KARACHI: An IMF official confirmed that the organization is not contemplating an increase in Pakistan’s $1.4 billion loan from the climate resilience fund, as the country evaluates the economic impacts of recent catastrophic floods.
Pakistan recently concluded a staff-level agreement with the IMF on its Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF). The RSF is a reform-focused initiative aimed at assisting Pakistan in adapting to recurrent and severe climate shocks. This makes Pakistan the first nation from the Middle East and Central Asia to benefit from the RSF program.
The IMF stated that pending Executive Board approval, Pakistan will receive $200 million under the RSF. Meanwhile, the country is assessing damage caused by heavy monsoon rains and floods that have claimed over 1,000 lives, destroyed 22,000 livestock, and ravaged over 2.2 million acres of crops since late June.
Responding to inquiries about increasing funding under the RSF program, Mahir Binici, the IMF’s country representative for Pakistan, clarified that no changes to the funding amount are currently being considered. Binici noted that Pakistan’s arrangement under the RSF was approved on May 9, 2025, with an allocation of $1.4 billion to support climate-related resilience efforts.
Discussing progress under the EFF program, Binici commended Pakistan’s authorities for showing commitment to reforms and significant efforts to achieve program targets. He underlined continued assessments of specific targets and commitments tied to the EFF-supported initiatives.
In September 2024, Pakistan secured a $7 billion bailout under the EFF program after prolonged negotiations aimed at stabilizing its fragile economy, replenishing reserves, and attracting foreign investment amid record inflation and devastating floods that have increased poverty rates.
The IMF cautioned last week that recent floods have dampened Pakistan’s economic prospects, particularly in agricultural sectors, potentially reducing FY26 growth to an estimated 3.3–3.5 percent.
