Web Desk

ISLAMABAD: Pakistan&rsquo;s Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, on Sunday underscored that the two critical long-term challenges facing Pakistan were population growth and climate change.&nbsp; The finance minister departed for the United States to participate in the World Bank Group&ndash;IMF Spring Meetings 2026, scheduled to be held in Washington, DC from April 13 to 18, 2026, where he is set to meet senior International Monetary Fund (IMF) leadership and discuss the country&rsquo;s macroeconomic outlook, reform progress, and future cooperation on his Washington trip.&nbsp; While participating in a high-level panel discussion at Harvard University, the finance minister emphasized that sustained economic progress would not be possible without addressing rapid population growth, and highlighted Pakistan&rsquo;s increasing vulnerability to climate-related shocks and the need for greater focus on resilience and adaptation. According to a statement issued on the Ministry of Finance&rsquo;s X account, the finance minister acknowledged that further work was required in areas such as regulatory reform and ease of doing business, noting that these remain key priorities for improving the investment climate. The minister reaffirmed the government&rsquo;s commitment to structural reforms, including taxation, which has shown progress but remained below desired levels. He highlighted the ongoing transformation efforts within the Federal Board of Revenue, further emphasizing the need to move away from a model of perpetual subsidies for industry, advocating instead for competitiveness and export-led growth.&nbsp; The minister also highlighted the trade liberalization measures, including tariff rationalization, aimed at encouraging efficiency and integration into global markets. According to the finance minister, Pakistan&rsquo;s solar generation had reached approximately 8,000 megawatts. He underscored the government&rsquo;s ambition to significantly increase the share of renewables in the energy mix over the coming decade. The session was moderated by former Governor of the State Bank of Pakistan, Dr Reza Baqir, and included&nbsp;panelists such as Princeton University&#39;s Professor Atif Mian and Nobel Laureate and Massachusetts Institute of Technology&#39;s Professor Daron Acemoglu.&nbsp; &nbsp;

Climate & Environment

While participating in a high-level panel discussion at Harvard University, finance minister emphasizes sustained economic progress will not be possible without addressing rapid population growth, while also highlighting Pakistan’s increasing vulnerability to climate-related shocks and the need for greater focus on resilience and adaptation.

At Harvard, Pakistan's finance chief highlights population, climate as key future challenges

