Saudi Arabia says in talks with World Bank, others to be ‘more creative’ in supporting Pakistan

Saudi finance minister, Mohammed Al-Jadaan, is pictured while addressing a session at the World Economic Forum Annual Meeting (WEF) 2023 in Davos, Switzerland, on January 18, 2022. (Photo courtesy: WEF)
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Updated 19 January 2023
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Saudi Arabia says in talks with World Bank, others to be ‘more creative’ in supporting Pakistan

  • Finance minister’s statement coincides with remarks at Davos that kingdom would change the way it provides assistance to allies
  • Kingdom is shifting from previously giving direct grants and deposits unconditionally and encouraging countries to enact reforms

ISLAMABAD: Saudi Arabia is in talks with the World Bank and other financial institutions to come up with “more creative” ways to provide financial support to Pakistan, Saudi Minister of Finance Mohammed Al-Jadaan said this week.

The finance minister’s statement coincides with his remarks at Davos on Wednesday where he said the kingdom would change the way it provides assistance to allies, shifting from previously giving direct grants and deposits unconditionally and encouraging countries it supports to enact economic reforms.

Pakistan is currently facing a severe foreign exchange crisis, with State Bank reserves falling to a critical level of $4.3 billion.

As the specter of default looms large, Prime Minister Shehbaz Sharif’s administration has been desperately seeking external financing, particularly a loan tranche from the International Monetary Fund (IMF) which has been pending since September last year. Pakistan is also looking at “friendly” nations like Saudi Arabia and the UAE to bail it out.

In an interview to Bloomberg this week, Al-Jadaan said Saudi Arabia was working with multilateral institutions to provide support to Pakistan, Turkiye and Egypt as part of the kingdom’s largesse to nations it deems “vulnerable.”

“We are investing heavily in these countries and will continue to look for opportunities to invest,” he said. “It’s very important to bring stability.”

The kingdom was also discussing with the World Bank and other institutions how it could be “more creative” in providing support to Pakistan.

Al-Jadaan said Saudi Arabia was looking to invest $10 billion in Pakistan and had already extended the term of a $3 billion deposit to boost its foreign-currency reserves late last year. Saudi Arabia was now exploring the possibility of increasing the amount, he added.

 “We are providing even oil and derivatives to support their energy needs,” Al Jadaan said. “So there is a lot of effort.”

During a panel discussion at the World Economic Forum in Davos on Wednesday, Al-Jadaan said the kingdom wanted to move away from its previous policy of giving nations direct grants and deposits “without strings attached.”

“We are working with multilateral institutions to actually say we need to see reforms,” Al-Jadaan said. “We are taxing our people, we are expecting also others to do the same, to do their efforts. We want to help but we want you also to do your part.”

Saudi Arabia and other Gulf Arab states like the United Arab Emirates and Qatar have increasingly moved toward investing rather than extending direct financial aid.


Imran Khan’s party announces ‘long march’ to Islamabad on Nov. 24

Updated 13 November 2024
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Imran Khan’s party announces ‘long march’ to Islamabad on Nov. 24

  • PTI is protesting alleged rigging of elections, calling for release of political prisoners, independence of judiciary
  • Pakistan’s government denies being unfair in Khan’s treatment, election commission denies elections were rigged

ISLAMABAD: Prime Minister Imran Khan has called a ‘long march’ to the capital, Islamabad, on Nov. 24 over alleged rigging in Feb. 8 general elections and to call for the release of political prisoners and the independence of the judiciary, the jailed leader’s Pakistan Tehreek-e-Insaf party said on Wednesday. 

Khan has been in jail since August 2023 and has faced dozens of cases since he was removed as prime minister in 2022 after which he launched a protest movement against a coalition of his rivals led by current Prime Minister Shehbaz Sharif and backed by the all-powerful military, which denies interfering in politics. 

Khan says cases against him, which disqualified him from contesting the February elections, are politically motivated.

“Pakistan Tehreek-e-Insaf announcing long march on 24 November, toward Islamabad with 3 basic demands,” the party said in a statement to reporters. 

The PTI’s first demand is a rollback of recent constitutional amendments like the 26th amendment that the PTI says is an attempt to curtail the independence of the senior judiciary. 

“Release of party leadership and workers,” the PTI said. “⁠Return of stolen mandate, 2024 election by far, the most controversial and farce election.”

Speaking in Lahore, Khan’s sister Aleema Khan also announced the protest call. 

“Today you will have to decide if we want to live in martial law or in freedom,” Aleema said. “And on Nov. 24, Imran Khan has today [Wednesday] asked a call for Islamabad.”

Pakistan’s government denies being unfair in Khan’s treatment and its election commission denies the elections were rigged. The government also says the amendments related to the judiciary are meant to smooth out its functioning and tackle a backlog of cases.


