Pakistani authorities are mulling options to augment the upcoming International Monetary Fund (IMF) bailout package from $7.5 to $8 billion by applying for climate finance along with Extended Fund Facility (EFF).
If the arrangement is finalised, Pakistan could increase the size of the programme from $6 billion under EFF to $7.5 or $8 billion considering the specific quota available to Islamabad under Special Drawing Rights (SDRs).
Back then the Washington-based lender had pointed out that the SBA was a short-term programme and hinted that the possibility could be considered next time.
The Pakistani authorities are now considering following a similar path to Bangladesh to increase the size of the upcoming programme, and climate finance would be explored to augment the Extended Fund Facility (EFF) programme.
There is one IMF instrument under the Resilience and Sustainability Facility (RSF) which provides affordable long-term financing to countries undertaking reforms to reduce risks to prospective balance of payments stability, including those related to climate change and pandemic preparedness.
