Pakistan shares plans to mobilise funds for national climate action

Pakistan introduced its inaugural National Climate Finance Strategy (NCFS) on Thursday to tackle intensifying climate challenges, with a focus on mobilising financial resources for climate mitigation and adaptation.

The strategy prioritises boosting climate-related investments, attracting international funds, and strengthening domestic financial frameworks to support resilience initiatives.

The launch took place at the Pakistan Pavilion in Baku on the sidelines of COP29, the two-week United Nations-led climate conference. Finance Minister Muhammad Aurangzeb and Romina Khurshid Alam, the Prime Minister's Coordinator on Climate Change, jointly inaugurated the NCFS.

“This is a moment of pride for us,” said Alam. “Rolling out Pakistan’s first-ever climate finance strategy marks a major step in our commitment to a sustainable and climate-resilient future.”

Alam explained that the NCFS aims to address the significant climate finance gap Pakistan faces, estimating a need of $348 billion by 2030 to meet climate-resilient and low-carbon development goals.

Ranked among the world’s top 10 most climate-vulnerable nations, Pakistan sustained $30 billion in losses due to the 2022 floods, which impacted 33 million people.

“Our NCFS seeks to bridge this gap by establishing a climate finance framework aligned with an economy-wide approach,” Alam said, emphasising that the strategy is designed to direct resources towards Pakistan’s most vulnerable communities and sectors.

Aligned with the country's 2050 climate resilience vision, the NCFS focuses on bolstering infrastructure and agriculture, promoting climate-smart cities, and enhancing ecosystems to sustain diversified livelihoods.

The strategy also underscores a three-pronged approach: whole-of-government alignment, diversified domestic resource allocation, and innovative funding mechanisms to unlock climate finance at scale.

Transparency and accountability are central to the NCFS, supported by a three-tier monitoring system that ensures adherence to Pakistan’s climate goals and commitments.

Alam noted that NCFS also prioritises inclusive policies for marginalised groups, particularly women, and integrates circular economy principles to promote sustainable development.

Aurangzeb described the NCFS as a critical framework for accessing and securing climate finance through various channels.

"The NCFS is foundational to Pakistan’s commitment under the Paris Agreement," he said, highlighting its role in engaging the private sector, international climate finance, and carbon markets. The strategy identifies priority sectors and lays out plans to leverage diverse financial tools for resilience efforts.

“The launch of NCFS is a testament to Pakistan’s proactive approach in mobilising climate finance and strengthening its defences against climate-induced risks,” Aurangzeb told the participants at the event.