DEBT, climate, and inflation have in recent years become important planks of the spring meetings hosted by the World Bank and IMF. The agenda for this year’s meetings, which concluded last week, included finding ways to reform the global financial architecture, mobilise additional development and climate finance, and strengthen international cooperation to address multiple global crises, especially their impact on developing countries. For us in Pakistan, these issues blend with the country’s economic vulnerabilities, climate imperatives, and foreign policy compulsions. Are we doing enough to integrate them at the policy level?

The agenda of the spring meetings has evolved over the years from simpler institutional issues to redesigning the architecture of the global financial system. This year’s meetings were particularly important as they coincided with the 80th anniversary of Bretton Woods. While the World Bank is seeking how best to ramp up its lending, the IMF is emerging as the guardian of global financial and climate resilience. They are now faced with the unfolding challenge of financing development and climate change and the need to equip themselves to deal with the deepening impacts of debt, climate change, and inflation.

It is too early to know exactly what was decided at the spring meetings. The details will emerge slowly and be reflected in the G20 policy decisions during the year. While Pakistan was busy negotiating the Extended Fund Facility with the IMF, key issues of particular interest to it were discussed at the spring meetings: i) reversal of development gains and increase in poverty levels, ii) addressing the burden of public debt that is crowding out crucial investments,........

© Dawn