Green investment a priority: Aurangzeb

WB study estimates annual GDP losses of up to 1% due to climate-related risks

ISLAMABAD:

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, highlighted Pakistan’s commitment to addressing climate change and promoting green investment opportunities during his keynote speech at the UK-Pakistan Green Investment Forum, organised by the British High Commission in Pakistan on Friday, according to a press statement issued by the finance ministry.

Despite its minimal contribution to global greenhouse gas emissions, Pakistan faces disproportionate vulnerability to the devastating impacts of climate change, as highlighted by a recent World Bank study estimating potential annual GDP losses of up to 1% due to climate-related risks, said the finance minister.

Aurangzeb stressed the importance of bridging the significant funding gap in adaptation, resilience, and mitigation projects, given the impact of changing weather patterns on agricultural yields and threats such as flooding, storms, and heatwaves. He expressed gratitude to the British High Commission for organising the forum and acknowledged the need for a better portfolio of green investment projects. He emphasised Pakistan’s reliance on the private sector for support in enhancing investor confidence in bankable green opportunities.

The finance minister outlined plans to utilise innovative financing instruments, including issuing domestic green Sukuk bonds by December 2024 to finance sustainable development projects.

He also provided an overview of significant improvements in various macroeconomic indicators over the past 10 months, including inflation, GDP growth in the agricultural sector, increased forex reserves, among others.

Published in The Express Tribune, May 11^th, 2024.

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