ISLAMABAD: &nbsp;Pakistan and Norway on Wednesday signed the first landmark bilateral agreement under Article 6.2 of the Paris Agreement, opening the door to international carbon trading, climate finance and major investment in clean energy and climate-smart agriculture, according to a statement by Ministry of Climate Change and Enviromental Coordination.&nbsp;As per it, the memorandum of understanding (MOU) was signed in Islamabad under the auspices of the Ministry of Climate Change and Environmental Coordination, marking Pakistan formal entry into the global carbon market. This is seen as a breakthrough in the country&rsquo;s climate diplomacy, said the statement.&nbsp;Federal Minister for Climate Change and Environmental Coordination Musadik Malik termed the agreement a &ldquo;historic milestone&rdquo;, saying it would shift Pakistan from carbon market preparedness to practical implementation, said the statement.&nbsp;&ldquo;This is Pakistan&rsquo;s first bilateral agreement under Article 6.2 and an important step towards implementation,&rdquo; Malik said. &ldquo;It creates a credible pathway for international cooperation and investment in Pakistan&rsquo;s climate priorities.&rdquo;&nbsp;Under the agreement, Pakistan will be able to develop &ldquo;carbon-credit generating projects&rdquo; in sectors such as clean energy, agriculture, transport and waste management and potentially sell the resulting emission reductions to Norway, as per the statement.&nbsp;Officials said the deal would help channel international finance into Pakistan at a time when the country is grappling with recurring floods, heatwaves and other climate shocks.&nbsp;Malik said the agreement would strengthen Pakistan&rsquo;s position in international carbon markets and create new opportunities for the country&rsquo;s emerging green economy, added the statement.&nbsp;&ldquo;Carbon markets cannot be treated as an end in themselves,&rdquo; he said.&nbsp;&ldquo;They must help countries like Pakistan finance transition pathways, create jobs, attract technology and deliver real benefits to communities.&rdquo;&nbsp;The minister said Pakistan had already put in place the country&rsquo;s first national policy guidelines for carbon trading, approved by the federal cabinet in January 2025, and was now moving to establish rules, reporting systems and bilateral arrangements needed to operationalize the market.&nbsp;He said Pakistan had &ldquo;strong mitigation potential&rdquo; in sectors such as renewable energy, agriculture, transport and waste management, and that the agreement would encourage project developers and investors to move forward, said the statement.&nbsp;Addressing at the signing ceremony, Norway&rsquo;s Ambassador to Pakistan Per Albert Ilsaas said the accord marked the beginning of a new era in bilateral environmental cooperation.&nbsp;&ldquo;Pakistan is among the countries most affected by climate change, and we believe this partnership can deliver both measurable emission reductions and real development benefits,&rdquo; he said.&nbsp;The ambassador said Norway, which aims to become climate neutral by 2030, was seeking to purchase Internationally Transferred Mitigation Outcomes (ITMOs) under Article 6, not to meet its formal climate targets but to go beyond them.&nbsp;&ldquo;Norway is not purchasing ITMOs to meet its nationally determined contribution targets. We are purchasing them to achieve climate neutrality beyond those commitments,&rdquo; he said.&nbsp;Mr Ilsaas said Norway&rsquo;s Global Emission Reduction Initiative, launched in 2024 with a budget of $1.5 billion approved by the Norwegian parliament, would provide carbon finance to countries such as Pakistan.&nbsp;&ldquo;Through NOGER, we want to channel carbon finance into countries such as Pakistan and help bridge the gap in climate mitigation finance,&rdquo; he said.&nbsp;He added that Norway was looking beyond individual carbon-credit projects and was interested in large-scale programmes in renewable energy, industry and agriculture.&nbsp;&ldquo;We are looking beyond individual projects,&rdquo; the ambassador said. &ldquo;We are interested in cooperation across entire sectors where climate policies can generate emission reductions at scale.&rdquo;&nbsp;The ambassador said Norway had already signed similar agreements with Benin, Indonesia, Zambia, Jordan and Senegal and was working to buy 15 million carbon credits by 2030.&nbsp;He also invited Pakistan to present a broader pipeline of projects, specifically pointing to renewable energy ventures such as the Zhenfa 100-megawatt solar project and the Indus wind energy project as possible candidates for future cooperation.&nbsp;Both sides also agreed that the new ambitious pact could significantly boost Pakistan&rsquo;s access to climate finance and private-sector investment, while helping the country pursue low-carbon growth and meet its climate commitments under the Paris Agreement.

Islamabad secures landmark climate accord to unlock green investment, clean energy and international carbon finance

