Finance Minister Push For Innovative Climate Financing: Sherry Rehman
Senator Sherry Rehman, chairing the meeting of the Senate Standing Committee on Climate Change addressed critical climate financing issues, environmental challenges, and the progress on EV policy in Pakistan. During a comprehensive briefing, conducted in collaboration with the Ministry of Finance,
Senator Sherry Rehman underscored the pressing need for structured financial solutions to bridge the estimated $340 billion funding gap necessary for sustainability. She emphasized that Pakistan’s financial capacity remains significantly lower than that of Bangladesh, a critical disparity that requires immediate intervention.
“Climate finance is not just about pledges; it’s about ensuring timely access to funds and building institutional capacity for climate resilience,” Senator Rehman stated. “Our existing financing structures are inadequate, and without robust financial solutions, Pakistan will continue to lag behind in climate adaptation and mitigation.”
The Finance Minister acknowledged the significant challenges in climate adaptation and financing, emphasizing the need for a structured approach that incorporates key enablers such as the National Adaptation Plan and National Climate Finance strategy. He noted, “Green technology is pivotal for sustainability,
but clear definitions and parameters are essential for effective monitoring and reporting. The World Bank’s Country Partnership Framework prioritizes climate financing, while discussions with the IMF under the Extended Fund Facility are ongoing, with around one billion dollars expected. However, bureaucratic hurdles continue to obstruct access to climate funds, highlighting the need for streamlined processes. To advance climate resilience,
we must optimize existing resources and collaborate closely with partners like UNDP.” It was mutually agreed by Senator Sherry Rehman and the Finance Minister that climate financing must be creatively programmed to ensure effective resource mobilization and project execution.
Addressing the Electric Vehicle (EV) Policy, Senator Sherry Rehman emphasized the importance of launching and incentivizing EV adoption to reduce carbon emissions and combat urban pollution. “We must ensure that the EV Policy is not just on paper but actively implemented with proper incentives.
This will not only reduce Punjab’s smog but also set the stage for a green energy transition across the country,” she stated.
The Finance minister supported this stance, reiterating that policy mapping in the budgeting process is essential to align EV initiatives with broader economic objectives. He further announced the establishment of an advisory board to oversee various policy matters. Stakeholders, including the Finance Minister agreed with Senator Sherry Rehman that addressing taxation anomalies is crucial for the successful implementation of the new EV policy.
Senator Rehman emphasized “Removing these barriers would incentivize both importers and manufacturers. As seen globally, such measures are essential to reduce pollution and facilitate the transition to an electric vehicle ecosystem. Given its environmental challenges, Pakistan stands to benefit from this shift more than any other country.”
