Advancing Pakistan Climate Resilience by Catalyzing Innovative SDGs Financing
Ambassador Munir Akram Permanent Representative of Pakistan to the UN.
Excellencies, colleagues, participants, I would begin by thanking UN-DESA and UNDP for organising this side event focused on catalyzing Innovative SDGs financing for advancing Pakistan’s Climate Resilience.
The Government of Pakistan is wholly committed to achieving the 2030 Agenda for Sustainable Development and its goals.
However, due to a disrupted growth trajectory, the COVID-19 pandemic, the ongoing food, fuel and finance crisis and the catastrophic floods of 2022, our fiscal space for development expenditure has shrunk.
Pakistan’s annual financing gap for the SDGs stands at USD 3.72 billion for the period 2020-2030.
Compounding this is our vulnerability to climate change. Being one of the top 10 countries in the world most vulnerable to climate change, our adaptation needs are immense; estimated to costing between US$7-14 billion per annum.
The catastrophic floods of 2022 have caused US$ 14.9 billion in damages, US$ 15.2 billion in economic losses. Recovery needs alone are estimated to be US$16 billion.
In the aftermath of the floods, it was evident to us that a comprehensive plan would be required to ensure a long-term resilient recovery.
It is for this reason that Government of Pakistan developed the ‘Resilient Recovery, Rehabilitation, and Reconstruction Framework’ (4RF), which was presented at the ‘International Conference on Climate Resilient Pakistan’ in Geneva.
The 4RF provides an overarching framework for planning, financing, implementing and monitoring Pakistan’s recovery. We are currently in the process of ‘projectizing’ this framework and hope to gain the support of the international community in implementation.
It is clear that enhanced partnerships with the international community, and with both public and private actors, are essential in order to get back on track towards achieving the SDGs. The role of the private sector is an important component in bridging the SDG Financing gap.
It is for this very reason that, in 2021, the Ministry of Foreign Affairs, Board of Investment, and other stakeholders, with support from UNDP Pakistan, launched the Pakistan SDG Investment Report 2021, entitled, ‘Leveraging Private Investments for Pakistan’s Sustainable Development’.
The report identified priority and investment-ready development sectors, such as climate change, energy, health education, infrastructure, and information technology, and mapped out flexible investment options to global investors.
In continuation of these efforts, I am pleased to announce that, with the core support of UNDP, we have developed Pakistan’s first-ever SDG Investor Map.
The Map is a dynamic impact intelligence tool that identifies a range of market-specific investment opportunities in Pakistan for SDG-aligned capital deployment, backed by Pakistan-specific data and evidence.
The Map will highlight bankable investment opportunity areas which, if prioritized, can lead to a reduced trade deficit; gradual transition to alternate and renewable energy; sustainable production and consumption patterns; robust infrastructure; and enhanced food security.
Through today’s session, we will present a few options in Pakistan’s country portfolio of bankable investments, which demonstrate our capacity to structure ‘green bankable propositions’ , such as climate bonds.
I would conclude by expressing appreciation for the work of the Pakistan SDGs Investments & Climate Financing Facility, set up jointly by the Finance Ministry, Government of Pakistan and UNDP.
Our close collaboration will undoubtedly continue to aid in identifying, developing, and leveraging high-impact SDG-aligned and climate financing value propositions to attract SDG investments in Pakistan.
This is essential in order to bridge Pakistan’s development financing gap, mobilise private capital for post-disaster development needs and recovery, and accelerate the achievement of SDGs.
Sub Editor: Arslan M