ISLAMABAD: Pakistan on Sunday called on the world to take “urgent action” to safeguard wetlands, emphasizing their significant role in environmental preservation, biodiversity, and combating impacts of climate change.
The statement by Romina Khurshid Alam, the Pakistan prime minister’s coordinator on climate change, came on the World Wetlands Day being observed under the theme “Wetlands and Water.” Alam called for strengthened global and national efforts to safeguard these vital ecosystems.
The United Nations (UN) has designated Feb. 2 as World Wetlands Day to commemorate the adoption of the Ramsar Convention on Wetlands in 1971. As part of Pakistan’s commitment to the Ramsar Convention, the country has designated 19 wetlands of international importance, including the famous Keenjhar Lake, Rann of Kutch, and the Haleji Lake, which support a wide variety of wildlife, especially for around 2 million migratory birds from countries in Central Asia, Siberia and northern parts of Europe.
The Pakistan PM’s aide stated that climate change has exacerbated the challenges faced by wetlands in Pakistan, with rising temperatures, changing rainfall patterns, and increasing sea levels causing wetlands to shrink disrupting the delicate balance of these ecosystems.
“As we observe World Wetland Day, it is essential that we commit taking action not just today but every day to safeguard the wetlands and the countless species that depend on them,” Alam said. “By collaborating, we can preserve these precious resources and build a sustainable future of environment.”
Wetlands are defined as both freshwater and coastal and marine ecosystems, and include all lakes and rivers, swamps, marshes, peatlands, estuaries, deltas, tidal flats, mangroves, coral reefs, and underground aquifers.
These areas are vital to human well-being and sustainable development but despite their critical role, wetlands are among the ecosystems with the highest rates of decline, loss and degradation, according to environmental experts.
Alam noted that although Pakistan contributes only 1 percent to global greenhouse gas emissions, it has been ranked among top ten climate-vulnerable nations.
“This stark disparity highlights the country’s heightened risk to the effects of climate change, such as extreme weather events, floods, droughts, and rising temperatures, which pose significant threats to its population, economy, and place additional pressure on its wetland resources,” she said, emphasizing that wetlands act as natural buffers against floods and function as carbon sinks, which helps mitigate the effects of global warming.
Pakistan last year recorded its “wettest April since 1961,” with 59.3 millimeters of rainfall while some areas of the country faced a heat wave in May and June. In 2022, unusually heavy rains triggered flash floods in many parts of the country, killing over 1,700 people, inflicting losses of around $30 billion, and affecting at least 30 million people.
Scientists have attributed Pakistan’s erratic weather patterns to climate change effects and called on countries around the world to take urgent steps to tackle the crisis.
Alam reaffirmed Pakistan’s commitment to protecting these vital ecosystems by strengthening environmental policies, promoting sustainable water management, and working closely with local communities to ensure that wetlands are preserved for future generations.
“Pakistan has shown resilience in the face of climate change, and our government is continuously taking steps to address environmental degradation,” she said. “Wetlands, especially in regions like the Indus Delta, play a crucial role in maintaining the ecological balance and supporting livelihoods.”
Pakistan demands ‘urgent action’ to protect world wetlands to mitigate climate crisis
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Pakistan demands ‘urgent action’ to protect world wetlands to mitigate climate crisis
- Wetlands are defined as both freshwater and coastal and marine ecosystems that are vital to human well-being and sustainable development
- These ecosystems act as natural buffers against floods and function as carbon sinks, which helps mitigate the effects of global warming
Islamabad dismisses claims about paying up to 8 percent interest on foreign loans as ‘misleading’
- Pakistan has long relied on external loans to help bridge persistent gaps in public finances and foreign exchange reserves
- Pakistan’s total external debt, liabilities stand at $138 billion at an overall average cost of around 4 percent, ministry says
KARACHI: Pakistan’s finance ministry on Sunday dismissed as “misleading” claims that the country is paying up to 8 percent interest on external loans, saying the overall average cost of external public debt is approximately 4 percent.
Pakistan has long relied on external loans to help bridge persistent gaps in public finances and foreign exchange reserves, driven largely by a narrow tax base, chronic trade deficits, rising debt-servicing costs and repeated balance-of-payments pressures.
Over the decades, successive governments have turned to multilateral and bilateral lenders, including the International Monetary Fund, the World Bank and the Asian Development Bank, to support budgetary needs and shore up foreign exchange reserves.
The finance ministry on Sunday issued a clarification in response to a “recent press commentary” regarding the country’s external debt position and associated interest payments, and said the figures required contextual explanation to ensure accurate understanding of Pakistan’s external debt profile.
“Pakistan’s total external debt and liabilities currently stand at $138 billion. This figure, however, encompasses a broad range of obligations, including public and publicly guaranteed debt, debt of Public Sector Enterprises (both guaranteed and non-guaranteed), bank borrowings, private-sector external debt, and intercompany liabilities to direct investors. It is therefore important to distinguish this aggregate figure from External Public (Government) Debt, which amounts to approximately $92 billion,” it said.
“Of the total External Public Debt, nearly 75 percent comprises concessional and long-term financing obtained from multilateral institutions (excluding the IMF) and bilateral development partners. Only about 7 percent of this debt consists of commercial loans, while another 7 percent relates to long-term Eurobonds. In light of this composition, the claim that Pakistan is paying interest on external loans ‘up to 8 percent’ is misleading.
The overall average cost of External Public Debt is approximately 4 percent, reflecting the predominantly concessional nature of the borrowing portfolio.”
With respect to interest payments, public external debt interest outflows increased from $1.99 billion in Fiscal Year (FY) 2022 to $3.59 billion in FY2025, representing an increase of 80.4 percent, not 84 percent as reported. In absolute terms, interest payments rose by $1.60 billion over this period, not $1.67 billion, it said.
According to the State Bank of Pakistan’s records, Pakistan’s total debt servicing payments to specific creditors during the period under reference were as follows: the IMF received $1.50 billion, of which $580 million constituted interest; Naya Pakistan Certificates payments totaled $1.56 billion, including $94 million in interest; the Asian Development Bank received $1.54 billion, including $615 million in interest; the World Bank received $1.25 billion, including $419 million in interest; and external commercial loans amounted to nearly $3 billion, of which $327 million represented interest payments.
“While interest payments have increased in absolute terms, this rise cannot be attributed solely to an expansion in the debt stock,” the ministry said. “Although the overall debt stock has increased slightly since FY2022, the additional inflows have primarily originated from concessional multilateral sources and the IMF’s Extended Fund Facility (EFF) under the ongoing IMF-supported program.”
Pakistan secured a $7 billion IMF bailout in Sept. 2024 as part of Prime Minister Shehbaz Sharif’s efforts to stabilize the South Asian economy that narrowly averted a default in 2023. The government has since been making efforts to boost trade and bring in foreign investment to consolidate recovery.
“It is also important to note that the increase in interest payments reflects prevailing global interest rate dynamics. In response to the inflation surge of 2021–22, the US Federal Reserve raised the federal funds rate from 0.75-1.00 percent in May 2022 to 5.25–5.50 percent by July 2023. Although rates have since moderated to around 3.75 percent, they remain significantly higher than 2022 levels,” the finance ministry said.
“The government remains committed to prudent debt management, transparency, and the continued strengthening of Pakistan’s macroeconomic stability,” it added.
