ISLAMABAD – International Monetary Fund (IMF) delegation arrived in Pakistan to start talks on climate funding, with South Asian nation expecting to receive between $1 billion and $1.5 billion under Extended Fund Facility.
Sharif led government seeks financial support to address growing challenges posed by climate change. Following initial discussions, a policy review will take place early next week to assess Pakistan’s performance under its existing $7 billion Extended Fund Facility (EFF).
The country’s Finance chief Muhammad Aurangzeb highlighted the global lender expressed willingness to provide the extra funding, as the country moves with tax reforms. He emphasized need for changes in the country’s tax system, acknowledging public distrust in the tax authority.
He further revealed that salaried individuals will soon be required to file their tax returns online by November, with employees from seven key sectors expected to participate.
Earlier, IMF delegation called for stricter monitoring of Pakistan’s public finance management, governance, and budget utilization, stressing the need for increased transparency and modernized oversight mechanisms. As part of their engagement, the IMF team is set to work closely with key ministries, including planning, finance, climate change, petroleum, and water resources, along with the Federal Board of Revenue and disaster management agencies.
IMF’s resident representative confirmed that the engagement will continue over the next three weeks, with IMF staff team scheduled to visit Pakistan between early and mid-March to conduct the first review of the EFF program and discuss Pakistan’s request for assistance under the Resilience and Sustainability Facility (RSF).
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