Daily Times

Pakistan launched on Thursday its first National Climate Finance Strategy (NCFS) to address the escalating challenges posed by global heating by mobilising financial resources for climate mitigation and adaptation efforts, focusing on scaling up climate-related investments, attracting international finance and strengthening domestic financial systems.

Pakistan’s Federal Finance Minister Muhammad Aurangzeb and Pakistani Prime Minister’s Coordinator on Climate Change Romina Khurshid Alam jointly launched NCFS at Pakistan Pavilion in Baku on the sidelines of the two-week UN-led global climate conference (COP29).

“It is a moment of pride for us to be able to roll out Pakistan’s first-ever climate finance strategy, a major step in our commitment to a sustainable and climate-resilient future,” PM’s climate aide Romina Khurshid Alam said in her keynote remarks at the launching event.

Explaining the strategy, she said that the climate finance strategy outlines a path to bridge the significant climate finance gap facing Pakistan-a gap we estimate at $348 billion by 2030 for our climate-resilient and low-carbon development goals.

Ranked among the top 10 most climate-vulnerable countries, Pakistan experienced a $30 billion loss in the 2022 floods, directly affecting 33 million people.

“Our NCFS primarily seeks to plug this gap by establishing a climate finance framework aligned with a whole-of-economy approach, aiming to climate-proof investments and allocate resources to our most vulnerable sectors and communities,” Romina Khurshid Alam remarked.

She highlighted that Pakistan’s climate resilience vision 2050 encompasses resilient infrastructure and agriculture, climate-smart cities, and ecosystems that provide diversified livelihoods. The NCFS is a well-thought-out roadmap that focuses on climate-proofing policies, clarifying institutional roles, and enhancing our climate finance systems. Its three-pronged approach-whole-of-government alignment, diversified domestic resources, and innovative funding mechanisms-will be instrumental in unlocking climate finance at scale. With transparency and accountability as core principles, a three-tiered monitoring system underpins the NCFS, ensuring every effort aligns with Pakistan’s commitments and goals.

Shedding light on the inclusive policy actions to be taken in the light of NCFS, Pakistani PM’s climate coordinator Romina Khurshid Alam highlighted, “We also prioritize inclusive policies that empower marginalized groups, particularly women, integrating circular economy principles to drive resource efficiency and sustainable development.”

The Pakistani finance minister Muhammad Aurangzeb said having seeing the launch of NCFS is a matter of rejoicing as it provides a roadmap to access and secure climate finance from available funding channels.

He also termed NCFS a cornerstone of Pakistan’s commitment to the Paris Agreement, underpinning the unprecedented significance of engaging with the private sector, international climate finance, and carbon markets.

It also identifies sectoral priorities and outlines measures to leverage various financial instruments to support climate resilience initiatives, which paints a clear framework for climate finance from various channels, Aurangzeb highlighted.

“Above all, the launching of NCFS reflects Pakistan’s proactive approach to mobilising climate finance and building resilience against climate-induced challenges,” the Pakistani federal finance minister told the participants of the event.