Conditional financing…Sheharyar Ahmed


Pakistan has always been an agrarian economy. This gives it a comparative advantage in the sector. The abundance of natural resources in the country and the specialized labour force provide the country an edge over the economies of its neighbouring countries.

Data also supports the fact that a huge chunk of Pakistans labour force (37 per cent approximately) is absorbed by the agriculture sector. It contributes roughly 22 per cent to the country GDP. This sector not only caters to domestic food demand but also contributes significantly to our exports.

It is also true that this sector is highly vulnerable to climatic change. And the nation is yet to witness a serious action plan to combat this global challenge. Be it unprecedented rains, water scarcity or adaptation issues, the country is often found short of mitigation and adaptation plans. And while we raise alarm bells when we witness the devastation caused by climate hazards, we rarely take preventive measures.

Pakistan witnessed multiple catastrophic effects caused by climate change in the last two decades. The floods of 2022 caused large-scale losses: infrastructure damage, loss of crops and livestock, deaths of 1,700 people, and displacement of thousands of people, particularly the rural population. The economic loss is estimated to be $16 billion approximately, which jolted our already crippling economy.

What this incident needed was a prompt response both domestically as well as from the international community, but what our policymakers did was to focus on the latter, ignoring the former. The much-celebrated pledges of approximately $10 billion made by the international community and several financial institutions at the Geneva conference in January are a result of the efforts made by the government, but at the same time they also reflect the priorities of the government.

The pledges are yet to materialize, but the government portrayed it as a success of its foreign policy and a solution to our current economic crisis. Though these pledges are directed towards infrastructure development over a period of three years, this success could be short-lived unless coupled with dedicated efforts at the domestic level, aimed at building resilience to climate change and preserving scarce resources.

The country is about to welcome yet another monsoon season and our helpless farmers are yet to be compensated for the loss that occurred last year. Also, our infrastructure is yet to be built, crop mix is yet to be optimized and the national climate policy is yet to be implemented. Unfortunately, the present government seems to be occupied by the prevailing political instability and the exacerbating economic crisis.

The important point to highlight here is that the world sees us from a different lens. Climate financing by the international community cannot be solely used for sustainability; these finances must be coupled with a comprehensive domestic work plan and its timely implementation. The pledges made to Pakistan are conditional to our domestic strategy and actions towards combatting climate change. It cannot be the case where we only look up to the international community after the damage has been done.

In the long run Pakistan will not be able to convince the international community regarding climate financing without putting in a dedicated effort at the domestic level. Unfortunately, climate change has not found any place in recent socio-economic and geopolitical debates. To implement any action plan, there has to be a consensus among all stakeholders, which in Pakistans case is far from achieving.

The prevailing polarization in our society, particularly among decision-makers, has further suffocated the environment for dialogue. The clock is ticking and with the present fragile governance framework, Pakistan is just one rainfall or flood away from unavoidable climate-led collapse, the ultimate victim of which will be our poor farmer.

It is high time for all stakeholders to forgo their egos, put their heads together, build a national consensus over the issue, and devise short, medium and long-term workable plans by utilizing all the resources necessary to prevent disasters before the country sinks again. It cannot be left to the international community solely to take care of our issues.

Our political economy needs to be revamped, and a comprehensive plan must be chalked out to preserve crops. All political parties should sit together to deal with national issues. And building climate resilience must be prioritized. Policies must be drafted to protect small farmers; infrastructure needs to be upgraded as soon as possible or else the country which is already losing the battle at the economic front will not be able to absorb another climate-led collapse.

Courtesy The News