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World Bank, IMF Warn on Pakistan’s Climate Costs, Pledge $20B Plan and $1.4B RSF

First RSF disbursement is due by December, with climate screening of major PSDP projects beginning next fiscal year.

Overview

  • World Bank officials cautioned that climate impacts could cut Pakistan’s GDP by 20–30% by 2050, noting $2.9 billion in recent flood losses and $30 billion in damages in 2022.
  • The World Bank outlined a $20 billion Country Partnership Framework to provide predictable, multi-sector financing over roughly two decades for resilience and development.
  • The IMF said its $1.4 billion Resilience and Sustainability Facility will complement Pakistan’s Extended Fund Facility, with the initial tranche expected by December.
  • All major Public Sector Development Programme infrastructure projects are set to undergo climate risk screening starting next fiscal year to strengthen investment decisions.
  • Experts urged $8–10 billion in annual adaptation spending, and the UNDP called for stronger partnerships and financing to turn plans into implementable projects.