FinMin calls for action on climate change policies

February 06, 2025 (MLN): The need to adopt policies framed to address climate change-related issues on a fast-track basis was stressed by Minister for Finance and Revenue Senator Muhammad Aurangzeb on Thursday, urging a shift beyond merely discussing policy prescriptions.

“There is no dearth of policy prescriptions; it is all about how and who. I sincerely hope this two-day conference will address the operationalization issues,” he said speaking at the international climate change conference titled “Breathe Pakistan.”

He highlighted that Pakistan is among the most vulnerable countries to climate change and urgently needs to focus on mitigation efforts.

However, he emphasized that the more pressing and significant challenge lies in the full adaptation of policies, both in letter and spirit.

The minister referred to Pakistan's National Adaptation Plan (NAP) and National Climate Finance Strategy (NCFS), which were unveiled in Baku, Azerbaijan, in November 2024.

The strategy was launched at the UN-led COP29 global climate conference, outlining a framework to enhance climate-related investments, attract international funding, and strengthen domestic financial systems.

The minister highlighted the focus on strengthening sectoral resilience, defining institutional roles, and improving access to various funding channels, according to the press release.

He noted that the NCFS was aligned with Pakistan’s Nationally Determined Contributions (NDCs) under the Paris Agreement, aiming to bridge the estimated $348 billion climate finance gap by 2030.

Expressing appreciation for the Vulnerable Twenty (V20) group, he acknowledged their efforts in developing a comprehensive Climate Prosperity plan, set to be unveiled in April.

Aurangzeb also mentioned that the State Bank of Pakistan (SBP) would soon issue detailed guidelines for a green economy framework, covering how to structure, monitor, and finance green initiatives.

 "A green economy framework is essential as we progress," he emphasized.

He also commented on the pledges made by donors, leading financial institutions, and countries during various sessions of the Conference of the Parties (COP) under the United Nations Framework Convention on Climate Change (UNFCCC).

Shifting focus to the national economy, the finance minister highlighted significant macroeconomic progress over the past 12 to 14 months, citing a reduction in the inflation rate to 2.4% in January.

"More importantly, supported by this macroeconomic stability, we are implementing structural reforms and strengthening the tax base," he stated, praising provincial governments for passing agriculture income tax legislation, which he deemed a crucial step toward expanding the tax net.

He also outlined the government's austerity measures, emphasizing efforts to streamline federal ministries and departments, along with the abolition of vacant posts as part of earlier initiatives to reduce government expenditures.

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