Pakistan, Norway sign landmark Paris Agreement carbon trading climate deal

ISTANBUL: The UN&#39;s climate chief on Thursday urged countries to unite against an &quot;unprecedented threat&quot; to international cooperation from pro-fossil fuel forces &mdash; issuing the appeal as US President Donald Trump rattles the global order. Simon Stiell, the head of the United Nations climate body, spoke in Istanbul as Turkey prepares to host the COP31&nbsp;<a href="https://www.pakistantv.com/article/ndma-issues-weather-warning-for-balochistan-northern-areas-of-pakistan" style="color:#0073e6;">climate summit</a>&nbsp;on its Mediterranean coast later this year, with Australia leading the&nbsp;<a href="https://www.pakistantv.com/article/parties-must-address-environment-in-election-manifestos-bangladeshi-climate-adviser" style="color:#0073e6;">negotiations</a>. &quot;COP31 in Antalya will take place in extraordinary times. We find ourselves in a new world disorder,&quot; Stiell said in an address alongside the president-designate of COP31, Turkish environment minister Murat Kurum. &quot;This is a period of instability and insecurity. Of strong arms and trade wars. The very concept of international cooperation is under attack,&quot; he said. He did not name any countries but his plea comes as climate action is competing with concerns over security and economic growth around the world. Trump has championed oil, gas and coal while moving to withdraw the United States from the UN&#39;s bedrock climate treaty after pulling out of the Paris Agreement, the landmark deal reached in 2015 on curbing global warming. Stiell said in a news conference that the &quot;door remains open&quot; to welcoming the United States back to the fold. The American leader, who has called global warming a &quot;hoax,&quot; revoked on Thursday a landmark scientific finding that underpins US regulations aimed at curbing planet-warming pollution. Trump has also rattled European allies with his desire to acquire Greenland, as shrinking Arctic Sea ice is turning the region into a strategic battleground. &#39;Antidote to the chaos&#39;&nbsp;Other nations have&nbsp;<a href="https://www.pakistantv.com/article/pakistan-disaster-authority-flash-flood-alert-for-northern-pakistan-amid-incoming-westerly-wave" style="color:#0073e6;">resisted</a>&nbsp;moving away from oil, gas, and coal. The COP30 summit in Brazil late last year ended with a modest deal that lacked any explicit mention of fossil fuels amid opposition from oil giants such as Saudi Arabia, coal producer India and others. The United States, the world&#39;s top economy and second-biggest polluter after China, shunned COP30. The last three years have been the hottest globally on record, driven by rising greenhouse gas emissions that are causing climate change. Stiell warned that international climate cooperation was &quot;under unprecedented threat: from those determined to use their power to defy economic and scientific logic, and increase dependence on polluting coal, oil and gas.&quot; &quot;Those forces are undeniably strong. But they need not prevail. There is a clear alternative to this chaos and regression,&quot; he said. &quot;And that is countries standing together, building on all we have achieved to date, to make it (international global cooperation) go further and faster.&quot; He noted that investment in clean energy was more than double that of fossil fuels last year, while renewables overtook coal as the top electricity source. &quot;Security is the word on most leaders&#39; lips, yet many cling to a definition that is dangerously narrow,&quot; Stiell said, warning that rising greenhouse gases mean &quot;escalating climate extremes fuelling famine, displacement, and war.&quot; Stiell urged nations to deliver on their 2023 agreement at COP28 in Dubai to triple clean energy capacity by 2030 and transition away from fossil fuels, and for the most ambitious to form &quot;coalitions of the willing.&quot; &quot;Climate cooperation is an antidote to the chaos and coercion of this moment, and clean energy is the obvious solution to spiraling fossil fuel costs, both human and economic,&quot; he said. Turkey will host COP31 while Australia will chair the negotiations under a compromise that was agreed late last year to end a dispute over where the event would take place. Kurum said Turkey and Australia would work together to present a &quot;robust&quot; COP31 action agenda in March. &quot;Regression in global climate action is unacceptable,&quot; Kurum said.

Climate

Stiell warns international climate cooperation "under unprecedented threat: from those determined to use their power to defy economic and scientific logic, and increase dependence on polluting coal, oil and gas."

