WASHINGTON — As global finance leaders gather in Washington for the 2025 Spring Meetings of the International Monetary Fund (IMF) and the World Bank, Pakistan is poised to request urgent economic support and increased climate financing to help navigate its ongoing financial and environmental challenges.
Finance Minister Muhammad Aurangzeb, who arrived in the U.S. capital on Sunday, is leading a high-level Pakistani delegation that includes State Bank Governor Jameel Ahmed, Finance Secretary Imdad Ullah Bosal, and other senior officials. The meetings, running from April 21 to 26, provide a critical platform for dialogue on sovereign debt, climate action, and reforms in the global financial system.
Key Goals: Debt Relief and Climate Funding
At the center of Pakistan’s agenda is securing support for its struggling economy, which remains burdened by mounting debt and tight fiscal space. According to the State Bank, the country faces external debt repayments of $30.6 billion in the coming months. With both domestic and foreign liabilities increasing, the space for development spending is rapidly shrinking.
Pakistan is also pushing for greater access to international climate finance. Despite being among the countries most vulnerable to climate change, Pakistan has struggled to mobilize sufficient funding for climate adaptation and mitigation efforts.
The World Bank estimates the country requires $7 to $14 billion annually for adaptation alone, though other assessments suggest this figure could be as high as $30 to $60 billion per year.
Climate Finance in the Spotlight
One of the key sessions of the meetings will be hosted by the Coalition of Finance Ministers for Climate Action, where economic growth and sustainable development will be discussed within the context of limited fiscal resources.
Recently, the IMF announced $1.3 billion in concessional climate funding for Pakistan through its Resilience and Sustainability Trust, aimed at supporting emissions reduction, adaptation efforts, and resilience against climate-related shocks.
IMF Agreement and Progress
Earlier this year, Pakistan secured a staff-level agreement with the IMF under a $7 billion Extended Fund Facility (EFF), approved in September 2024 for a 37-month period. The agreement led to the immediate release of $1 billion, with future disbursements tied to performance reviews.
The IMF has acknowledged Pakistan’s notable progress in stabilizing its macroeconomic outlook, easing inflation, improving financial conditions, and reinforcing its external account.
Global Pressure for Reform
This year’s meetings come amid growing calls for reform in how international financial institutions support developing nations. Civil society organizations, faith-based groups, and even Pope Francis have urged debt relief, warning that rising liabilities are hindering investments in climate resilience and sustainable development.
The World Bank’s 2024 International Debt Report revealed that since 2022, foreign private creditors have extracted around $141 billion more from developing countries than they have provided in new loans—highlighting the urgent need for systemic reform.
As the Spring Meetings unfold, Pakistan aims to use the global spotlight to advocate for both immediate economic relief and long-term financial mechanisms that can help it—and other developing countries—manage debt while building resilience to a changing climate.
