IMF urges Pakistan to invest Rs1.2tr a year in climate resilience

The International Monetary Fund (IMF) has urged Pakistan to invest one per cent of its GDP annually — equivalent to over Rs1.24 trillion based on current estimates — in climate resilience and adaptation reforms to prepare for recurring extreme weather events, particularly floods, and sustain economic growth and reverse inequalities. In a special policy advisory, the IMF noted that ongoing reforms under the Extended Fund Facility (EFF) — including fiscal, labour market, trade, and state-owned enterprise (SOE) reforms — could boost Pakistan’s growth by 2pc over five years while significantly reducing inequality. The Fund also highlighted that proactive investment in climate-adaptive infrastructure could reduce the negative growth impact of a natural disaster shock by one-third while ensuring a quicker and more complete recovery.