Mohsin Siddiqui (Chief Reporter)
Pakistan actively seeks global support at the COP28 in Dubai, the International Monetary Fund (IMF) has advised the government to make the budget for FY2024-25 a pivotal point for climate adaptation planning and investment portfolios.
The IMF emphasized the need for transparency in climate-related actions with budgetary implications to facilitate policy-making and attract climate financing. The technical advice aims to align Pakistan’s future with a sustainable vision, as presented by the Ministry of Climate Change and Environmental Coordination.
Caretaker Prime Minister Anwaarul Haq Kakar is leading a high-level delegation at the COP28, scheduled to commence on November 30. The Ministry of Planning and Development affirmed that Pakistan is poised to advocate for its climate agenda during the conference.
In preparations for COP28, caretaker Finance Minister Dr. Shamshad Akhtar engaged in extensive discussions with multilateral and bilateral lenders, seeking additional international financial support. The focus was on ‘debt for nature and debt for social development swaps’ to assist Pakistan in meeting its climate finance targets.
The IMF advised the ministries of finance and planning to enhance transparency by including summary information on key aspects of the Public Sector Development Programme (PSDP) and the broader public investment program in budget documentation. Insufficient information on the budgetary implications of climate-related actions prompted this recommendation.
Furthermore, the IMF urged the Planning Commission and Finance Division to collaborate on a proposal for approval by the Executive Committee of the National Economic Council (Ecnec) by mid-2023. This proposal should be included in the 2024-25 budget documentation, advancing the work on green budgeting and providing information on climate-related costs.
The Finance Division was also instructed to publish climate-related spending for FY2023-24 following a budget tracking exercise. The Ministry of Finance is encouraged to extend tracking measures in budget call circulars for FY24-25, gradually encompassing revenue measures and extending the green tracking system to all provinces with the support of the controller general of accounts.
