IMF calls for strict climate adaptation plans – Pakistan

• Recommends measures to prevent construction near waterways, forests
• Seeks plans for energy-efficient buildings in urban, rural areas
• Senate panel raises concerns over encroachments in riverbeds

ISLAMABAD: The Interna­tional Monetary Fund (IMF) has urged Pakistan to prioritise climate adaptation measures at federal and provincial levels to build resilience against natural disasters triggered by extreme weather events, including floods and droughts.

The team has recommended stringent measures to prevent construction near rivers, nullahs, other waterways and forests, alongside plans for energy-efficient buildings in urban and rural areas.

This emerged on Tuesday as a four-member technical mission of the Fund continued discussions with federal and provincial governments to prepare for the country’s request for over $1 billion in additional financing for climate resilience.

Meanwhile, official sources confirmed that a nine-member staff team of the IMF led by Mission Chief Nathan Porter would arrive at Islamabad on March 3 for a two-week-long review of Pakistan’s performance under the $7bn Extended Fund Facility (EFF). The mission is tentatively scheduled to wrap up its first biannual review by March 15.

According to sources, the technical mission on climate financing under a Resilience and Sustain­ability Facility (RSF) emphasised the need for climate adaptation measures to be an integral part of public investment strategies, not only at federal and provincial levels but also within state-owned entities. It stressed that disaster risk management should focus more on preparedness than on rescue and rehabilitation.

The visiting mission discussed how the federal and provincial governments were doing ‘green budgeting’ and how these two tiers were exchanging information and financing. The mission was briefed on disaster risk management strategy, water and air pollution, and how the green budget was being tagged, tracked and monitored.

The government informed the mission that new building codes had already been developed and recently shared with provincial authorities for implementation.

Senate panel

Simultaneously, the Senate Sta­nding Committee on Water Reso­urces expressed grave concern over the lack of details regarding en­­croach­ments along rivers and waterways.

During a meeting chaired by Senator Shahadat Awan, the Ministry of Water Re­­sources revealed that data from Suparco indicated that major encroachments in Punjab had not been removed since August 2024.

The report documented 153 encroachments in the Sargodha Irrigation Zone and 676 encroachments in the Multan Irrigation Zone.

A Federal Flood Commission (FFC) representative claimed that all encroachments had been removed before August 2024, but it failed to provide data to substantiate the claim.

The panel directed the FFC and the Ministry of Water Resources to coordinate with the provinces concerned to remove these within a month and provide an updated report in the next meeting, stressing that such encroachments ultimately cause loss of lives and properties.

Senator Awan warned that if these encroachments were not removed before the monsoon spell this year, it would be considered a criminal act, and all responsible would be punished for that crime, as the Supreme Court had already ordered the removal of encroachments.

The IMF has called for Pakistan to identify infrastructure assets in critical sectors such as energy, transport, communications and health that are vulnerable to climate-related natural disasters like flooding, cyclones and heatwaves. It also recommended defining sector-specific contributions to climate change mitigation, along with clear adaptation targets and investment plans.

To qualify for additional financing under the RSF, Pakistan would be required to finalise steps to incorporate climate resilience and adaptability in sectoral planning and project preparation processes by incorporating climate resilience and mitigation measures in future building codes and urban planning guidelines.

The RSF funding, a relatively new window, is made available to nations who commit high-quality reforms to build resilience against climate catastrophes through adaptation and is repayable over 30 years, including a 10-year grace, and is normally cheaper than EFF terms. In October last year, Pakistan had formally requested the IMF to top up its $7bn EFF with another $1.2bn RSF.

The Fund has already advised Pakistan to invest 1pc of GDP per year — over Rs1.24 trillion based on current estimates — in climate resilience and adaptation reforms to be ready to fight repeated and increasing cycles of extreme weather conditions, particularly floods, and sustain economic growth and reverse inequalities.

The IMF believed that such an 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.

The Fund noted that about 1pc of GDP investment in adaptation infrastructure would increase Pakistan’s climate resilience and buffer climate shocks.

Published in Dawn, February 26th, 2025