF) concerning the first review of its Extended Fund Facility (EFF) and a new Resilience and Sustainability Facility (RSF) arrangement. This agreement, pending approval from the IMF’s Executive Board, grants Pakistan access to approximately $1.3 billion under the RSF over a 28-month period, aimed at bolstering climate resilience and sustainability initiatives. Additionally, it enables the disbursement of about $1 billion under the EFF, bringing total disbursements to around $2 billion.

The RSF is designed to assist Pakistan in addressing vulnerabilities related to climate shocks by supporting efforts to build resilience against natural disasters and improve climate adaptation. Specific objectives include enhancing public investment planning, improving water usage efficiency, and promoting green energy and mobility.

Despite these advancements, the IMF has cautioned about elevated risks, particularly concerning global economic conditions and climate-related challenges. The organization underscores the necessity for Pakistan to persist with its reform agenda to ensure long-term growth and stability.