Global finance: Aurangzeb advocates for mainstreaming climate resilience

RIYADH: Finance Minister Muhammad Aurangzeb has expressed concern over the global climate financing mechanisms, adding that climate resilience must be mainstreamed in global finance. He expressed these views during a high-level panel discussion at the Global Development Finance Conference - Momentum 2025 in Riyadh Thursday.

The Minister stressed that rehabilitation and reconstruction require substantial external support. FM Aurangzeb expressed concern that global climate financing mechanisms, such as the Green Climate Fund and the Loss and Damage Fund, remain slow and bureaucratic, with lengthy accreditation processes that hinder timely access for vulnerable countries.

He reiterated that while fiscal resources will continue to be allocated domestically, external financing from development partners and international capital markets remains indispensable for Pakistan’s adaptation agenda.

Climate finance key to protecting Pakistan’s economy and environment: Aurangzeb

Muhammad Aurangzeb called for a pragmatic, step-by-step approach focused on deploying the resources already available while working to close the wider financing gap.

Talking about the Pak-US relations, he noted that the relationship with the United States has strengthened significantly, particularly in sectors such as minerals and mining, and advanced technologies including AI, blockchain and digital infrastructure.

Discussing Pakistan’s flagship copper mining project, Reko Diq, he described it as a transformative development for the country’s economic and energy transition future.

When asked about navigating geopolitical dynamics between major powers, the Finance Minister said that Pakistan is well-positioned to maintain constructive relationships with both the United States and China, ensuring stability and opportunities for diversified foreign investment.