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Debt Sustainability, Climate Crisis and Development: Assessing the IMF’s ‘Green Austerity’ in Response to Pakistan’s 2022 Floods

Author

Listed:
  • Hashim Bin Rashid

    (University of Pennsylvania)

  • Zain Moulvi

    (Alternate Law Collective (ALC))

  • Shehrzadae Moeed

    (Alternate Law Collective (ALC))

Abstract

Drawing on how the IMF responded to Pakistan’s devastating 2022 floods, the article assesses ongoing efforts within the IMF to integrate debt sustainability and climate. The article shows how the economic metrics of Pakistan declined significantly due to the IMF’s insistence on austerity, and how a new climate-integrated Stand-By-Agreement for Pakistan in 2023 fails to account for climate-debt risks in its Debt Sustainability Analysis.

Suggested Citation

  • Hashim Bin Rashid & Zain Moulvi & Shehrzadae Moeed, 2024. "Debt Sustainability, Climate Crisis and Development: Assessing the IMF’s ‘Green Austerity’ in Response to Pakistan’s 2022 Floods," Development, Palgrave Macmillan;Society for International Deveopment, vol. 67(3), pages 291-304, December.
    • Handle: RePEc:pal:develp:v:67:y:2024:i:3:d:10.1057_s41301-025-00423-z
    DOI: 10.1057/s41301-025-00423-z
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    References listed on IDEAS

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    1. Guzman Martin & Heymann Daniel, 2015. "The IMF Debt Sustainability Analysis: Issues and Problems," Journal of Globalization and Development, De Gruyter, vol. 6(2), pages 387-404, December.
    2. Saher Asad & Lauren N. Dahlin & Juan D. Barón, 2023. "Understanding Socioeconomic Factors in Climate Change Awareness and Action," World Bank Publications - Reports 40698, The World Bank Group.
    3. World Bank, 2023. "International Debt Report 2023," World Bank Publications - Books, The World Bank Group, number 40670.
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