Islamabad: Senator Muhammad Aurangzeb, Pakistan’s Federal Minister for Finance and Revenue, has called for pragmatic and coordinated approaches to climate finance and sustainable development. Speaking at the 28th Sustainable Development Conference (SDC) organized by the Sustainable Development Policy Institute (SDPI), the Minister highlighted the critical need to mainstream climate finance and leverage existing resources.

Addressing a special session titled “Mobilizing Finance for Circular South Asia,” Senator Aurangzeb emphasized the importance of building strong fiscal and external buffers to manage potential external shocks. Despite global uncertainty, he noted that the world economy remains resilient, driven by structural reforms and private sector dynamism.

The Minister discussed Pakistan’s emerging digital finance landscape, mentioning the creation of the Pakistan Crypto Council and the establishment of the Virtual Asset Regulatory Authority. He reassured that the country’s approach to virtual assets aligns with its specific risk profile and regulatory priorities.

Focusing on climate finance, Senator Aurangzeb outlined Pakistan’s comprehensive framework, which includes the National Adaptation Plan and the National Climate Finance Strategy. He acknowledged the global financing gap but asserted that Pakistan possesses adequate resources and frameworks for effective implementation.

The Minister announced significant multilateral support secured by Pakistan, including $1.3 billion from the IMF, $500 million from the Asian Development Bank, and a 10-year Country Partnership Framework with the World Bank Group. He stressed the importance of mobilizing domestic resources and private capital through green bonds and carbon markets.

Senator Aurangzeb praised innovative private sector initiatives like Acumen’s $90 million Climate Action Fund and Sindh’s mangrove carbon credit project. He urged these initiatives be replicated nationwide and called for enhanced technical capacity to develop investable climate projects.

He highlighted the crucial role of finance ministries in integrating climate action into national budgets, affirming the government’s commitment to prioritizing climate change and population management in economic and fiscal planning.

The Minister concluded by urging collective ownership and coordination among stakeholders to maximize existing opportunities and resources. He expressed gratitude to SDPI and its international partners for facilitating the regional dialogue and reiterated the government’s commitment to sustainable, inclusive, and climate-resilient economic growth.