BELEM, (Brazil): Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, Saturday virtually addressed the Climate Finance Dialogue held on the margins of the 30th Conference of the Parties (COP-30) in Belém, Brazil.
He underscored Pakistan’s urgent climate vulnerabilities, highlighted the country’s ongoing reform and policy initiatives, and called for accelerated global climate financing, simplified access modalities, and enhanced technical support for developing economies.
Addressing the dialogue, the Minister regretted his inability to attend in person due to pressing engagements in Pakistan but emphasised the importance of continuing Pakistan’s active contribution to the global climate discourse. He reaffirmed that while Pakistan has long understood the “what and why” of the climate challenge, the time has now come to focus squarely on implementation, execution, and delivery.
The Finance Minister reiterated that Pakistan remains one of the world’s most climate-vulnerable nations, where adaptation needs significantly outweigh mitigation considerations. He noted that Pakistan already possesses several foundational frameworks including the Nationally Determined Contributions (NDCs), National Adaptation Plan, and the Climate Prosperity Plan developed with the V20 Group which together form a solid basis for climate-informed development. He also recalled the launch of Pakistan’s National Climate Finance Strategy, announced last year in Baku, and welcomed the State Bank of Pakistan’s Green Taxonomy Guidelines issued earlier this year.
Senator Aurangzeb highlighted Pakistan’s substantial climate financing gap but acknowledged the positive role played by International Financial Institutions (IFIs) and Multilateral Development Banks (MDBs). He specifically pointed to the Asian Development Bank’s support and Pakistan’s 10-year Country Partnership Framework with the World Bank, under which two of six priority pillars relate directly to climate change, including decarbonisation and climate resilience. He welcomed the commitment of USD 2 billion per year, with one-third earmarked for climate-related initiatives.
While appreciating these developments, the Minister also candidly noted areas requiring urgent improvement. He called for reducing bureaucratic hurdles in the Green Climate Fund (GCF), particularly in accreditation, processing timelines, and disbursement procedures. He stressed that the Loss and Damage Fund, initiated at Sharm-el-Sheikh, must move beyond prolonged operationalisation toward actual delivery for vulnerable countries like Pakistan.
The Minister apprised the dialogue of Pakistan’s ongoing efforts to diversify its climate finance instruments. He noted emerging initiatives such as climate action funds, a forthcoming USD 90 million fund by Ecumen, and steps to re-engage with international capital markets, recalling that Pakistan’s earlier USD 500 million WAPDA green bond had been heavily oversubscribed. He expressed optimism that Pakistan’s inaugural Panda Bond, expected before year-end, would be green-themed and help unlock Chinese capital markets. Domestically, he stressed the continued development of green Sukuk and expansion of carbon market initiatives, citing the province of Sindh’s successful proof-of-concept projects. He also noted active discussions on debt-for-nature swaps, following engagements in Spain.
Senator Aurangzeb underscored that Pakistan’s pursuit of climate finance must be complemented by technical assistance, particularly in developing investable and bankable climate projects that meet global standards for structuring, monitoring, and reporting. He reaffirmed Pakistan’s commitment to the Coalition of Finance Ministers for Climate Action, emphasising that finance ministers worldwide must play a central role in mainstreaming climate priorities within national economic frameworks.
Concluding his remarks, the Minister stressed that climate change is an existential challenge, integral to Pakistan’s long-term economic stability, growth trajectory, and national development objectives. He affirmed that while the government is determined to steer the country toward economic stabilisation and growth under the leadership of the Prime Minister, true sustainable progress will only be possible if Pakistan confronts its climate vulnerabilities with urgency, seriousness, and unwavering focus.
“Climate change demands our utmost attention. Pakistan’s future prosperity depends on addressing this existential threat head-on,” the Minister stated.
Copyright Business Recorder, 2025