Lahore, Pakistan – Federal Finance Minister Muhammad Aurangzeb has issued a stark warning that Pakistan’s economy faces severe risks if immediate steps are not taken to combat climate change. Speaking at a ceremony on World Glacier Day in Lahore on Friday, he emphasized that the country is running out of time to address the growing environmental crisis.
Climate Change Threats to Pakistan
The finance minister highlighted several key environmental concerns affecting Pakistan, particularly the rapid melting of glaciers and worsening air pollution in major cities. He pointed out that smog in Lahore is already hampering economic activities, while low winter rainfall indicates a potentially catastrophic environmental shift.
“Our water cycle is being disrupted, and the impact of climate change is intensifying,” Aurangzeb noted. “If we fail to act now, the consequences for our economy will be devastating.”
Climate Financing and International Support
Aurangzeb stressed the importance of climate financing in tackling the crisis and revealed that Pakistan had recently engaged in productive discussions with the International Monetary Fund (IMF) regarding financial assistance for climate initiatives.
He further disclosed that while Pakistan was promised $10 billion in aid for flood rehabilitation projects, a lack of well-structured proposals had prevented the funds from being utilized effectively. “We need to design solid projects to access climate financing,” he remarked, ensuring that the Ministry of Finance is committed to supporting climate action efforts.
New Climate Resilience Fund Announced
To address the crisis, Aurangzeb announced plans to establish a dedicated fund system focused on climate resilience. This initiative aims to mobilize resources and ensure that Pakistan is better prepared to handle environmental challenges.
Institutional Strengthening & World Bank Partnership
Aurangzeb also highlighted ongoing progress in Pakistan’s Country Partnership Framework with the World Bank, which focuses on enhancing institutional capacity for climate-related projects. He stressed the urgent need for effective planning and execution to secure international funding and make meaningful progress in combating climate change.
“The time to act is now,” he cautioned. “Climate change and population growth are the two biggest challenges we face, and if left unchecked, they will severely impact Pakistan’s economic future.”
