IslamabadPakistan is facing a large climate financing gap, which requires $ 348 billion between 2023 and 2030 to address the escalating climate crisis. This deficiency poses a serious threat to the economic stability of the nation and long -term sustainability, according to Dr. Shamshad Akhtar, former Finance Minister and a major figure in preventing the failure of Pakistan payment.
Dr. Akhtar, in cooperation with Mimosh Khawaga, highlighted the urgent need for significant financial resources to mitigate climate risk and support flexibility. Their detailed report confirms that without immediate action, the economic progress of Pakistan can be retracted through events related to the catastrophic climate.
The report draws attention to the insufficient money available to adapt to the climate and remove carbon, stressing the risk of severe economic repercussions if the situation remains unsuccessful. Pakistan, which ranked fifth in the world in terms of climate weakness, is facing unparalleled risks, with 90 % of its population exposed to climate risk. Critical issues such as high levels of sea surface threaten a third of the country’s lands, while frequent natural disasters such as floods, droughts and heat waves drain 14 % of the annual GDP of Pakistan.
What increases the complexity of matters, climate change at risk exposes 75 % of water resources in Pakistan, deepening the weaknesses of the country, as shown by both iPCC and the United Nations.
The research report accurately holds climate financing efforts in Pakistan and compares them with international standards, which reveals a great contrast. While the country needs 348 billion dollars in climate work, current financing levels decrease dramatically, with an average of 1.4 to two billion dollars annually.
To fill this gap, the report calls for promoting international support, innovative financial mechanisms and strongest national policies. He confirms that effective climate work is crucial for Pakistan to reduce emissions, build flexibility, and achieve sustainable development goals.
She faces climate governance in Pakistan, despite its ambition, large barriers. The National Climate Change Policy and Climate Change Law of 2017, which established major institutions such as the Pakistani Climate Change Authority, is disabled through bad coordination, limited resources, and slow implementation. These challenges weaken the nation’s ability to effectively address climate threats and provide results.
The report calls to improve governance, climate priorities are clearer, and the strongest institutional capacity to pay climate actions. Exploring various climate financing sources, such as multilateral boxes (for example, the Green Climate Fund and the Global Environment Facility), bilateral financing, and private sector contributions to enhancing climate response in Pakistan.
Doctor Akt choose to use a set of financial tools, including carbon markets, guarantee, discrimination loans, and objective bonds, to encourage investment in climate solutions. These tools will help secure the funds needed to face the urgent climate challenges in the country.
Despite these opportunities, climate financing efforts in Pakistan are hindered by factors such as high investment risks and limited, public and private sector capabilities. Inequality of government policies, along with fragmented efforts, and more delay progress.
To overcome these barriers, the report emphasizes the need for targeted interventions, enhanced institutional capabilities, and the strongest government leadership. Six major strategies define: drafting the mid -term strategy financing plan, promoting local financial markets, implementing financial policies to support the green economy, directing international financing, enhancing disaster financing systems, and promoting institutional capabilities.
In conclusion, the report calls for comprehensive planning, reinforced policies, capacity building to fill climate financing gap and ensure a sustainable future for Pakistan.
