ISLAMABAD: Pakis­tan has a significant opportunity to convert its debt into climate investments through a new “Debt Swap Hub” launching in 2026, provided the country prepares by building institutional capacity and identifying high-impact projects, United Nations Department of Economic Affairs (DESA) senior official said on Saturday.

The United Nations and its partners will roll out the dedicated hub for climate investments, creating a pathway for debt-distressed nations to foster sustainable development.

“An early engagement by Pakistan will allow the co­­u­ntry to be among the first to get access to this mechanism for converting debt into investment in climate resilience, education or healthcare,” UN Assistant Secretary-Gen­eral for Economic Development Navid Hanif told Dawn.

Mr Hanif, who just completed a visit to Pakistan, said the recent Fourth International Conference on Financing for Develo­pment in Seville, Spain, opened a window for the country to mobilise new public and private capital if it takes a proactive and coordinated approach.

Urges early engagement, advises country to enhance capacity and prepare projects to benefit first

UN Member States adopted the “Seville Commitment” at the conference, a global roadmap for mobilising funds for sustainable development.

The conference also launched 130 high impact initiatives through the Sevilla Platform for Action. “From joining multilateral borrower platforms to pitching investment-ready projects, from preparing for climate debt swap to organising donors around national priorities – the tools are on the table,” Mr Hanif said.

As a country dealing with both debt stress and climate vulnerability, Pakis­tan stands to benefit from a new “Seville Debtors’ Forum,” a multilateral platform for borrower countries to share expertise on debt management.

“The participation will give Pakistan a collective voi­ce in discussions on debt sustainability, financing terms, and conditionalities — matters that directly affect its fiscal outlook and development options,” he maintained.

He suggested Pakistan establish a country-led platform to convene development partners aro­und national priorities like energy transition, digital transfor­ma­tion or human capital development.

Climate change poses a major threat to Pakistan’s economic progress, as evidenced by the devastating floods of 2022. He urged a comprehensive strategy centred on resilience, adaptation and disaster risk reduction.

He recommended that Pakistan upgrade infrastructure to withstand extreme weather, reinforcing dams, levees, and drainage systems while climate-proofing roads, bridges and housing.

“Every dollar spent on resilient infrastructure can greatly reduce future economic losses,” he said, adding that rebuilding infrastructure to higher standards after disasters is essential.

To protect the country’s vital agriculture sector, Mr Hanif said investing in climate-smart practices is critical.

This includes developing flood-resistant crop varieties, improving farm drainage, and expanding crop insurance.

Stressing the need for global support under the principle of climate justice, the UN official said Pakistan must actively pursue funds from mechanisms like the Green Climate Fund, adaptation funds and the newly agreed loss-and-damage fund.

Published in Dawn, August 10th, 2025