Recognising the global threat posed by climate change, this first-of-its-kind programme will be delivered in partnership with the International Finance Corporation (IFC)…reports Asian Lite News
Local Pakistani businesses are set to benefit from £108m in UK funding that will support the development of climate technologies and expertise needed to tackle climate change.
Recognising the global threat posed by climate change, this first-of-its-kind programme will be delivered in partnership with the International Finance Corporation (IFC). As the largest single country blended finance facility, it will invest in local businesses to help them develop the technologies and meet the significant investments needed to adapt to the threats Pakistan faces from climate change.
The announcement marks the conclusion of a two-day visit to Pakistan by Hamish Falconer, Minister for the Middle East, who announced the funding at a launch event in Islamabad.
Announcing the new funding in Islamabad, Minister for the Middle East, Hamish Falconer said, “The UK and Pakistan are committed to tackling tomorrow’s threats today. That’s why we’re investing in the expertise needed and supporting local businesses, alongside the Government of Pakistan, to get ahead of the challenges that climate change poses to the Pakistani people and the world. From my own time working as a diplomat in Pakistan to now returning as a Minister, it’s clear that the UK and Pakistan’s partnership continues to go from strength to strength and is essential in tackling shared global challenges.”
The programme will leverage the £108m the UK puts in to mobilise 5-6 times that amount of investment from the private sector and will support the creation of over 100,000 Pakistani jobs.
This initiative follows the launch of the British High Commission Pakistan’s Cost of Inaction Report, which highlights the estimated cost of inaction on climate change for Pakistan is over one trillion dollars over the next 25 years.
The programme is a central part of the UK’s Climate Investment Fund Pakistan programme (CIFPAK), which is providing a range of initiatives aimed at encouraging private sector investment and providing the finance that local businesses need to get ahead of this global threat. The UK and IFC will then reinvest any profits from projects back into the facility, financing even more climate solutions.
The UK is committed to working with Pakistan to tackle the threat climate change poses to its population. Whilst in Pakistan, the Minister also visited Chakwal Textile Mill to see how UK funding has supported the installation of solar panels and the effect this has had, resulting in both reduced emissions, and energy costs.
IFC Country Manager for Pakistan & Afghanistan, Zeeshan Sheikh, said, “This facility reflects IFC’s commitment to supporting Pakistan’s climate resilience and adaptation efforts. We are pleased to be partnering with the UK government on an innovative facility that will help crowd-in much needed private investment. As a leading global investor in climate finance, IFC aims to leverage its experience and catalyze private sector financing for climate-smart investments in Pakistan and build a sustainable climate finance ecosystem.”
With a focus on strengthening the UK’s bilateral relationship with Pakistan, the Minister met with Pakistan’s Interior Minister, Mohsin Naqvi, and Foreign Minister, Ishaq Dar, to discuss shared values and address common challenges, including ensuring regional stability and de-escalation in the Middle East.
The Minister also 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.
The UK has a close and longstanding relationship with Pakistan, underpinned by strong links between our people and is committed to working together to promote our shared values, including economic prosperity and democratic processes, as well as climate change and security threats.
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