IMF Urges Pakistan to Adopt Stringent Climate Adaptation Plans

The International Monetary Fund (IMF) has called upon Pakistan to enforce rigorous climate adaptation strategies both federally and provincially. This initiative is essential to bolster resilience against natural disasters spurred by extreme weather patterns, such as floods and droughts, which have become increasingly prevalent.

A technical team from the IMF has suggested stringent regulations to prevent construction activities near rivers, streams, other waterways, and forest areas. In conjunction, there is an emphasis on developing energy-efficient infrastructure in both urban and rural localities.

This development arose during discussions with Pakistan’s government as the country seeks over $1 billion in additional funding dedicated to climate resilience initiatives. A larger IMF delegation is expected to review Pakistan’s performance under the $7 billion Extended Fund Facility (EFF) beginning in early March.

The climate financing technical mission, working within a Resilience and Sustainability Facility (RSF), highlighted the imperative for climate adaptation to be integrated into public investment strategies at all levels of government and within state-owned enterprises. The focus has expanded from rescue and rehabilitation post-disaster to a more proactive disaster risk management approach.

Conversations have included ‘green budgeting’ practices, demonstrating how federal and provincial governments are exchanging information and resources to address environmental challenges. The existing framework for disaster risk management, water and air pollution, as well as the monitoring of green budgets, was thoroughly reviewed and assessed.

New building regulations have been crafted and shared with provincial authorities to enhance climate resilience. However, concerns persist, notably in the Senate Standing Committee on Water Resources, about enduring encroachments along critical waterways which are integral in disaster prevention.

Alarmingly, significant encroachments remain in Punjab’s irrigation zones, as indicated by satellite data, although some government sources assert otherwise. The Federal Flood Commission (FFC) and Ministry of Water Resources have been tasked with collaborating with provincial bodies to address these encroachments swiftly before the upcoming monsoon season. The failure to do so may attract severe legal consequences.

As part of its recommendations, the IMF has urged Pakistan to earmark key infrastructure assets vulnerable to climate disaster in sectors like energy, transport, communications, and health. It also advocates setting distinct sector-specific goals for climate change mitigation alongside robust adaptation targets and investment blueprints.

To access additional financing through the RSF, Pakistan needs to integrate climate resilience and adaptability into its sectoral planning and project preparation phases. This entails incorporating climate considerations into future building regulations and urban development guidelines.

The RSF offers extended financing options to countries committing to high-quality climate adaptation reforms. Such funding, repayable over three decades with a substantial grace period, is typically more favorable compared to the terms under EFF.

The IMF advises Pakistan to allocate approximately 1% of its GDP annually, about Rs1.24 trillion, towards climate adaptation and resilience efforts. This investment is necessary to prepare for the recurrent cycles of extreme weather, especially floods, while promoting economic progress and addressing social inequalities.

The IMF supports the notion that investments in climate-adaptive infrastructure can diminish the adverse impact of natural disasters substantially, facilitating a faster and more comprehensive recovery process. A consistent investment strategy would enhance Pakistan’s ability to withstand and recover from climate disturbances.