Pakistan, fighting for climate funds, urges COP29 to become ‘Finance COP’

Updated 52 min 34 sec ago
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Pakistan, fighting for climate funds, urges COP29 to become ‘Finance COP’

  • Nearly 200 nations are meeting in Baku to discuss climate compensation for developing countries
  • Pakistani prime minister urges fulfillment of financial pledges made during COP27 and COP28

ISLAMABAD: Pakistani Prime Minister Shehbaz Sharif on Wednesday expressed hope the UN’s ongoing COP29 climate summit would transform into a “Finance COP” by restoring confidence in the pledging process and increasing climate finance for vulnerable, developing countries.

The main task for nearly 200 countries at the COP29 summit from Nov. 11-22 is to broker a deal that ensures up to trillions of dollars in financing for climate projects worldwide. 

Pakistan is ranked the 5th most vulnerable country to climate change, according to the Global Climate Risk Index. In 2022, devastating floods killed over 1,700 people and affected over 33 million, with economic losses exceeding $30 billion. International donors pledged over $9 billion last January to aid Pakistan’s flood recovery but officials say little of the promised funds have been received so far.

Speaking on the sidelines of the World Leaders’ Climate Action Summit on Tuesday, Sharif said developing countries would need an estimated $6.8 trillion by 2030 to implement less than half of their current nationally determined contributions (NDCs), or national action plans for reducing emissions and adapting to climate impacts defined by the Paris Agreement.

Most of the world’s climate-friendly spending so far has been skewed toward major economies such as China and the United States. Africa’s 54 countries received just 2 percent of global renewable energy investments over the last two decades.

“We believe that under Azerbaijan’s able leadership, COP29 can transform into a Finance COP by restoring confidence in the pledging process and scaling up climate finance,” Sharif said in his address to the World Leaders’ Climate Action Summit on Wednesday. 

“I strongly feel that climate finance must be grant-based and not add to the debt burden of vulnerable developing countries.”

He said COP29 should make it clear that financial pledges committed during COP27 and COP28 must be fulfilled, as many had yet to materialize.

As minimal emitters, countries like Pakistan should not have to bear the brunt of emissions caused by others, Sharif added, especially without the necessary tools to finance climate resilience.

“Without climate justice, there can be no real resilience and I don’t want other countries to face the plight Pakistan faced back in 2022,” he added, referring to floods. 

Wealthy countries pledged in 2009 to contribute $100 billion a year to help developing nations cope with the costs of a transition to clean energy and adapting to the conditions of a warming world.

Those payments began in 2020 but were only fully met in 2022. The $100 billion pledge expires this year.

Countries are negotiating a higher target for payments starting next year, but some have been reluctant to confirm its size until it is clear which countries will contribute. Instead, they are circling around the idea of a multi-layered target, with a core amount from wealthy countries’ government coffers, and a larger sum that includes financing from other sources such as multilateral lending institutions or private investors.

In the past, public money made up the bulk of contributions to the $100 billion goal.

Donald Trump’s victory in the US election has overshadowed the COP29 talks, because of expectations he will halt US climate finance contributions.

That would leave a hole in any new global target that other donors would struggle to fill. Some climate negotiators also expect the overall target agreed at COP29 to be smaller, given the expected lack of contributions from the world’s biggest economy.

The US provided nearly $10 billion in international climate finance last year, less than the European Union’s $31 billion contribution.

So far, only a few dozen rich countries have been obliged to pay UN climate finance and they want fast-developing nations, such as China and Gulf oil nations to start paying as well.

Beijing opposes this, saying that as a developing country it does not have the same responsibility as long-industrialized nations like Britain and the United States.

While China is already investing hundreds of billions of dollars in electric vehicles and renewable energy abroad, it does so on its own terms. 

Any COP29 deal would need consensus approval.

With inputs from Reuters


COP29: Pakistani PM to pitch new fund in address at Climate Action Summit today

Updated 13 November 2024
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COP29: Pakistani PM to pitch new fund in address at Climate Action Summit today

  • Nearly 200 nations have gathered in Baku, Azerbaijan, for COP29 climate talks this week
  • Main focus of talks is wealthier nations compensating poor countries for climate change damages 

ISLAMABAD: Prime Minister Shehbaz Sharif will address the World Leaders’ Climate Action Summit at the COP29 conference in Baku today, Wednesday, where he is expected to discuss the risks posed to Pakistan by climate change and pitch a new fund to help developing countries pay for damages. 

Nearly 200 nations have gathered in Baku, Azerbaijan, for UN climate talks this week. The main focus of the talks is climate finance, which involves wealthier nations compensating poor countries for damages from climate change’s weather extremes, helping them pay to transition their economies away from fossil fuels and helping them with adaptation.

Speaking on the sidelines of the World Leaders’ Climate Action Summit on Tuesday, Sharif said developing countries would need an estimated $6.8 trillion by 2030 to implement less than half of their current nationally determined contributions (NDCs), or national action plans for reducing emissions and adapting to climate impacts defined by the Paris Agreement.

“In his speech [Wednesday], the Prime Minister will shed light on the threats posed to Pakistan by climate change and highlight the country’s efforts to tackle environmental risks.,” Radio Pakistan reported. 