UN climate chief says 'new world disorder' threatens cooperation

WASHINGTON: President Donald Trump is withdrawing the United States from a foundational climate treaty and the world&#39;s leading global warming assessment body, as part of a sweeping exit from the United Nations system, the White House announced Wednesday. A total of 66 international organizations were named in a White House memorandum as &quot;contrary to the interests of the United States.&quot; Most notable among them is the United Nations Framework Convention on Climate Change (UNFCCC), the parent treaty underpinning all major international climate agreements. Trump, who has thrown the full weight of his domestic policy behind fossil fuels, has openly scorned the scientific consensus that human activity is warming the planet, deriding climate science as a &quot;hoax&quot; at the UN&#39;s high-level summit last September. The UNFCCC was adopted at the Rio Earth Summit in June 1992 and approved later that year by the US Senate during George H.W. Bush&#39;s presidency. The US Constitution allows presidents to enter treaties &quot;provided two thirds of Senators present concur,&quot; but it is silent on the process for withdrawing from them &mdash; a legal ambiguity that could invite challenges. Trump has already withdrawn from the landmark Paris climate accord since returning to office, just as he did during his first term, a move that Democratic president Joe Biden later reversed. Exiting the underlying treaty could introduce additional legal uncertainty around any future US effort to rejoin. &quot;President Trump&#39;s withdrawal of the United States from the bedrock global treaty to tackle climate change is a new low and yet another sign that this authoritarian, anti-science administration is determined to sacrifice people&#39;s well-being and destabilize global cooperation,&quot; Rachel Cleetus of the Union of Concerned Scientists told AFP. The memo also directs the United States to withdraw from the Intergovernmental Panel on Climate Change, the UN body responsible for assessing climate science, alongside other climate-related organizations including the International Renewable Energy Agency, UN Oceans and UN Water. As in his first term, Trump has also withdrawn the United States from the Paris Agreement and from UNESCO &mdash; the UN Educational, Scientific and Cultural Organization &mdash; which Washington had rejoined under Biden. Trump has likewise pulled the US out of the World Health Organization and sharply reduced foreign aid, slashing funding for numerous UN agencies and forcing them to scale back operations on the ground, including the High Commissioner for Refugees and the World Food Program. Other prominent bodies named in the memo include the UN Population Fund (UNFPA), which works on sexual and reproductive health and rights, and the UN Conference on Trade and Development (UNCTAD), which focuses on trade, investment and development. Speaking before the General Assembly in September, Trump delivered a scathing broadside against the UN, saying it was &quot;not even coming close to living up&quot; to its potential.

Americas

A total of 66 international organizations are named in a White House memorandum as "contrary to the interests of the United States"; most notable among them is the United Nations Framework Convention on Climate Change, the parent treaty underpinning all major international climate agreements.

Trump pulls US out of key climate treaty, science body: White House

RABAT: Flash-flooding caused by sudden, heavy rain killed at least 21 people in the Moroccan coastal town of Safi on Sunday, local authorities said. Images on social media showed a torrent of muddy water sweeping cars and rubbish bins from the streets in Safi, which sits around 300 kilometres (186 miles) south of the capital Rabat. At least 70 homes and businesses in the historic old city were flooded, authorities said. Another 32 people were injured and taken to hospital, but most of them have been discharged. Damage to roads cut off traffic along several routes to and from the port city on the Atlantic coast. &quot;It&#39;s a black day,&quot; resident Hamza Chdouani told AFP. By evening, the water level had receded, leaving people to pick through a mud-sodden landscape to salvage belongings. Another resident, Marouane Tamer, questioned why government trucks had not been dispatched to pump out the water. As teams searched for other possible casualties, the weather service forecast more heavy rain on Tuesday across the country. Severe weather and flooding are not uncommon in Morocco, which is struggling with a severe drought for the seventh consecutive year. The General Directorate of Meteorology (DGM) said 2024 was Morocco&#39;s hottest year on record, while registering an average rainfall deficit of -24.7 percent. Moroccan autumns are typically marked by a gradual drop in temperatures, but climate change has affected weather patterns and made storms more intense because a warmer atmosphere holds more moisture and warmer seas can turbocharge the systems.&nbsp;

Africa

Flash floods triggered by heavy rain killed 21 people in Morocco’s coastal town of Safi, flooding homes, damaging roads and vehicles, injuring dozens, and highlighting worsening extreme weather linked to climate change

