Pakistan determined to make business environment more conducive: FM Aurangzeb

Finance Minister (FM) Muhammad Aurangzeb has reiterated government’s determination to make the business environment more conducive for international investors, ARY News reported.

In his keynote speech via online platform at the UK-Pakistan Green Investment Forum today, he emphasized Pakistan’s commitment to addressing climate change and promoting green investment opportunities.

The event was organized by the British High Commission in Pakistan.

The Finance Minister highlighted Pakistan’s vulnerability to the adverse effects of climate change, despite its low contribution to global greenhouse gas emissions. He cited a recent World Bank study, estimating potential annual GDP losses of up to one percent due to climate-related risks.

Acknowledging the significant funding gap in adaptation, resilience and mitigation projects, Muhammad Aurangzeb stressed the importance of bridging this divide. He noted that the changing weather patterns in Pakistan are impacting agricultural yields and posing threats such as flooding, storms and heat-waves.

Expressing gratitude to the British High Commission for organizing the forum, the Minister acknowledged the need for a better portfolio of green investment projects. He emphasized Pakistan’s reliance on the private sector for support and highlighted government’s efforts to enhance investor confidence in bankable green opportunities.

The Minister also outlined Pakistan’s plans to utilising innovative financing instruments to raise international climate finance. He said the government is working on issuing domestic green sukuk bonds by December this year to finance sustainable development projects.

Muhammad Aurangzeb also highlighted the successful completion of the 9-month-long Standby Arrangement of IMF. He expressed the intent to engage with the IMF for a medium-term fund-supported program which demonstrates Pakistan’s resolve to pursue sustained economic growth and stabilization.