Aurangzeb presses for climate action

ISLAMABAD:

Finance Minister Muhammad Aurangzeb has stressed the importance of climate resilience, attracting foreign investment and promoting economic diversification.

He highlighted this during a series of high-level engagements on the sidelines of the World Bank and International Monetary Fund's Spring Meetings in Washington.

According to a press release issued by the finance ministry here Saturday, at the high-level dialogue of the Fund for Responding to Loss and Damage (FRLD), he highlighted climate change as an existential threat to Pakistan, recalling the devastating 2022 floods.

He stressed the urgent need to operationalise the Loss & Damage Fund with simplicity, agility and robust accountability mechanisms, urging faster disbursements to vulnerable nations.

In a meeting with Hiroshi Matano, Executive Vice President of the Multilateral Investment Guarantee Agency (MIGA), Aurangzeb appreciated MIGA's efforts in resolving the Star Hydro power dispute and pledged full support for a potential trade finance facility.

He welcomed MIGA's upcoming mission to Pakistan and expressed hope for finalising the deal this year.

The finance minister also held a productive meeting with Thomas Lersten, a senior official from the US State Department, thanking the US for its strong participation in the minerals conference in Pakistan.

He reiterated Pakistan's desire for constructive engagement to address tariff issues, for which a high-level trade and investment delegation was expected to visit the US.

During discussions with Makhtar Diop, managing director of the International Finance Corporation (IFC), the minister highlighted Pakistan's strong macroeconomic indicators, including Fitch's recent credit rating upgrade.

He urged expedited advisory work on Karachi Airport and stressed subnational governance capacity-building.

The finance minister also met with senior representatives of the United States Export-Import Bank, led by Jim Barrows and briefed them on Pakistan's improving macroeconomic fundamentals and fiscal consolidation measures, highlighting the staff-level agreement with the IMF under the EFF and RSF.

Providing them with an update on the Reko Diq project, the finance minister called for enhanced EXIM Bank support for US investment in Pakistan, expressing a desire to resolve tariff issues.

In talks with JP Morgan Chase, the finance minister underscored Pakistan's stable economic trajectory and plans to diversify markets. He reiterated Pakistan's intent to return to international capital markets through an inaugural Panda Bond issuance.

While speaking at an IMF panel discussion on "Navigating an Uncertain World," Minister Aurangzeb emphasised the importance of promoting regional trade amidst global uncertainty.

He advocated for sector and market diversification and a shift from import substitution to export-led growth, identifying the IT sector as a key driver.

Later, the finance minister met with Dev Jagadesan, acting CEO of the US International Development Finance Corporation (DFC), to discuss project pipelines, including Reko Diq, and potential US-Pakistan cooperation.

The minister also met with Baroness Chapman, minister of state for international development of the United Kingdom and thanked her for the UK's longstanding partnership with Pakistan.

He briefed her on the World Bank's 10-year Country Partnership Framework (CPF), focused on population and climate resilience.