IMF Urges Pakistan to Strengthen Climate Adaptation Measures
ISLAMABAD: The International Monetary Fund (IMF) has urged Pakistan to implement robust climate adaptation policies at both federal and provincial levels to mitigate the risks posed by natural disasters such as floods and droughts.
As part of its recommendations, the IMF advised strict regulations to prevent construction near water bodies, including rivers, nullahs, and forests. Additionally, the Fund emphasized the importance of energy-efficient building designs for both urban and rural areas.
This development came to light on Tuesday as a four-member technical team from the IMF continued discussions with federal and provincial authorities regarding Pakistan’s request for over $1 billion in climate resilience financing.
IMF Mission Visit
Meanwhile, official sources confirmed that an IMF staff delegation, led by Mission Chief Nathan Porter, is set to arrive in Islamabad on March 3. The team will conduct a two-week review of Pakistan’s performance under the $7 billion Extended Fund Facility (EFF), with the evaluation expected to conclude by March 15.
According to sources, the IMF’s technical mission under the Resilience and Sustainability Facility (RSF) stressed the need to integrate climate adaptation into public investment strategies, including those of state-owned enterprises. The team underscored the importance of shifting the focus from post-disaster relief efforts to proactive disaster preparedness.
Discussions also covered Pakistan’s approach to ‘green budgeting’ and how financial and environmental data is shared between federal and provincial governments. The mission was briefed on disaster risk management strategies, environmental pollution control, and mechanisms for tracking and monitoring green investments.
The Pakistani government informed the delegation that new building codes had been developed and recently shared with provincial authorities for implementation.
Concerns Over Encroachments
Meanwhile, the Senate Standing Committee on Water Resources voiced serious concerns over illegal encroachments along rivers and waterways.
During a meeting led by Senator Shahadat Awan, the Ministry of Water Resources presented data from Suparco, which revealed that major encroachments in Punjab had not been removed since August 2024. The report identified 153 encroachments in the Sargodha Irrigation Zone and 676 in the Multan Irrigation Zone.
Although a Federal Flood Commission (FFC) representative claimed that all encroachments had been removed prior to August 2024, the commission failed to provide supporting evidence.
The committee directed the FFC and the Ministry of Water Resources to coordinate with provincial authorities and ensure the removal of encroachments within a month. The panel warned that failure to act before the upcoming monsoon season would be considered a criminal offense, with legal consequences for those responsible.
IMF’s Climate Resilience Recommendations
The IMF has urged Pakistan to identify critical infrastructure, including energy, transportation, communication, and healthcare facilities, that are vulnerable to climate-related disasters such as floods, heatwaves, and cyclones. The Fund also recommended sector-specific contributions to climate change mitigation, with clear adaptation targets and investment plans.
To secure additional financing under the RSF, Pakistan must integrate climate resilience into sectoral planning, project preparation, and future urban development guidelines. The RSF provides long-term, low-interest financing, with a 30-year repayment period, including a 10-year grace period.
In October 2023, Pakistan formally requested the IMF to supplement its $7 billion EFF with an additional $1.2 billion under the RSF.
The IMF has already suggested that Pakistan allocate 1% of its GDP annually—approximately Rs1.24 trillion—towards climate resilience and adaptation. The Fund emphasized that such investments could reduce the economic impact of climate-related disasters and accelerate post-disaster recovery.
According to the IMF, a 1% GDP investment in climate adaptation infrastructure would enhance Pakistan’s resilience and cushion the economy against climate shocks.
