The United Kingdom government has announced £108 million in funds to support Pakistani businesses adapt to climate challenges.
The announcement was made at the conclusion of the two-day visit by Hamish Falconer, the British Parliamentary Under-Secretary of State for the Middle East, Afghanistan and Pakistan Hamish Falconer to Islamabad on Friday
Announcing the new funding in Islamabad, Hamish Falconer said: “The UK and Pakistan are committed to tackling tomorrow’s threats today. That’s why we’re investing in the expertise needed and supporting local businesses, alongside the Government of Pakistan, to get ahead of the challenges that climate change poses to the Pakistani people and the world.”
He added that “From my own time working as a diplomat in Pakistan to now returning as a Minister, it’s clear that the UK and Pakistan’s partnership continues to go from strength to strength and is essential in tackling shared global challenges.”
The UK Minister held meetings with Pakistan’s Interior Minister Mohsin Naqvi, Foreign Minister Ishaq Dar, National Assembly Speaker Sardar Ayaz Sadiq, and Federal Minister for Law and Justice Azam Tarar to strengthen bilateral ties and address mutual challenges. Discussions focused on regional stability, de-escalation in the Middle East, and the promotion of democracy, fundamental freedoms, and shared values. The UK reaffirmed its commitment to working with Pakistan on economic prosperity, democracy, climate change, and security issues.
Climate investment to help create 100,000 jobs in Pakistan
“The program will leverage the £108 million the UK puts in to mobilize 5-6 times that amount of investment from the private sector and will support the creation of over 100,000 Pakistani jobs,” the British government said on its official website.
This initiative follows the launch of the British High Commission Pakistan’s Cost of Inaction Report, which highlights the estimated cost of inaction on climate change for Pakistan is over one trillion dollars over the next 25 years.
The program is a central part of the UK’s Climate Investment Fund Pakistan program (CIFPAK), which is providing a range of initiatives aimed at encouraging private sector investment and providing the finance that local businesses need to get ahead of this global threat. The UK and IFC will then reinvest any profits from projects back into the facility, financing even more climate solutions.
Pakistan is among the countries most at risk from climate change, according to the Global Climate Risk Index. The catastrophic floods of 2022 impacted over 33 million people, resulted in more than 1,700 deaths, and caused an estimated $33 billion in damages.
Climate initiative in partnership with IFC
This first-of-its-kind program will be delivered in partnership with the International Finance Corporation (IFC). As the largest single-country blended finance facility, IFC will invest in local businesses to help them develop the technologies and meet the significant investments needed to adapt to the threats Pakistan faces from climate change.
“This facility reflects IFC’s commitment to supporting Pakistan’s climate resilience and adaptation efforts. We are pleased to be partnering with the UK government on an innovative facility that will help crowd-in much needed private investment,” IFC Country Manager for Pakistan & Afghanistan, Zeeshan Sheikh, said.
“As a leading global investor in climate finance, IFC aims to leverage its experience and catalyze private sector financing for climate-smart investments in Pakistan and build a sustainable climate finance ecosystem,” Sheikh added,