ISLAMABAD: Pakistan has assured the International Monetary Fund (IMF) that it will be committing to a comprehensive 13-point climate reform agenda. Pakistan has set key targets under the $1.3 billion Resilience and Sustainability Facility (RSF) program, according to official documents.
Disaster Risk financing will be strengthened by the government to manage natural disasters better. In all infrastructure projects 30 percent of expenditures will be allocated to climate-related spending. From now on any infrastructure product costing over Rs. 750 million will have a mandatory climate impact assessment.
A climate budgeting system will be implemented at both provincial and federal levels. A Rs. 5 carbon levy on diesel and petrol is among the new conditions. Subsidies will be announced the Ministry of Finance to promote electric vehicles. The target for 2030 is that 50 percent of motorcycles and 30 percent of new vehicles will be electric by 2030.
The subsidies will be limited to deserving consumers. IMF has also been assured that electricity theft and line losses will be reduced. Additionally, the sale of energy-saving appliances will be promoted until June 2027.
Climate impact assessments will be required by Future development projects. For efficient water use in Sindh, Balochistan and KP a plan is in place to collect service charges. Revenue will also be increased by provinces from irrigation systems. For Punjab and Sindh, a new water tariff adjustment system will be introduced.
Also read: Pakistan will receive $1.4 billion through IMF programme to deal with climate issues
