Islamabad: 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).
According to Press Information Department, PM’s climate aide Romina Khurshid Alam expressed pride in rolling out Pakistan’s first-ever climate finance strategy, describing it as a significant step toward a sustainable and climate-resilient future. She explained that the strategy outlines a path to bridge Pakistan’s estimated $348 billion climate finance gap by 2030 for 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.
Romina Khurshid Alam highlighted that the NCFS 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 the most vulnerable sectors and communities. She emphasized that Pakistan’s climate resilience vision 2050 includes resilient infrastructure and agriculture, climate-smart cities, and ecosystems providing diversified livelihoods. The NCFS focuses on climate-proofing policies, clarifying institutional roles, and enhancing climate finance systems, with a three-pronged approach involving whole-of-government alignment, diversified domestic resources, and innovative funding mechanisms.
Transparency and accountability are core principles of the NCFS, supported by a three-tiered monitoring system to ensure efforts align with Pakistan’s commitments and goals. Romina Khurshid Alam also underscored the importance of inclusive policies that empower marginalized groups, particularly women, integrating circular economy principles for resource efficiency and sustainable development.
Pakistani finance minister Muhammad Aurangzeb expressed joy at the launch of NCFS, viewing it as a roadmap to access and secure climate finance from available funding channels. He described the NCFS as a cornerstone of Pakistan’s commitment to the Paris Agreement, emphasizing the importance of engaging with the private sector, international climate finance, and carbon markets. The strategy identifies sectorial priorities and outlines measures to leverage various financial instruments to support climate resilience initiatives, providing a clear framework for climate finance from different channels. Aurangzeb concluded by stating that NCFS reflects Pakistan’s proactive approach to mobilizing climate finance and building resilience against climate-induced challenges.