“He will also speak about the responsibilities of developed countries and the establishment of a new fund in this regard.”

Sharif will also hold a meeting with the president of Azerbaijan, Ilham Aliyev, today and discuss bilateral cooperation, particularly in energy and regional connectivity.


Pakistan announces $50 million assistance for climate startups

Updated 13 November 2024
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Pakistan announces $50 million assistance for climate startups

  • Project seeks to attract private investment in climate-tech ventures
  • Initiative is backed by $25 million commitment from Green Climate Fund

ISLAMABAD: The Pakistan government has launched Climaventures, an initiative led by the National Rural Support Programme (NRSP) under which it will provide $50 million in assistance to climate-tech startups, Radio Pakistan reported on Wednesday. 

Pakistan is ranked the 5th most vulnerable country to climate change, according to the Global Climate Risk Index. In 2022, devastating floods killed over 1,700 people and affected over 33 million, with economic losses exceeding $30 billion.

“Under this project, an investment of fifty million dollars will be made … aimed at providing technical guidance, grants and equity to climate startups," said Radio Pakistan, reporting on the Climaventures initiative. 

“This project will increase private sector investment to deal with climate related challenges in Pakistan.”

In a video posted on X last week by NRSP, Georges Sander, a climate investment specialist, said Climaventures was exciting as it supported “local entrepreneurs […] develop local solutions for local climate problems”.

The $50 million project is designed to attract private investment in climate ventures, NRSP said.

With a core $25m funding commitment from the Green Climate Fund (GCF), Climaventures says it aims to address Pakistan’s funding gaps for sustainable solutions by offering technical guidance, grants and equity for climate-focused startups.

It is the first initiative of its kind in Pakistan and brings together key stakeholders, including government officials, international organizations like the World Bank and ADB, and climate entrepreneurs.


At UN climate talks, nations like Pakistan get chance to bear witness to climate change

Updated 13 November 2024
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At UN climate talks, nations like Pakistan get chance to bear witness to climate change

  • World’s biggest polluters and strongest economies, China and US, didn’t send their No. 1s, nor did India and Indonesia
  • Main focus of this year’s talks is climate finance or wealthier nations compensating poor countries for damages from climate change effects 

BAKU, Azerbaijan: When more than two dozen world leaders deliver remarks at the United Nations’ annual climate conference on Wednesday, many are likely to detail their nations’ firsthand experience with the catastrophic weather that has come with climate change.
That could include Pakistan Prime Minister Shehbaz Sharif, whose nation has seen deadly flooding this year from monsoon rains that scientists say have become heavier with climate change. Just two years ago, more than 1,700 people died in widespread flooding. Pakistan has also suffered from dangerous heat, with thousands of people hospitalized with heatstroke this spring as temperatures soared to 47 degrees Celsius (117 Fahrenheit).
Also on the list of speakers Wednesday is Bahamas Prime Minister Philip Edward Davis. Like many other countries in the Global South, the Bahamas has piled up debt from warming-connected weather disasters it did little to cause, including Hurricanes Dorian in 2019 and Matthew in 2016. Leaders have been seeking help and money from the Global North and oil companies.
Greece’s prime minister Kyriakos Mitsotakis is also on the list. Along with the rest of southern Europe, his nation this summer was hammered by successive heat waves after three years of below-average rainfall. In Greece, the misery included water shortages, dried-up lakes and the death of wild horses.
Leaders from Italy, Tuvalu, Russia, Morocco, Congo, and the secretary of state of the Holy See — the government of the Catholic Church — are among others scheduled to speak.
Plenty of big names and powerful countries are noticeably absent from COP29 this year. That includes the 13 largest carbon dioxide-polluting countries — a group responsible for more than than 70 percent of the heat-trapping gases emitted last year — were missing. The world’s biggest polluters and strongest economies — China and the United States — didn’t send their No. 1s. Neither did India and Indonesia.
But UK Prime Minister Keir Starmer was there, and he announced an 81 percent emissions reduction target on 1990 levels by 2035, in line with the Paris Agreement goal to limit warming to 1.5 degrees Celsius (2.7 degrees Fahrenheit) above pre-industrial times. That’s up from the 78 percent the UK had already pledged.
The main focus of this year’s talks is climate finance — wealthier nations compensating poor countries for damages from climate change’s weather extremes, helping them pay to transition their economies away from fossil fuels and helping them with adaptation.
Wednesday’s agenda also includes an update on the Fossil Fuel Non-Proliferation Treaty, an idea modeled on predecessor treaty movements that sought to build international support for controls on nuclear weapons, plastic pollution and chemical weapons. Supporters say the treaty could help stop the expansion of climate-causing fossil fuel production, create a plan to fairly phase out oil, gas and coal and accelerate the transition to renewable energy.
The idea has been endorsed by countries and groups including Fiji, Colombia, Vanuatu and the Solomon Islands, Indigenous nations in Peru, the World Health Organization and the European Parliament.