World-leading climate initiatives to be developed through £108 M UK programme in Pakistan
ISLAMABAD: Hamish Falconer, the UK Minister for the Middle East, Afghanistan, and Pakistan, unveiled a new £108 million climate finance initiative. This funding is aimed at fostering the development of innovative climate technologies and attracting private sector investment, benefiting both the environment and Pakistani businesses.
In light of the global climate crisis, this pioneering programme will be implemented in collaboration with the International Finance Corporation (IFC). As the largest blended finance initiative in any single country, it will focus on supporting local businesses in building the technologies and securing the substantial investments required to address the climate change challenges facing Pakistan.
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Any profits generated from these projects will be reinvested into the programme, helping finance even more climate solutions. The UK’s £108 million investment will be used to mobilize five to six times that amount from private sector contributions.
The programme’s launch event in Islamabad was attended by several key figures, including Muhammad Aurangzeb, the Federal Minister for Finance and Revenue, Ali Pervaiz Malik, the Minister of State for Finance, Revenue, and Power, and Musadik Masood Malik, the Federal Minister for Water Resources.
Minister Hamish Falconer, announcing the funding in Islamabad, stated:
“The UK and Pakistan have a long-standing partnership in addressing future threats today. This is why we are investing in the expertise required and supporting local businesses, in collaboration with the Government of Pakistan, to tackle the challenges climate change presents to both the Pakistani people and the world.”Climate Change Ministry Signs Pact to Mitigate Nitric Acid Emissions
“As someone who has served as a diplomat in Pakistan and now returns as a Minister, it is clear that the UK-Pakistan relationship continues to grow stronger and is vital for addressing shared global issues.”
Zeeshan Sheikh, IFC’s Country Manager for Pakistan & Afghanistan, remarked:
“This initiative underscores IFC’s commitment to supporting Pakistan’s climate resilience and adaptation strategies. We are excited to partner with the UK on this innovative project that will help attract much-needed private investment.”
“As a leading global investor in climate finance, IFC seeks to leverage its expertise and stimulate private sector financing for climate-friendly investments in Pakistan, creating a sustainable climate finance ecosystem.”
This announcement comes shortly after the release of the British High Commission Pakistan’s Cost of Inaction Report, which estimates that Pakistan could lose over one trillion dollars due to inaction on climate change over the next 25 years.
The announcement also marks the end of Hamish Falconer’s two-day visit to Pakistan.
The Minister also met with Pakistan’s Foreign Minister and Deputy Prime Minister, Ishaq Dar, and Interior Minister, Mohsin Naqvi, to discuss shared values and address common challenges, including and regional and global security. He met with Pakistan’s National Assembly Speaker, Sardar Ayaz Sadiq, and the Federal Minister for Law and Justice, Azam Tarar, to promote the importance of democracy and fundamental freedoms.
