Pakistan requests $1bn in IMF climate cash, sees reserves rising

Finance Minister Muhammad Aurangzeb announced that Pakistan has requested around $1 billion in funding from the International Monetary Fund to help mitigate climate risks for low and middle-income countries. The IMF has already agreed to a $7 billion bailout for Pakistan and has additional funding available through its Resilience and Sustainability Trust. Pakistan, being one of the most vulnerable countries to climate change, has suffered from recent disasters aggravated by global warming. The country is also exploring options for a Panda bond issuance in China’s capital markets and engaging with Middle Eastern banks for commercial loans. The goal is to diversify funding sources and improve the country’s credit rating. Pakistan’s foreign exchange reserves are expected to reach $13 billion by the end of March, which will aid in commercial lending and potentially improve its credit rating further.