ISLAMABAD (PEN) : A four-member delegation from the International Monetary Fund (IMF) arrived in Pakistan on Monday to engage in crucial talks centered around climate financing. These discussions, set to take place between February 27 and 28, will bring together IMF officials with representatives from both federal and provincial governments to explore topics such as green budgeting, climate-related spending tagging, tracking, and reporting.
One of the key proposals under consideration is the introduction of a carbon levy in the upcoming fiscal year 2025-26 budget. The IMF team will review a preliminary draft of this proposal and offer their suggestions on its implementation. This carbon levy is seen as an important step toward aligning Pakistan’s fiscal policy with its environmental goals.
In addition to the carbon levy, the talks will address other climate-related initiatives, including incentives for electric vehicles and the potential for subsidies. The IMF delegation is expected to provide guidance on how Pakistan can expand its green budgeting practices in the forthcoming budget, which would help streamline financial support for climate action.
The first day of discussions will be specifically focused on countering climate change, with briefings on ongoing federal and provincial initiatives aimed at mitigating environmental impacts. The outcome of these negotiations could shape Pakistan’s approach to climate change, as the country seeks to navigate the challenges of financing a greener future while addressing immediate economic concerns.
This dialogue with the IMF underscores the growing importance of integrating environmental goals into national financial strategies. The decisions made during these talks could have far-reaching effects on how Pakistan approaches its climate commitments and how effectively it can tap into international support for sustainability efforts.
