Pakistan Likely to Ask for Debt, Climate Financing At IMF-WB Meetings This Week
At this week’s 2025 Spring Meetings of the World Bank Group and the International Monetary Fund (IMF), Pakistan is expected to request additional funding to manage its growing debt and climate vulnerability.
Leading a high-level group that includes Finance Secretary Imdad Ullah Bosal, State Bank of Pakistan Governor Jameel Ahmed, and other senior officials, Finance Minister Muhammad Aurangzeb arrived in Washington on Sunday.
The State Bank of Pakistan estimates that in the upcoming months, Pakistan would have to repay $30.6 billion in external debt. Fiscal flexibility for development spending is becoming increasingly constrained due to rising domestic and foreign liabilities.
Additionally, Pakistan is working to gain more access to international climate funds. According to World Bank projections, the nation needs between $7 billion and $14 billion a year to adapt to climate change. According to other estimates, up to $60 billion is required annually.
Through its Resilience and Sustainability Trust, the IMF recently authorized $1.3 billion in concessional credit for Pakistan. Supporting emission reduction, climate adaptation, and resilience-building against climate shocks are the goals of these funds.
Pakistan’s recent achievements in stabilizing its economy, reducing inflation, enhancing financial conditions, and fortifying its external position have been recognized by the IMF.
The growing global calls for comprehensive debt relief also align with the spring summits. Major financial institutions have been challenged to change their debt arrangements by civil society organizations, religious organizations, and even Pope Francis, who has stated that huge liabilities are keeping developing countries from making investments in climate resilience and sustainable development.
According to the World Bank’s 2024 International Debt Report, since 2022, developing nations have repaid $141 billion more to private creditors than they have contributed to new loans.
