ISLAMABAD: The government said on Friday that international financial architecture had to change to find the resources and funds that developing countries needed for the challenges of the 21st century.

“World Bank and other financial institutions need to urgently consider the needs of developing countries in their policies and practices,” said Federal Minister for Climate Change Senator Sherry Rehman speaking at the national dissemination event of the World Bank’s Country Climate and Development Report on Pakistan.

She highlighted that the World Bank had a critical role to play in tackling the pressing challenges of climate change in Pakistan.

“This report has identified that Pakistan requires a staggering $348 billion to bolster its climate resilience and achieve its development goals by 2030. It highlights the critical importance of investing in Pakistan’s economy and infrastructure to ensure the country is equipped to meet the challenges of climate change,” said the minister.

Countries like Pakistan were grappling with economic crisis and struggling to find sources of funding. Although there was money available in the system, it was not readily accessible to countries like Pakistan, she said adding: “There is a pressing need for the global financial order to change to address this issue. To effectively manage climate shocks and risks, we require greater predictability and stability in financing, which necessitates a shift towards a new stage of the global financial system.”

The minister continued, “The World Bank’s core mission of eradicating extreme poverty and building sustainable prosperity is currently challenged by climate stress in Pakistan and internationally.

The world is at a tipping point for climate change, with extreme weather events causing stress everywhere, and it is time to ask whether the international financial system created after World War II is equipped to address these challenges.

The threats of 21st century like the pandemics and climate change are all borderless and require new instruments for financing.”

The minister said there were no silver bullets to combat climate change. It was a long onset event that brought immediacy and accelerated impact to countries on the frontline.

“Countries are planning for exigencies for 2050, but we must understand that climate impacts are here and now, and they will likely hit vulnerable regions like Pakistan much earlier.

The climate is changing faster than predicted, and global emissions are still higher than expected. There is a need for collective action from entire regions and continents to change the way we consume, manufacture, and treat water. One community, province, or country cannot address the challenge alone.”

She argued that development and climate must be studied and treated together as a policy instrument. Paper commitments in silos would have little to no impact on actual vulnerability on the ground.

“It is crucial to approach development holistically and integrate climate exigencies into panning for sustainable recovery options,” she said.

Published in Dawn, March 18th, 2023