Flash floods kill 21 in Moroccan coastal town

Maryam Shah

ISLAMABAD: The catastrophic floods that have killed more than 1,200 people across Southeast Asia in recent weeks are not a distant warning for South Asia but &ldquo;a mirror of what Pakistan has already experienced and will face again,&rdquo; according to climate scientists.&nbsp;Across Indonesia and Sri Lanka, rapid heatwaves followed by early monsoon onset and cloudburst-style rainfall, the same sequence that devastated Pakistan in 2022 and again in 2025, have displaced more than 1.5 million people since late November.&nbsp;&ldquo;South Asia has entered &lsquo;new operating conditions&rsquo; where traditional monsoon timelines no longer apply,&rdquo; said Dr. Zainab Naeem, an environmental sciences researcher at the Sustainable Development Policy Institute. Speaking to Pakistan TV Digital, she added: &ldquo;What&rsquo;s happening in Southeast Asia right now mirrors exactly what we&#39;ve been experiencing in Pakistan.&rdquo;&nbsp;Parallel crises across regionIn Indonesia, the island of Sumatra recorded 604 deaths after a rare tropical storm triggered widespread flash floods and landslides. In Sri Lanka, Cyclone Ditwah killed at least 355 people and forced nearly 180,000 residents into emergency shelters. In both countries, prolonged dry spells were followed by sudden, moisture-laden systems that unleashed months&rsquo; worth of rainfall in a matter of days.&nbsp;Asia warming faster than global averageAccording to regional climate assessments, Asia is warming nearly twice as fast as the global average, leading to more frequent and more intense extreme weather events. In 2023 alone, the continent experienced 79 water-related disasters, the majority of them floods and storms.&nbsp;Pakistan has already felt the force of this shift. The 2022 floods submerged one-third of the country, killed more than 1,700 people, and caused damages and economic losses estimated at $30 billion, according to the Post-Disaster Needs Assessment and World Bank figures.&nbsp;This year, unseasonably early monsoon systems again triggered deadly flooding across multiple provinces.&nbsp;Women face disproportionate impactsWomen remain at heightened risk during climate-driven disasters. During Pakistan&rsquo;s 2022 floods, the UN Population Fund estimated that 650,000 pregnant women were in affected areas, with around 73,000 expected to give birth without access to maternal health services.&nbsp;Protection systems frequently collapse in displacement camps, increasing incidents of gender-based violence. Women, who often work agricultural land without legally owning it, are also excluded from compensation schemes when crops are destroyed.&nbsp;Science&ndash;policy gap leaves countries exposedDespite growing scientific clarity, preparedness remains uneven across the region.&nbsp;&ldquo;The biggest problem is not the absence of policies, it&rsquo;s the disconnect between high-level frameworks and ground implementation,&rdquo; Dr. Naeem said. &ldquo;Technical expertise is missing in many departments. Without integrating scientific evidence into urban planning and governance, we simply cannot manage these impacts.&rdquo;&nbsp;Cities across South and Southeast Asia continue to expand into flood-prone zones, while drainage systems and protective infrastructure remain outdated or overstretched.&nbsp;Warning Pakistan cannot ignoreRescue operations in Indonesia and Sri Lanka are ongoing, with military aircraft airlifting patients from inundated hospitals and naval vessels delivering supplies to isolated districts. The events underscore a clear message for Pakistan: such disasters are no longer &ldquo;once in a generation.&rdquo;&nbsp;Regional environmental agencies stress the urgent need to strengthen early-warning systems, redesign land-use planning, and invest in climate-resilient infrastructure. Without such measures, they warn, human and economic losses will accelerate.&nbsp;Pakistan&rsquo;s 2022 floods were described as unprecedented. Three years later, similarly devastating events have become routine across Asia. The question is no longer whether such disasters will strike again, but whether governments will be prepared when they do.

A woman carrying a child wades through a flooded street after heavy rainfall in Wellampitiya on the outskirts of Colombo on November 30, 2025, after a powerful cyclone. (AFP)

Natural Disaster

In regions across Asia, intensifying heatwaves, early monsoons and extreme floods are overwhelming communities, exposing weak infrastructure and highlighting urgent need for climate-resilient planning protection.

