Aurangzeb calls for urgent integration of climate finance into national policy

November 07, 2025 (MLN): If climate priorities are not integrated into national budgets, they cannot become national policy,” said Finance Minister Senator Muhammad Aurangzeb, urging stronger coordination and ownership to mainstream climate finance within Pakistan’s fiscal framework.

Speaking at the 28th Sustainable Development Conference (SDC) organized by the Sustainable Development Policy Institute (SDPI), Aurangzeb emphasized the need for pragmatic and forward-looking approaches to mobilize climate and sustainable finance. 

The session, titled “Mobilizing Finance for Circular South Asia: Blended Finance, Regional Funds and Private Capital,” was held in collaboration with UNESCAP, IGES, and other regional partners.

The minister said Pakistan already has the necessary frameworks, including the National Adaptation Plan, Nationally Determined Contributions (NDCs), Climate Prosperity Plan, Green Taxonomy, and National Climate Finance Strategy, to begin effective implementation of climate action.

He detailed Pakistan’s access to multilateral financing, citing $1.3 billion from the IMF’s Resilience and Sustainability Facility (RSF), $500 million from the Asian Development Bank, and a 10-year, $2 billion annual Country Partnership Framework with the World Bank Group, focused primarily on climate and population challenges.

Aurangzeb, however, cautioned that global climate funds remain limited and bureaucratic, urging Pakistan to rely on domestic resources, private capital, and market-based mechanisms such as green bonds, carbon markets, and debt-for-nature swaps.

He praised initiatives like Acumen’s $90 million Climate Action Fund and Sindh’s mangrove carbon credit project, calling them models for replication nationwide.

The minister also highlighted Pakistan’s growing digital finance ecosystem, noting the establishment of the Pakistan Crypto Council and the upcoming Virtual Asset Regulatory Authority, ensuring that blockchain-based activities remain compliant with regulatory and anti–money laundering safeguards.

Concluding, Aurangzeb reaffirmed the government’s commitment to sustainable, inclusive, and climate-resilient economic growth, stressing that Pakistan must “make the most of existing opportunities and resources before seeking new policy instruments.

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