Pakistan has unveiled its first-ever National Climate Finance Strategy (NCFS), which aims to mobilize financial resources to address the country’s escalating climate challenges.
The strategy, presented on the sidelines of COP29 in Baku (Azerbaijan), is designed to strengthen Pakistan’s climate resilience through enhanced investments in mitigation and adaptation efforts. The announcement was made during a session at the Pakistan Pavilion in Baku, with key officials, including Federal Finance Minister Muhammad Aurangzeb and Prime Minister’s Coordinator on Climate Change Romina Khurshid Alam, jointly launching the strategy.
The NCFS outlines a comprehensive approach to mobilizing climate finance from both domestic and international sources. It focuses on scaling up climate-related investments, attracting global climate funds, and strengthening domestic financial systems to ensure long-term climate resilience.
Historic step for Pakistan’s Climate Future
Pakistan’s Finance Minister Muhammad Aurangzeb described the launch of the NCFS as a moment of great pride, emphasizing its importance in providing a clear roadmap for securing climate finance through various channels. “The NCFS is based on principles of transparency, accountability, and inclusivity, and will help Pakistan systematically access and secure funding from available climate finance avenues,” he said during the session. He further highlighted that the strategy is pivotal to Pakistan’s commitment to the Paris Agreement and is designed to integrate private sector engagement, international climate finance, and carbon markets to achieve climate goals.
“The strategy identifies sectoral priorities and outlines measures to leverage various financial instruments to support climate resilience initiatives, which paints a clear framework for climate finance from various channels,” Aurangzeb added.
Addressing Pakistan’s Climate Finance Gap
Pakistan, ranked among the top 10 most climate-vulnerable countries, has faced severe climate impacts, including the catastrophic 2022 floods, which resulted in an estimated $30 billion in losses and affected around 33 million people. The NCFS aims to address this significant climate finance gap, which Pakistan estimates will reach $348 billion by 2030 to meet the country’s climate-resilient and low-carbon development goals.
In her keynote remarks, Romina Khurshid Alam, the Prime Minister’s Coordinator on Climate Change, said the NCFS is a critical step towards closing this gap. “This strategy outlines a path to bridge the significant climate finance gap facing Pakistan—a gap we estimate at $348 billion by 2030 for our climate-resilient and low-carbon development goals,” she explained. he NCFS will be complemented by a national climate finance portal, which will provide transparency by tracking all climate finance inflows and outflows.
Roadmap for Resilience and Sustainability
Romina Khurshid Alam further emphasized that the NCFS focuses on a whole-of-economy approach to climate finance, aiming to “climate-proof” investments and allocate resources to Pakistan’s most vulnerable sectors and communities. She highlighted that the strategy also aligns with Pakistan’s long-term vision for climate resilience, which includes resilient infrastructure, climate-smart agriculture, and ecosystems that provide diversified livelihoods.
She highlighted that Pakistan’s climate resilience vision 2050 encompasses resilient infrastructure and agriculture, climate-smart cities, and ecosystems that provide diversified livelihoods.
“The NCFS is a well-thought-out roadmap with three key components: whole-of-government alignment, diversified domestic resources, and innovative funding mechanisms,” Alam stated. “This approach will be instrumental in unlocking climate finance at scale.” She also stressed that the strategy prioritizes inclusivity, with a focus on empowering marginalized groups, especially women, and integrating circular economy principles to drive resource efficiency and sustainable development.
Commitment to Transparency and Accountability
One of the core principles of the NCFS is transparency and accountability. The strategy includes a robust three-tiered monitoring system to ensure that all efforts are aligned with Pakistan’s climate goals and commitments.
Aisha Humera Moriani, Secretary of the Ministry of Climate Change and Environmental Coordination, welcomed the unveiling of the strategy at COP29, reaffirming Pakistan’s commitment to multilateral climate action. “Today, as we join COP29, we reaffirm our shared commitment to climate finance, focusing on the essential role it plays in addressing climate change,” Moriani said.
She outlined the NCFS’s key objectives: enhancing sectoral resilience, clarifying institutional roles, and expanding access to climate finance. “This framework builds on our National Climate Change Policy and emphasizes emissions reduction targets in our Nationally Determined Contributions (NDCs)—50% by 2030, with 15% reduction through domestic efforts and the remaining 35% contingent on international support,” she added.
Global support for Pakistan’s climate efforts
The launch of Pakistan’s NCFS garnered praise from international stakeholders, underscoring the importance of global collaboration in addressing climate challenges. WWF President Adil Najam emphasized the need for developed countries to fulfill their climate finance commitments to vulnerable nations like Pakistan. He also showed concern about the slow pace of the climate fiancé being provided by the developed countries.
Mohamed Nasheed, Secretary General of the Climate Vulnerable Forum (CVF) and V20, also stressed the urgency of joint efforts to combat the risks posed by climate change. Developing countries must unite and raise their voices to ensure that climate finance is allocated equitably to tackle the pressing challenges, Nasheed said.
Tom Kerr, Lead Climate Specialist for South Asia at the World Bank, echoed these sentiments, emphasizing the vulnerability of South Asia to climate change impacts and the need for regional cooperation to build climate resilience.
The unveiling of the NCFS is a landmark achievement for Pakistan in its fight against climate change. By creating a comprehensive framework for climate finance, Pakistan aims to not only protect its most vulnerable communities but also position itself as a leader in climate action in the region. With a transparent, accountable, and inclusive approach, the NCFS sets the stage for a more sustainable and climate-resilient future for Pakistan.