Southeast Asia’s deadly floods echo Pakistan’s escalating climate extremes

ISLAMABAD: A 4&deg;C rise in global temperatures could melt up to 85% of Pakistan&rsquo;s glaciers, threatening the country&rsquo;s water supply, agriculture, and food security, Pakistan&rsquo;s climate minister said ahead of the 30th meeting of the Conference of the Parties (COP30). The country&#39;s&nbsp;Minister for Climate Change Dr Musadik Malik called the glaciers &quot;the bloodline and lifeline of our civilization.&quot; He said they feed Pakistan&rsquo;s rivers and sustain agriculture. &quot;A 4&deg;C rise in temperature can wash away about 85% of these glaciers,&quot; he said. &quot;That would devastate our irrigation systems and agriculture, threatening food security for millions.&quot; The climate minister also criticized the inequity of climate finance, noting that 55% of global carbon emissions come from just three countries. &quot;Countries like Pakistan, which contribute little to the carbon footprint, are among the most vulnerable,&quot; he said. He urged wealthier nations to take more responsibility and help developing countries adapt to climate change. &quot;This is not just an issue of civilization; it is an issue of justice and rights,&quot; he said. The minister highlighted Pakistan&rsquo;s efforts to combat climate change, including the installation of over 14 gigawatts of solar power, policies promoting electric vehicles, and reforestation projects. &quot;We are doing this for our children,&quot; he said. Malik also pointed to early warning systems designed to help communities prepare for climate-induced disasters such as floods and heatwaves. COP30 The COP30 is taking place in Bel&eacute;m, Brazil, from November 10 to 21. It brings together world leaders, climate scientists, NGOs, and indigenous peoples to advance climate action. Key goals include assessing progress on the Paris Agreement, increasing climate finance, and focusing on forest protection and indigenous rights, with special attention to the Amazon.

A 4°C rise in temperature could melt 85% of Pakistan’s glaciers, threatening agriculture and water security, Pakistan’s climate minister said at COP30 in Brazil.

Higher temperatures to affect Pakistan's water supplies, threaten food security: climate minister

Pakistan TV Satellite

ISLAMABAD: Minister of State for Climate Change Dr. Shezra Mansab Ali Khan has said Pakistan is facing a critical moment as climate vulnerability intensifies alongside rapid population growth, and urgent coordinated action is needed to secure the country&rsquo;s future.&nbsp; In an exclusive interview with Pakistan TV, Dr. Shezra Mansab Ali Khan stressed that population management and climate resilience must be addressed together, not as separate issues. She warned that Pakistan&rsquo;s population is expected to double by 2050, placing immense strain on natural resources, infrastructure, and sustainability.&nbsp; &ldquo;Religious leaders must play a role in awareness, and the government is actively promoting responsible population management,&rdquo; she said, adding that &ldquo;this is directly tied to our country&rsquo;s resilience and long-term stability.&rdquo; The minister of state said the private sector is ready to contribute to national climate efforts, but the right frameworks must be created.&nbsp; &ldquo;We need integrated policies where the private sector and international partners can meaningfully participate. Pakistan cannot manage this alone,&rdquo; she noted. Dr. Shezra Mansab also highlighted serious disparities in global climate finance access.&nbsp; Referring to the Loss and Damage Fund announced after the 2022 floods, she stated that despite commitments, no funds have yet been released to any affected country.&nbsp; &ldquo;We worked hard to establish that fund. Now, it must be operational. Countries like Pakistan, which have contributed the least to emissions, are suffering the most. This is a question of climate justice.&rdquo; Responding to claims of insufficient preparation at home, Dr. Shezra Mansab said Pakistan has a strong pipeline of climate adaptation and resilience projects ready to be funded. &ldquo;The delay lies with international bureaucratic processes, not with Pakistan&rsquo;s homework. Many Global South countries are facing the same challenges. We are raising our voice collectively.&rdquo; She added that while the Paris Agreement has increased awareness and progress, the global community must now shift from policy commitments to practical implementation. On provincial coordination, she acknowledged improvements but noted more work is needed, citing recent flood impacts in several regions.&nbsp; She praised Punjab&rsquo;s climate initiatives under Chief Minister Maryam Nawaz, saying that other provinces are beginning to adopt similar practices. &ldquo;Our geography is extremely diverse&mdash;from glaciers to deserts&mdash;so solutions must be tailored at the provincial level,&rdquo; she explained.&nbsp; &ldquo;The federal government will continue to provide policy direction, guidance, and support.&rdquo; Dr. Shezra Mansab Ali Khan concluded that Pakistan&rsquo;s path forward must focus on responsible population planning, climate-smart development, stronger governance coordination, equitable access to global climate funds, and ensuring climate justice for vulnerable communities.

