FinMin urges faster climate finance

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, delivered a keynote speech at the Climate Finance Dialogue held alongside the 30th Conference of the Parties (COP-30) in Belém, Brazil, calling for faster global climate finance and simpler access for developing economies.

According to an official statement issued on Saturday, the minister highlighted Pakistan’s urgent climate vulnerabilities and highlighted ongoing reforms and policy initiatives. He called for accelerated funding, improved access and stronger technical assistance for developing countries.

Aurangzeb regretted his inability to attend the event in person due to pressing commitments in Pakistan, but said the country remained an active participant in the global climate debate. He noted that while Pakistan has long understood the “what and why” of the climate challenge, the time has come to focus on implementation and implementation.

The finance minister reiterated that Pakistan is one of the most climate-vulnerable countries in the world, where adaptation needs outweigh mitigation efforts. He said that Pakistan already has key frameworks such as Nationally Determined Contributions (NDCs), National Adaptation Plan and Climate Prosperity Plan with the V20 Group, which together provide a foundation for climate-led development. He referred to the launch of Pakistan’s National Climate Strategy, announced in Baku last year, and welcomed the State Bank of Pakistan’s Green Classification Guidelines introduced earlier this year.

Aurangzeb highlighted Pakistan’s large climate finance gap but acknowledged the role of international financial institutions and multilateral development banks. He pointed to the continued support of the Asian Development Bank and the 10-year Country Partnership Framework with the World Bank, under which two of the six priority pillars focus on climate change, including decarbonisation and resilience. He welcomed the annual commitment of $2 billion, with a third earmarked for climate projects.

Appreciating these developments, the minister said that bureaucratic hurdles in the Green Climate Fund (GCF) need to be reduced, particularly in the accreditation, processing and disbursement processes. He stressed that the Casualty and Damage Fund, set up in Sharm el-Sheikh, must move beyond planning to actual delivery for vulnerable nations like Pakistan.

It also informed the dialogue on Pakistan’s efforts to expand climate finance instruments. These include funds for climate action, an upcoming $90 million fund from Ecumen, and plans to re-engage with global capital markets. He recalled that Pakistan’s $500 million WAPDA green bond was heavily oversubscribed. He expressed optimism that Pakistan’s inaugural Panda Bond, due by the end of the year, will have a green theme and help unlock Chinese capital markets.

Domestically, the minister said Pakistan is promoting green Sukuk and coal market initiatives, citing Sindh’s successful pilot projects. He also mentioned the active discussions of debt-for-nature swaps following recent commitments in Spain.