Two IMF Delegations to Visit Pakistan for $2.5 Billion Loan Talks

Two IMF delegations are set to visit Pakistan this month for negotiations over a $2.5 billion loan. The first delegation, arriving on February 24, will focus on a $1.5 billion concessional loan aimed at addressing climate change losses in Pakistan.

The loan discussions stem from Pakistan’s $30 billion losses due to climate change two years ago. During Prime Minister’s meeting with IMF Managing Director Kristalina Georgieva, it was decided that the IMF will support Pakistan in reducing climate-related economic damage. Talks for the climate loan program are expected to continue until early March.

In March, another IMF mission will visit to conduct an economic performance review for the $1 billion next tranche of the $7 billion loan program. The IMF will evaluate Pakistan’s economic performance from July to December before releasing the next installment.

The upcoming loan negotiations will be crucial for Pakistan’s economic stability and its efforts to recover from climate change-induced financial setbacks.