Aurangzeb pushes for climate financing reforms at V20

Urges MDBs to expand grant opportunities, concessional financing windows

ISLAMABAD:

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, said in Washington that Pakistan is in the process of developing its Climate Prosperity Plan and urged Multilateral Development Banks (MDBs) to expand grant opportunities and concessional financing windows. Speaking at the Vulnerable Twenty Group (V20) Ministerial Dialogue in Washington on the theme "Realising Climate Prosperity through Financial Reform, Debt Solutions, and Affordable Capital," the minister highlighted the need to reform global finance to "make debt work for the climate," according to a press statement released on Wednesday.

Aurangzeb, who is leading Pakistan's delegation to the Annual Meetings of the World Bank and International Monetary Fund (IMF), stressed the importance of MDB support for Pakistan's economic recovery and climate resilience. The minister also endorsed the official recognition of the V20 by the IMF as an intergovernmental group.

During his visit, Aurangzeb met with various global financial leaders. In a meeting with a Citibank delegation led by Jay Collins, Vice Chair of Public Sector, the minister discussed Pakistan's economic stabilisation and outlined ongoing reforms in taxation, energy, and government rightsizing. He also shared the long-term 'Road-to-Market' strategy, which includes tapping into international capital markets.

The finance minister also attended the G-24 Ministers and Governors Meeting, where he urged development partners to address pressing challenges such as climate change, population growth, and child stunting in developing countries, particularly Pakistan. Aurangzeb, recently named Second Vice Chair of the G-24 Bureau, stressed the need for debt relief, climate action, and better representation for developing nations in global financial institutions.

In meetings with key figures like International Finance Corporation (IFC) Managing Director Makhtar Diop and Saudi Finance Minister Mohammed Aljadaan, Aurangzeb discussed issues relating to expedited evaluation of bids for Islamabad airport, Diversified Payment Rights (DPR), raising local currency through offshore bond issuance, privatisation of DISCOs and HBFC came under discussion. He also outlined collaborative opportunities to modernise Pakistan's energy sector, improve infrastructure, and attract investments. The minister thanked the IFC for its support and invited further investment in agribusiness, healthcare, and digital infrastructure.

Aurangzeb also met with Brent Neiman, Assistant Secretary for International Finance of the US Treasury Department, to discuss reforms aimed at broadening Pakistan's tax base, reducing energy sector inefficiencies, and building climate resilience. Neiman praised Pakistan's structural reforms, noting reductions in the fiscal deficit and inflation.

Throughout his engagements, Aurangzeb reiterated Pakistan's resolve to fiscal consolidation, governance improvements, and creating a favourable environment for private sector growth, as the country moves from economic stabilisation to sustainable growth.