Prime Minister Shehbaz Sharif made a compelling case for a “course correction” in the global financial architecture, urging world leaders to join hands in solidarity and compassion.
During his participation at the Summit for a New Global Financing Pact in Paris, the prime minister emphasised the necessity of using the present economic and climate turbulence as an opportunity for reevaluation and adjustment.
He highlighted the exogenous shocks faced by developing countries like Pakistan, including stalled growth, supply chain disruptions, extreme weather events, and soaring inflation.
PM Shehbaz called upon the international community to honor their commitments made during the Sharm el-Sheikh Climate Change Conference (COP 27) and operationalise the Loss and Damage Fund, which provides grants to developing countries without increasing their debt burden. He stressed the importance of fairness and a judicious formula for the distribution of financial resources, expressing concern that the response of international institutions to Pakistan’s appeals for funds after the 2022 floods was limited to loans.
During the summit, PM Shehbaz also engaged with the President of the Islamic Development Bank (IsDB), Muhammad Al Jasser, discussing avenues for collaboration and acknowledging IsDB’s significant investment in support of Pakistan’s post-flood recovery. The prime minister highlighted the role of IsDB’s partnership in rebuilding lives and livelihoods and achieving the government’s sustainable development objectives.
French President Emmanuel Macron summed up the summit, stating that there was a “complete consensus” on reforming global financial bodies to enhance efficiency, fairness, and relevance in today’s world. Other world leaders also voiced their support for reforming institutions like the World Bank and IMF, advocating for better management and frameworks for their activities.
Prime Minister Shehbaz’s participation in the summit provided a platform to raise the challenges faced by developing nations, particularly due to climate change. He emphasized the need for a fair and equitable distribution of financial resources, highlighting the disparity between loans offered to countries like Pakistan and the substantial defense expenditures of others.
The prime minister called for economic justice and fairness, envisioning a world where vulnerable nations are supported, harmony is achieved, and peace prevails through a just financial system.
