ISLAMABAD: Federal Minister for Finance Muhammad Aurangzeb has sounded the alarm on climate change’s impact on Pakistan’s economy, stressing that failure to act could result in severe economic losses.
Speaking at a ceremony in Islamabad on Friday, Aurangzeb highlighted the government’s commitment to tackling climate change through a comprehensive framework.
“We don’t have much time. If we fail to address climate change, our economy will suffer,” the finance minister warned.
Despite challenges, the minister emphasised that Pakistan’s economic condition is improving with continued progress on macro-economic reforms. The finance minister also noted significant advancements in Pakistan’s partnership with the World Bank.
Talking to the media after the ceremony, Finance Minister Aurangzeb said talks with the IMF are in the final stages, and there is no major obstacle to the success of the talks.
The Finance Minister also said Pakistan will soon get good news from the IMF, as talks with the IMF will be completed soon. The federal finance and planning ministries have been engaged in discussions with the International Monetary Fund (IMF) regarding economic and climate-related policies.
On March 3, Pakistan’s delegation submitted a Green Initiative Report to the IMF, detailing key climate projects led by the Planning Ministry. This report was prepared in response to the IMF’s new climate requirements, as revealed by Planning Commission sources.
The IMF has been closely monitoring Pakistan’s integration of climate financing into its economic framework, ensuring it aligns with global sustainability goals.
On February 25, the IMF directed Pakistan’s provinces to collaborate with the federal government in implementing climate financing measures. During high-level negotiations, IMF officials met Finance Ministry representatives to review Pakistan’s economic and climate strategies.
The discussions focused on green budgeting, financial tracking, and policy monitoring mechanisms.
