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The UK Minister for the Middle East, Afghanistan, and Pakistan, Hamish Falconer, has announced a new climate finance program worth £108 million (37 billion PKR) aimed at promoting new environmental technologies and encouraging private sector investment. This funding will benefit both the planet and Pakistani businesses.
The announcement follows a report highlighting that the cost of inaction on climate change for Pakistan could exceed one trillion dollars over the next 25 years. Falconer emphasized the long-standing collaboration between the UK and Pakistan in tackling contemporary challenges and stated that the new program will support local businesses in addressing climate change, in partnership with the Pakistani government.
This groundbreaking program will be launched in collaboration with the International Finance Corporation (IFC), acknowledging the global threat posed by climate change.
While spokesperson for the Ministry of Economic Affairs announced that a loan agreement has been finalized between Pakistan and the Asian Development Bank (ADB). In a statement, the spokesperson confirmed that under the agreement, ADB will provide Pakistan with a loan of $500 million.
The agreement was signed by Dr. Kazim Niaz, Secretary of Economic Affairs from Pakistan, and Emma Finn, Country Director from ADB. The spokesperson stated that the funds from the loan will be used to address climate change and respond to natural disasters. Federal Minister Ahsan Iqbal emphasized that Pakistan will take all possible measures to tackle climate change and disasters.
It is worth noting that the loan agreement between Pakistan and ADB is for $500 million, and ADB has also stated that a $1 million technical grant will assist in the implementation of the program.
On Monday, the Asian Development Bank (ADB) and the Pakistani government formalized a $500 million policy-based loan aimed at addressing climate change and enhancing disaster resilience in the country. The agreement was signed by ADB Country Director Emma Fan and Pakistan’s Economic Affairs Division Secretary Kazim Niaz.