ISLAMABAD: Highlighting Pakistan’s vulnerability to the diverse effects of climate change, Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb emphasized his country’s commitment to addressing climate change and promoting green investment opportunities
He was delivering a keynote speech via online platform at the UK-Pakistan Green Investment Forum, organized by the British High Commission in Pakistan, said a press release issued by the finance ministry.
He shed light on Pakistan’s disproportionate vulnerability to the devastating impacts of climate change, despite its minimal contribution to global greenhouse gas emissions.
He cited a recent World Bank study, estimating potential annual GDP losses of up to 1% due to climate-related risks.
Acknowledging the significant funding gap in adaptation, resilience, and mitigation projects, the minister stressed the importance of bridging this divide.
He noted that the changing weather patterns in Pakistan were impacting agricultural yields and posing threats such as flooding, storms, and heatwaves.
Expressing gratitude to the British High Commission for organizing the forum, the minister acknowledged the need for a better portfolio of green investment projects.
He emphasized Pakistan’s reliance on the private sector for support and highlighted the government’s efforts to enhance investor confidence in bankable green opportunities.
The minister also outlined Pakistan’s plans to utilizing innovative financing instruments to raise international climate finance.
He said that the government was working on issuing domestic green Sukuk bonds by December 2024 to finance sustainable development projects.
He elaborated on the significant improvements in various macroeconomic indicators over the past 10 months.
He provided an overview of the country’s macroeconomic stability, including improvements in inflation, GDP growth in the agricultural sector, increased forex reserves, upward trend in stock market and the projected reduction of the Current Account Deficit.
The minister also communicated about the successful completion of the 9-month-long Standby Arrangement (SBA) of International Monetary Fund (IMF), and expressed the intent to engage with the IMF for a medium-term fund-supported program which demonstrates Pakistan’s resolve to pursue sustained economic growth and stabilization.
Aurangzeb wanted to hear from investors about the challenges they encounter when investing in Pakistan and reiterated the government’s determination to make the business environment more conducive for international investors.
