By Asad Cheema
ISLAMABAD: The experts on Tuesday at a high-level consultative session underscored the need for urgent action of all stakeholders for innovative climate smart financing tools as climate disasters were heavily impacting the country’s GDP and community resilience.
The Center for Peace and Development Initiatives (CPDI), in collaboration with the Friedrich Naumann Foundation for Freedom (FNF) hosted the consultative session titled “Climate Change and the Importance of Climate Smart Financing” that convened parliamentarians, government officials, financial experts, and climate advocates to explore the critical role of sustainable finance in driving climate action.
CPDI Executive Director Mukhtar Ahmad Ali, in his opening remarks, stressed the vital role legislators should play in addressing climate change, saying that despite Pakistan’s minimal contribution to global emissions, it remained highly vulnerable to its effects.
He called for stronger political will and bureaucratic reform to ensure climate-smart policies are implemented at every level of government.
Birgit Lamm, Country Head of FNF Pakistan, underscored the financial toll of climate change on Pakistan. She shared that the World Bank had estimated the damage from climate-related disasters to be $16 billion, with roughly 4% of the population plunged into poverty as a result.
Ms Lamm emphasized that despite the staggering losses and early warnings, Pakistan did not take sufficient action to mitigate the effects of the 2022 floods, which devastated the same regions impacted by the 2010 floods.
She called for more proactive measures to prevent future climate catastrophes. Member of the National Assembly’s Standing Committee on Climate Change Shaista Pervaiz acknowledged Pakistan’s ongoing struggle with climate issues, noting that many challenges stemmed from legislative gaps.
She emphasized that the 18th Amendment, which devolved significant powers to the provinces, had created coordination challenges between provincial and federal governments.
She stressed on the importance of Nationally Determined Contributions (NDCs) and the urgent need for dedicated financial resources to meet Pakistan’s climate targets.
CEO of MAHER Consulting, Amer Ejaz and Rashid Azeem, UBL’s Chief Green Banking Manager, focused on the critical role the financial sector plays in promoting climate-resilient development. They called for the banking industry to adopt green financing models and encouraged collaboration between financial institutions, the government, and private sector stakeholders to ensure climate resilience is factored into all investment decisions.
Dr Majid Bilal from the Indus Consortium, and Asim Jaffry, Country Programme Lead of Fair Finance Pakistan, provided insights into the practical applications of green financing and Environmental, Social, and Governance (ESG) frameworks, underscoring the need for comprehensive policies that not only address environmental concerns but also prioritize social equity.
The consultative session concluded with a call to action for all stakeholders, urging greater alignment between financial systems, public policy, and climate goals.
It reinforced the need for Pakistan’s legislators and policymakers to advocate for dedicated climate financing, ensure transparent use of funds, and drive climate-smart policy reforms.
