Prime Minister of Pakistan directs relevant authorities to raise funds for climate-resistant infrastructure, as heavy rains claim lives of over 300 people
Pakistan Struggles to Fund Climate-Resilient Infrastructure Amidst Increasing Vulnerability
Pakistan, a country that contributes less than one percent of global greenhouse gas emissions, finds itself among the most climate-vulnerable nations. This vulnerability has been tragically demonstrated by the recent surge in rain-related deaths across the country, with the toll reaching 300 since late June.
In response to this crisis, Prime Minister Shehbaz Sharif has directed the climate change ministry to generate funds for a climate-resilient infrastructure. The funding strategy involves a multi-pronged approach, aiming to close the significant financing gap that Pakistan faces.
Accessing International Climate Finance
The strategy includes accessing and effectively utilizing international climate finance and loans from multilateral development banks and climate funds. Recent efforts have seen Pakistan issue $106 million worth of Shariah-compliant Green Sukuk bonds and secure substantial loans and grants from entities such as the Asian Development Bank, the World Bank, and the IMF.
Innovative Financial Instruments
Issuing innovative financial instruments, such as Green Sukuk bonds, is another key aspect of the strategy. These instruments are designed to attract both domestic and international investors.
Institutional Reforms
To improve debt and financial management, Pakistan is undertaking institutional reforms, aligning them with global best practices. The aim is to better mobilize and utilize funds for climate-resilient infrastructure.
Targeted Projects
The strategy also includes targeted projects supported by climate adaptation funds, addressing immediate vulnerabilities. For instance, a $9.8 million initiative is underway to protect flood-prone communities in Khyber Pakhtunkhwa.
Increasing Domestic and Private Sector Investment
To complement public and international financing, the government is working to increase domestic and private sector investment in green projects. Currently, private sector participation stands at less than 5%, a figure the government hopes to significantly increase.
Addressing Global Inequities in Climate Finance
Recognizing the global shortfall in adaptation finance, Pakistan is advocating for increased adaptation funding from developed countries. Given Pakistan’s outsized vulnerability to climate disasters despite its low greenhouse gas emissions, this advocacy is crucial.
Current Situation and Future Forecast
As Prime Minister Sharif reviews the flood situation in Gilgit and damages caused during the monsoon season, the Meteorological Department has warned of more rains from Monday, with monsoon currents expected to intensify from Aug. 4. The PMD has issued a warning for heavy rains that may generate flash floods in various regions, including Gilgit-Baltistan, from Aug. 5-7.
The latest report from the National Disaster Management Authority states that 140 children, 103 men, and 57 women have died from rain-related incidents in Pakistan since June 26. In response, Sharif chaired a high-level meeting attended by senior officials and ministers of the government to take stock of the flood situation in Gilgit.
Sharif is also scheduled to meet victims of the rains and distribute relief funds during his day-long trip to the city. The climate change ministry officials are expected to bring or generate funds for Pakistan's climate-resilient infrastructure.
The tragic events of the past few months serve as a stark reminder of the urgent need for action. The strategies outlined above are essential to close the financing gap and build resilience against increasing climate vulnerabilities and extreme weather in Pakistan.
- The climate change ministry in Pakistan is directed to access and effectively utilize international climate finance and loans from multilateral development banks and climate funds.
- Issuing innovative financial instruments, such as Green Sukuk bonds, is another key aspect of their strategy, aiming to attract both domestic and international investors.
- Recognizing the global shortfall in adaptation finance, Pakistan is advocating for increased adaptation funding from developed countries.
- The Meteorological Department has warned of more rains from Monday, with monsoon currents expected to intensify from Aug. 4, indicating a need for immediate focus on climate-resilient infrastructure.
