Caretaker Finance Minister Shamshad Akhtar has stated that Pakistan requires an investment of approximately $340 billion by 2030 to effectively address the challenges of climate change. This amount is equivalent to 10% of the country’s cumulative gross domestic product (GDP). Speaking at the 2nd Pakistan Climate Conference organized by the Overseas Chambers of Commerce and Industry (OICCI), she emphasized the trade-off between climate finance and developmental finance and noted that Pakistan would spend Rs200 billion on climate change impacts by 2030.
Finance Minister Akhtar acknowledged the need for countries like Pakistan to make decisions on prioritizing spending between development and climate change. She highlighted the challenge of obtaining funds for Pakistan’s climate crisis without undercutting other development finance. The Ministry of Finance is collaborating with the Ministry of Climate for the first time and will attend COP28 together in November to explore innovative climate finance mechanisms.
She emphasized the role of the Asian Development Bank (ADB) and the World Bank in providing financing to address climate change challenges. Dr. Shamshad mentioned the fiscal deficit Pakistan is facing and the importance of the National Adaption Plan in arranging financing for climate change initiatives. Funds will be raised for Islamic and green financing from the capital market, with the corporate and private sector contributing.
Energy Minister Muhammad Ali, addressing the conference, emphasized the substantial cost of climate change to Pakistan and the need for substantial investments in energy assets infrastructure by 2040. Leveraging the capabilities of the private sector, especially organizations like OICCI, was highlighted to contribute to Pakistan’s climate future.
OICCI President Amir Paracha emphasized that climate change is a global issue, but Pakistan is experiencing its impact now. OICCI, as a collective of over 200 multinational corporations, launched the climate conference for the second consecutive year, aiming to minimize environmental impact through operational changes and engagement with key players in the ecosystem.
The conference also featured insights from Philip Skinner, MD of GuarantCo, who emphasized the integration of climate considerations into decision-making processes across financial institutions. OICCI Secretary General M Abdul Aleem highlighted initiatives, projects, and campaigns to address the climate crisis, emphasizing the need to align policies and investments with a net-zero future. OICCI Vice President Rehan Shaikh stressed the urgency of achieving the goals of the Paris Agreement and mobilizing resources for the country’s development.