Minister of State for Climate Change Dr Shezra Mansab Ali Khan said Pakistan is facing a critical moment as climate vulnerability intensifies alongside rapid population growth, and urgent coordinated action is needed to secure the country’s future

Pakistan must tackle climate, population challenges together: Dr Shezra Mansab

GENEVA: This year is set to be among the very warmest ever recorded, capping more than a decade of unprecedented heat, the United Nations said Thursday. &quot;The alarming streak of exceptional temperatures continued in 2025, which is set to be either the second or third warmest year on record,&quot; the World Meteorological Organization said in an update on the state of the global climate released ahead of next week&#39;s COP30 UN climate summit in Brazil.

The United Nations’ World Meteorological Organization reports 2025 is on track to be the second or third warmest year ever recorded, marking over a decade of record-breaking global heat before COP30

2025 likely among three hottest years on record: UN

Gaitty Ara Anis

WASHINGTON DC: &nbsp;Pakistan faces a critical challenge in balancing its $1.2 billion International Monetary Fund (IMF) aid with the urgent need for climate resilience, as experts urge a shift from short-term bailouts to long-term investments in flood defenses, early warning systems, and community-level adaptation. The recent climatic changes faced by Pakistan, especially in the form of widespread flooding, have left it reeling from financial and social impacts. The IMF recently reached an agreement with Pakistan to provide $1 billion under its Extended Fund Facility (EFF) and $200 million under its Resilience and Sustainability Facility (RSF) this week, bringing total disbursements under the two arrangements to about $3.3 billion up till now. In its recently issued statement, the IMF highlighted the devastation caused by flash floods that impacted &quot;7 million people, causing over 1,000 deaths and severely damaging&quot; everything from housing to agricultural land, consequently bringing down the projected FY26 GDP to about 3&frac14; &ndash; 3&frac12; percent. Because the IMF deems Pakistan &quot;vulnerable&quot; to natural disasters, this has sparked a new debate on how to achieve &quot;climate resilience.&quot; Expenditure transparency&nbsp;Climate change and economic experts view no single fix to this situation but rather look for a multi-pronged approach, starting with the right allocation of funds released under the RSF program. Dr Abid Qaiyum Suleri, the executive director of the Pakistan-based think-tank, the Sustainable Development Policy Institute (SDPI), told Pakistan-TV Digital that to ensure expenditure transparency, &quot;Each rupee should be tied to clearly defined resilience outcomes&mdash;such as improved flood protection, drought-resistant agriculture, or community-level adaptation projects&mdash;and implemented through provincial and district mechanisms that involve local stakeholders.&quot; &lsquo;Ex-ante measures&rsquo;As a cash-strapped country, staying aligned with the conditions of the EFF loan program while managing the catastrophic climatic changes Pakistan is dealing with can be challenging. But is there room for making arrangements ahead of a climatic event? &nbsp;Zainab Majoka, a social protection economist based in Washington and working with the World Bank, commented that it is hard to fix anything once the catastrophe has already hit. &quot;A delay of even a few hours can lead to huge losses of life.&quot; Therefore, for countries like Pakistan, which are increasingly vulnerable to climate shocks, there is a dire need to invest in &quot;ex-ante measures,&quot; or measures implemented before the shock hits. &lsquo;Switching the composition&rsquo;&nbsp;One such area is Early Warning Systems (EWS). Majoka added that EWS are integrated data systems designed to provide timely and actionable warnings of impending hazards.