By S.M. Inam
ISLAMABAD/KARACHI: Finance Minister Muhammad Aurangzeb on Wednesday said Pakistan was actively pursuing diversified funding avenues, including green bonds and sukuk, to support its climate resilience and energy transition goals.
Addressing a climate change conference in Islamabad, Aurangzeb said the country currently has access to around $600 to $700 million in climate finance. Emphasizing the importance of green financing, the finance minister said the government was focusing on broadening its funding base through instruments such as green bonds and locally issued green sukuk.
The Finance Minister said Pakistan expected to receive around $200 million from the International Monetary Fund (IMF), while the Asian Development Bank (ADB) was also extending support to the country. He further said the government was working towards issuing its inaugural Panda bond this month, expected to be worth around $250 million equivalent in Chinese renminbi (RMB).
The Finance Czar stressed the need for a pragmatic approach, urging stakeholders to focus on efficiently utilizing currently available resources rather than concentrating on large, theoretical financing gaps. He said discussions about hundreds of billions of dollars in financing shortfalls remained largely academic at this stage, adding that the immediate priority should be effective deployment of existing funds.
Referring to international experience, the finance minister said China’s rapid expansion in green finance, which now accounts for nearly 40% of global green bond issuance, offered useful lessons. He also acknowledged support from international experts in helping Pakistan develop a green investment pipeline and accelerator framework.
