Pakistan is grappling with a significant finance gap and a lack of technical capacity in its battle against climate change, but the government is determined to push forward with policies that integrate climate action into every sector. This was the message delivered by Finance Minister Muhammad Aurangzeb and Prime Minister Shehbaz Sharif during separate remarks on Friday, highlighting the urgency of addressing climate issues in the country.
Speaking at a ceremony marking World Day of Glaciers at the National Disaster Management Authority (NDMA) Headquarters, Finance Minister Aurangzeb emphasized the critical link between sustainable economic growth and environmental stability. He stated that Pakistan increasingly recognizes climate change as an existential threat, with severe flooding and growing pollution levels in major cities serving as stark reminders of the dangers ahead. Aurangzeb referenced the catastrophic 2022 floods, describing them as a clear indication of environmental imbalance and a warning for the future.
In his address, Aurangzeb stressed that Pakistan’s path to environmental sustainability requires not only long-term strategies but also short- and medium-term policies. The urgency of the climate crisis leaves little time for relying solely on extended timelines. The finance minister also pointed out that glaciers in northern Pakistan, vital to the country’s water supply and agricultural economy, are under threat, with nearly 10,000 out of 13,000 glaciers at risk of melting. To mitigate this, he called for the implementation of a comprehensive monitoring system and a glacier protection strategy.
As part of Pakistan’s economic reform agenda, the finance minister highlighted the importance of environmental challenges being included in the Country Partnership Framework (CPF) with the World Bank, which is guiding a 10-year program for economic reforms. Addressing the current financial constraints, Aurangzeb acknowledged the finance gap in tackling climate change but reassured that the government is committed to utilizing all available resources to bridge this gap and address environmental concerns effectively.
In line with these efforts, the finance minister launched the Parwaaz Green Action Bond later in the day, a major initiative aimed at securing sustainable financing for green projects. The bond follows the success of Pakistan’s Wapda Green Bond, which saw overwhelming investor interest and was oversubscribed six times. The new Green Action Bond is designed to attract both local and international investors to support projects that promote environmental sustainability.
Aurangzeb stressed the importance of translating climate awareness into actionable solutions and noted recent discussions with the International Monetary Fund (IMF) on establishing a Climate Resiliency Fund. He described these discussions as a promising step toward securing vital funding for Pakistan’s climate agenda. The finance minister also called for the development of structural enablers, such as a well-defined bond yield curve, secondary market liquidity, and a robust green taxonomy framework, which the State Bank of Pakistan has been working to establish. This framework will standardize the assessment, monitoring, and reporting of green projects, ensuring they meet international standards.
In his message for Earth Hour, which will be observed in Pakistan at 8:30 PM on Saturday, Prime Minister Shehbaz Sharif echoed the commitment to integrating climate action across all sectors. He highlighted the government’s ongoing initiatives, such as the Recharge Pakistan program, which is focused on restoring ecosystems, and the National Adaptation Plan (2023), which lays out a strategic roadmap for enhancing climate resilience. Additionally, the National Clean Air Policy (2023) aims to address air quality issues and promote a sustainable future.
The prime minister reiterated that the government is actively pursuing policies to build resilience and sustainability, ensuring that climate action is embedded within the country’s development framework. As Pakistan continues to face the impacts of climate change, these efforts are essential for safeguarding its future, both environmentally and economically.