ISLAMABAD: Over a month after securing a $1.1 billion tranche from the International Monetary Fund (IMF) as part of the $7 billion Extended Fund Facility (EFF), the government is preparing to enter negotiations with the global lender once again, this time seeking $1 billion in climate financing.
IMF mission will review economic performance and budget targets achieved by the incumbent government after the Staff-Level Agreement materialised. The mission will also look into the ground realities before allocating funds for climate financing.
Sources said the government had assured the IMF to produce 60pc energy through alternative sources by 2030 which included 30pc from electric vehicles and banning imported coal for energy production. The government will deliberate on the National Clean Air Policy with the IMF.
IMF had agreed to the government’s proposal of spending 1pc of the Gross Domestic Product (GDP) on climate financing.
The talks will also include measures taken by the government under Green Mix Energy, Billion Tree Tsunami and National Adaptation Plan.
On the economic front, the IMF mission will review the tax targets achieved by the Federal Board of Revenue (FBR) and the Circular Debt Management Plan.