&nbsp; &quot;In the recent past, these data systems have improved significantly in their accuracy and can provide robust information in advance,&quot; creating a time window where the government can start planning before the shock hits. The real question is whether Pakistan can allocate a major amount for such systems with proper checks and balances in place while availing the EFF, which comes with strings attached. &quot;Pakistan can expand climate adaptation and green infrastructure without breaching the EFF ceiling by switching the composition of spending rather than its size,&quot; summed up Dr Suleri. &lsquo;Phasing out untargeted subsidies&rsquo;He suggested phasing out untargeted energy subsidies and bailouts; ring-fencing the savings for flood defenses, drainage, resilient roads, and water systems; pruning low-priority Public Sector Development Programme (PSDP) schemes; and lowering the priority of &quot;discretionary&quot; projects as steps in the right direction. Majoka and Dr Suleri both emphasized the need to strengthen not just a sector but the &quot;whole community&quot; to face any untoward climatic incident. The experts believe a shift from blanket price support to targeted cash via the Benazir Income Support Program (BISP) is one of the best measures to keep all &quot;costs low.&quot;&nbsp; The money to ensure that communities are built to face recent flooding-like situations can be procured by unwinding costly tax exemptions, bringing high-end real estate and retail into the revenue net, enforcing provincial agriculture-income taxation, and introducing a modest carbon levy with part of the yield earmarked for adaptation. Livelihood diversificationMajoka also advocated for providing easy access to safety nets, such as income support programs already helping vulnerable and poor households, which can further build resilience against shocks. In Pakistan, &quot;Benazir Income Support Program can be leveraged for that.&quot;&nbsp; She seconded Dr Suleri on this point. Such programs can be complemented with other measures such as livelihood diversification, where a household has multiple sources of income.&nbsp; &quot;We know from evidence that such programs also help to cope with climate shocks.&quot; RSF as &lsquo;strategic anchor&rsquo;&nbsp;According to Dr Suleri, Pakistan can use the IMF&rsquo;s RSF as a strategic anchor for a long-term climate-resilient growth model rather than a short-term disaster fund. To do so, the government should align RSF-supported reforms with a broader green industrial strategy: one that links climate adaptation with competitiveness, investment, and jobs.&nbsp; This means embedding resilience criteria into all infrastructure planning, incentivizing green energy and water-efficient industries, and setting measurable national targets for emission reduction and resource efficiency. But a long-term planning approach should be taken into account for that timely access to resources and money is a key element guaranteeing preparedness against disasters. Contingency financing&nbsp;Contingency financing is another tool that many Latin American countries are already using to achieve this goal, Majoka said. &quot;Contingency financing can take many forms, but it essentially means that the government has access to liquid funds. So, instead of once the shock hits, the government starts to look for money, it already knows that certain triggers are set linked to the contingency financing.&quot; In countries such as Chile, Colombia, and Mexico, they have catastrophe bonds that provide liquidity as soon as the shock hits. This improves the timeliness of the response and reduces the overall cost of recovery and relief. Even with all the appropriate and necessary steps taken, the IMF views that &quot;maintaining tight and data-dependent monetary policy will go a long way to build resilience against climatic changes that are rapidly changing the geo-economic structure of Pakistan.&quot;

Economy

The IMF recently reached an agreement with Pakistan to provide $1 billion under its Extended Fund Facility (EFF) and $200 million under its Resilience and Sustainability Facility (RSF) this week.

Articles tagged with "Climate Change"