Pakistan Needs $50 Billion to Tackle Climate Change, Says Dr. Shamshad Akhtar

Former Finance Minister Dr. Shamshad Akhtar has called for urgent international financial support to address Pakistan’s growing climate change crisis, estimating that the country requires $50 billion to tackle the severe environmental challenges it faces.

Speaking at the third Pakistan Climate Conference, Dr. Shamshad Akhtar highlighted that Pakistan is ranked as the fifth most vulnerable country to the devastating effects of climate change. Despite the severity of the situation, she pointed out that Pakistan has only received a mere 1.8% of the necessary funding to address its climate challenges.

“The government must take proactive steps to secure financial assistance from international organizations to combat climate change,” Dr. Akhtar said. She also noted that climate-related disasters have already resulted in a 3% reduction in the nation’s GDP, underscoring the significant economic impact of environmental degradation.

To bolster climate financing efforts, Dr. Akhtar emphasized the importance of green sukuk bonds, which have been introduced as a tool to raise funds for environmental projects. Additionally, she suggested the development of banking products specifically designed for green financing as a promising strategy to generate more funding for sustainable development.

Dr. Akhtar also stressed the importance of a comprehensive green energy policy to ensure the long-term success of the China-Pakistan Economic Corridor (CPEC), which could play a pivotal role in the country’s transition to a more sustainable and resilient economy.