Pakistan’s innovative finance for climate resilience needs to be co-designed, pre-arranged: Experts
SLAMABAD ( WEB NEWS )
International experts have suggested that Pakistan’s future of innovative finance to address its depleting climate resilience must be financed through co-designed and pre-arranged financing supplemented by risk insurance and management through stakeholder collaboration.
The suggestion was made at the concluding plenary, titled: Financing Sustainable Development in the Emerging World Dis/Order organized on the occasion of 28th Sustainable Development Conference and hosted by Sustainable Development Policy Institute (SDPI) here on Friday.
Dr. Abid Qaiyum Suleri, SDPI Executive Director, said the conference has blended multiple themes from regional connectivity to global tariffs, living wage to climate resilience, disaster risk reduction to subregional cooperation that convened regional and international experts from around 23 countries, including South Asian countries and beyond.
Samuel Rizk, UNDP Resident Representative, said the world is witnessing transformative phase where financing has become more appropriate and critical for ensuring sustainable development. He noted that the government is the biggest source of financing for sustainable development chipped in by multilateral development entities and private sector together.
Dr. Bolormaa Amgabazar, the World Bank Country Director, said that Pakistan’s climate and disaster vulnerability is flagrantly high along with rising air and water pollution. However, she added, its population growth is the highest among many nations of the world that can incur severe repercussions for the country in the future amid rising population and thinning natural resources.
Mahir Binici, Country Representative, International Monetary Fund (IMF), said that Pakistan’s newly approved $1.4 billion arrangement under the Resilience and Sustainability Facility (RSF) will play a vital role in strengthening the country’s economic resilience and capacity to withstand environmental shocks. “The initiative is aimed at integrating climate considerations into Pakistan’s public financial management and fostering long-term sustainable growth,” he said adding that the RSF is operating in parallel with Pakistan’s ongoing Extended Fund Facility (EFF), a three-year structural reform program running until 2027. “Both programs are Pakistan’s own reform efforts, supported by the Fund,” Binici said.
Jason Avanceña, Chief Executive Officer & Managing Director, Nestlé Pakistan said the country needs to invest in technologies ensuring clean energy access, efficiency and resource management in production lines. Pakistan, he said needs enhanced collaboration between private sector for shared learning and growth with a core emphasis on reforms in the existing systems and frameworks.
Earlier, speaking at a policy dialogue, titled: Digital Currencies in Pakistan: Making Sense of Policy Positions, Consequences and Future
Trajectory, Zafar Masud, Chief Executive Officer of the Bank of Punjab, said Pakistan needs to move quickly but carefully towards digital currencies and virtual assets to avoid falling behind the global financial race, warning that regulatory ambiguity, cyber risks, and energy shortages could slow progress. There are a lot of misunderstandings regarding digital currency, but we cannot ignore its future and the coming revolution because of it.” “Pakistan is at a digital crossroad,” Masud said, noting that the country’s central bank is also working on a Central Bank Digital Currency (CBDC). “There are new ideas and concepts coming up, and policy makers need to do more.” Masud warned that Pakistan could lose a massive economic opportunity if it fails to regulate digital assets. “There is a $20 to $25 billion window we have to open in Pakistan — either regulate it or we lose and face the capital flight,” he said.
Dr Sajid Amin, SDPI Research Fellow, said Pakistan must streamline its approach to digital currencies and virtual assets, though “challenges are also there.” He noted that while the State Bank of Pakistan (SBP) has prohibited crypto trading, it is simultaneously exploring the launch of a Central Bank Digital Currency (CBDC).
Imran Ashraf, Head of Digital Banking at the Bank of Punjab, said that “internationally there is more work on it underway,” with 70 countries running pilot projects. “E-CNY (China) is already there having a 14 trillion yuan of stable coins,” he said, adding that tokenization of real assets and blockchain-based trade systems are being developed worldwide.
Faisal Mazhar, Deputy Director of Payments at the SBP, declined to say whether the bank considers cryptocurrency legal but confirmed that “we are working on the digital currency since 2022.” “The current currency and payment mechanism is very fast. We are engaged with the World Bank to help us in capacity building on this subject. The IMF is also supporting through a technical assistance programme,” Mazhar said.
Ali Farid Khawaja, Chairman of K-Trade, said global political shifts could affect digital assets. “Right now, when Trump is taking too much interest in crypto, and we relied on him, then what will be next if he leaves?” he asked. Khawaja warned that stablecoins could also threaten the US dollar, adding that “crypto is a diplomacy tool [by Pakistan].”
Ayad Butt, CEO of Zodia Markets, said Pakistan is “ready for crypto and digital assets adaptation,” but warned that “capital control and money laundering” remain major challenges. He stressed the need for regulation to “encourage inbound crypto inflow,” license exchanges, and ensure oversight. “Ringfencing of the activity and oversight is more important,” Butt said.