FM
FM Aurungzeb talks about Climate Financing in Pakistan to officials at the Finance Ministry.

Finance Minister Muhammad Aurangzeb has emphasized the urgent need to move beyond mere policy formulation and focus on the rapid adoption of strategies to combat climate change. Speaking at the international conference "Breathe Pakistan," the minister highlighted the country's vulnerability to climate-related challenges and the critical importance of implementing existing policies effectively.

"There is no dearth of policy prescriptions; it is all about how and who. I sincerely hope this conference will address the operationalization issues," stated Minister Aurangzeb.
He referenced the National Adaptation Plan (NAP) and the National Climate Finance Strategy (NCFS), unveiled in November 2024 in Baku, Azerbaijan, during COP29. These initiatives aim to scale up climate-related investments, attract international financing, and strengthen domestic financial systems. The NCFS aligns with Pakistan's Nationally Determined Contributions under the Paris Agreement, targeting a $348 billion climate finance gap by 2030.

The minister also acknowledged the efforts of the Vulnerable Twenty (V20) group in developing a comprehensive climate prosperity plan, anticipated to be released in April.
Highlighting financial sector initiatives, Aurangzeb announced that the State Bank of Pakistan (SBP) is preparing to issue comprehensive guidelines on a green economy framework, detailing the structuring, monitoring, and financing of green initiatives. "It is important to have a green economy framework as we move forward," he remarked.
On the economic front, the finance minister noted significant progress over the past year, with inflation dropping to 2.4% in January. He emphasized ongoing structural reforms and efforts to expand the tax net, including recent provincial legislation on agricultural income tax.

Aurangzeb also highlighted the government's austerity measures, such as rightsizing federal ministries and departments and eliminating vacant positions to reduce state expenditures.
In related developments, the finance minister met with former caretaker finance ministers Shahid Javed Burki and Shamshad Akhtar to discuss Pakistan's economic progress and strategic efforts to ensure sustainable growth.