Pak seeks increased climate financing to tackle growing risks, minister says

KARACHI: Finance Minister Senator Muhammad Aurangzeb stressed on Tuesday the urgent need to mobilise sufficient climate finance to address Pakistan’s escalating climate challenges.

“Enhancing access to international funds, such as the Green Climate Fund (GCF) and the Adaptation Fund, is vital. The success of Pakistan’s first green Eurobond in 2021, which raised $500 million, underscores our ability to attract sustainable investments,” said Aurangzeb. He emphasised scaling up initiatives like green bonds, sustainability-linked loans and carbon credits to empower the private sector in leading climate action.

Aurangzeb highlighted Pakistan’s precarious position among the top 10 most climate-vulnerable countries, with the 2022 floods causing over $30 billion in damages. He noted the country requires an estimated $348 billion by 2030 to achieve its climate adaptation and mitigation goals.

Referring to the World Bank Group’s recently approved $20 billion, 10-year Country Partnership Framework for Pakistan, Aurangzeb called it a “significant step” towards addressing climate resiliency and decarbonization. He stated the government will collaborate closely with the World Bank to tackle key social sector challenges for long-term sustainability.

The finance minister urged the private sector to take the lead in developing “green, investable and bankable projects” to advance Pakistan’s climate efforts. He added, “[the] OICCI, with its global expertise in climate initiatives, can act as a bridge between policymakers and the private sector, accelerating the country’s climate resilience efforts.”