Saudi luxury tourist destinations unveiled at Karachi event

KARACHI: Prime Minister Shehbaz Sharif on Friday described climate financing as a “crucial component” of addressing the effects of climate change, urging developed nations to honor their commitments during a meeting with the United Nations’ top official in the country.
Despite contributing less than one percent to global carbon emissions, Pakistan remains one of the world’s most climate-vulnerable nations, frequently battered by extreme weather events.
The catastrophic floods of 2022 submerged a third of the country, affecting over 33 million people, killing more than 1,700 and inflicting about $30 billion in damages and economic losses.
In response, Pakistan has led efforts on climate financing, securing pledges at international platforms such as the COP27 climate conference in Egypt to assist in rebuilding climate-resilient infrastructure.
“[The Prime Minister] reaffirmed Pakistan’s strong political commitment to advancing the objective of combating climate change in close collaboration and partnership with the international community and the UN,” the PM Office said in a statement after Sharif’s meeting with UN Resident Coordinator Mohamed Yahya.
“The Prime Minister underscored that climate financing remained a crucial component of addressing the impacts of climate change, and expressed the hope that the developed nations would fulfill their commitments in that regard,” it added.
Pakistan has played a key role in pushing for the operationalization of the Loss and Damage Fund, an initiative to support nations suffering climate-induced destruction, in recent years.
Sharif also emphasized the need for reforms in the global financial system to increase the voice and representation of developing countries in international financial institutions in his meeting with the top UN official, according to the statement.
Last week, the UN Resident Coordinator called for “stronger international solidarity” in rebuilding homes in Pakistan’s flood-affected regions while speaking to Arab News.
He also described it as “unjust” for Pakistan to be asked to take loans for reconstruction, arguing that the crisis was caused by other countries, including 20 nations responsible for 80 percent of global emissions.

KARACHI: A high-level International Finance Corporation (IFC) delegation has met Pakistan’s Finance Minister Muhammad Aurangzeb, the finance ministry said on Friday, weeks after the World Bank pledged $20 billion support to the South Asian country.
The World Bank last month announced supplying Pakistan with $20 billion of loans over the next decade, which are expected to be invested in nutrition, education and renewable energies in the hope of stimulating private-sector growth.
The IFC, a member of the World Bank group, is the largest global development institution focused on the private sector in emerging markets, and its managing-director, Makhtar Diop, is currently leading a delegation to Pakistan.
In his meeting with IFC delegates, Aurangzeb briefed the about Pakistan’s macroeconomic stability on both the debt and equity sides as well as key structural reforms undertaken by his government, according to the Pakistani finance ministry.
“The finance minister highlighted the government’s recent declaration of warehousing as an industry and reaffirmed its commitment to public-private partnerships (PPPs) in infrastructure, IT (information technology), data centers, and AgTech (agricultural technology),” the ministry said in a statement.
“He emphasized that agricultural income tax remains a key area of discussion, alongside the broader goal of capital mobilization, where the private sector must play a leading role. He also noted that several international partners have publicly acknowledged Pakistan’s growing investment potential.”
During the meeting, Diop acknowledged the government’s reform efforts and noted that Pakistani private sector stakeholders had expressed confidence in the current policies, according to the finance ministry.
He commended Pakistan’s Country Partnership Framework (CPF) with the World Bank, recognizing it as one of the best practices globally, and reiterated IFC’s commitment to working closely with Islamabad and providing support in key areas such as green energy, data centers, agricultural supply chain improvements, telecom sector, and digitization.
The World Bank’s lending for Pakistan will start in 2026 and focus on six outcomes: improving education quality, tackling child stunting, boosting climate resilience, enhancing energy efficiency, fostering inclusive development and increasing private investment.
Pakistan nearly defaulted in 2023 on the payment of foreign debts and the International Monetary Fund (IMF) rescued it by agreeing to a $3 billion bailout. Last year, Islamabad secured a new $7 billion loan deal from the IMF. Since then, the country’s economy has started improving with weekly inflation coming down from 27 percent in 2023 to 1.8 percent in January. Pakistan Prime Minister Shehbaz Sharif has vowed to reduce dependence on foreign loans in the coming years.
During the meeting, Finance Minister Aurangzeb also outlined key structural reforms, including the recent introduction of agricultural income tax along with pension reforms and rightsizing initiatives across 43 ministries and 400 attached departments.
“He reaffirmed his government’s commitment to fostering an environment where the private sector leads economic growth, particularly in driving export-led expansion,” the finance ministry added.