Lenders seek transparency as Pakistan pitches for environment funding

Amid struggling project implementation and calls for more transparency by multilateral and bilateral lenders, the caretaker government on Tuesday made a pitch for additional international financial support, particularly those relating to ‘debt for nature and debt for social development swaps’ to help Pakistan meet climate finance targets. The appeal for additional financial support was made by Caretaker Finance Minister Dr Shamshad Akhtar at back-to-back engagements with lenders and development partners ahead of upcoming UN Climate Change Conference (COP-28) convened by UN Framework Convention on Climate Change (UNFCCC) from Nov 30 to Dec 12 in Dubai. The meetings were attended by representatives from all the key multilateral and bilateral lenders. The minister has already shelved budget plans to launch conventional Eurobond citing adverse global financial market conditions and announced to make efforts for access to climate financing, including through relevant bonds like Environmental, Social and Governance (ESG), once credit rating improves following disbursement from the International Monetary Fund (IMF) of $700 million second tranche of the $3bn programme, also to be dovetailed by other multilaterals.