Thursday October 28, 2021

Pakistan eyes debt-for-nature swap deal worth $1b till 2023

September 24, 2021

Islamabad : Pakistan eyes to achieve debt-for-nature swap deal worth $1 billion till 2023 by link this financial relief to improvement in a country’s environment.

According to the details, Pakistan has been in touch with four countries and two international donor agencies for debt-for-nature swap deals, which can see debt relief in return for binding commitments to achieve conservation targets. An official said Pakistan has shown performance through the Billion Tree Tsunami, Clean Green Pakistan, plastic bag ban, recharge Pakistan, ecosystem restoration, and setting up twenty-three national parks in the last three years.

It is pertinent to mention here that if Pakistan succeeds in striking this kind of deal then it will not pay back the debts, but against that part of the loan, it will make progress on the restoration of the natural environment, whether it will be biodiversity conservation or restoration, or be it green jobs. Pakistan owes nearly $11.54 billion to the Paris Club of country lenders, including $1.42 billion to Germany, $175 million to Italy, $5 million to the UK, and $403 million to Canada. Special Assistant to the Prime Minister on Climate Change Malik Amin Aslam has said that the International Monetary Fund and World Bank should facilitate the countries like Pakistan that are showing remarkable progress in the conservation of the natural environment.