On the sidelines of COP29, Pakistan unveiled its first-ever National Climate Finance Strategy (NCFS), a key step toward mobilizing financial resources for climate mitigation and adaptation efforts. The strategy was launched at the Pakistan Pavilion in Baku on November 14, 2024, by Federal Finance Minister Muhammad Aurangzeb and the Prime Minister’s Coordinator on Climate Change, Romina Khurshid Alam.
This comprehensive framework aims to scale up climate-related investments, attract international funding, and strengthen domestic financial systems to support the country’s climate resilience goals. The strategy outlines a roadmap for accessing both domestic and international climate finance, aligning with Pakistan’s commitment to the Paris Agreement.
Minister Aurangzeb highlighted that the NCFS would help Pakistan leverage international, domestic, and private financial resources to strengthen climate resilience, particularly focusing on key sectors such as agriculture, infrastructure, and urban planning. The strategy also identifies financial instruments and channels to close the estimated $348 billion climate finance gap Pakistan faces by 2030.
A key feature of the strategy is the introduction of a National Climate Finance Portal, designed to track climate finance inflows and outflows, ensuring transparency and accountability.
Prime Minister Shehbaz Sharif, who spoke at various events during COP29, reiterated the urgency of restoring confidence in the climate finance pledging process and advocated for increased funding for vulnerable, developing countries. Pakistan, ranked the 5th most vulnerable country to climate change according to the Global Climate Risk Index, continues to face significant challenges. The 2022 floods alone resulted in over 1,700 deaths and affected more than 33 million people, causing economic losses exceeding $30 billion.
At COP29, the main goal for nearly 200 participating countries is to secure trillions of dollars in climate finance to fund global climate projects. Pakistan, as one of the countries hit hardest by climate disasters, continues to press for greater financial support. Prime Minister Sharif pointed out that developing countries will need an estimated $6.8 trillion by 2030 to meet their climate action goals outlined in the Paris Agreement.
Despite pledges of over $9 billion from international donors for Pakistan’s flood recovery, little of that funding has been received so far, highlighting ongoing challenges in fulfilling climate finance commitments.
