Congratulations … Dr Farrukh Saleem
Congratulations PM Shehbaz Sharif – the 2023 International Conference on Climate Resilient Pakistan was a resounding success, exceeding all expectations and widely recognized. This achievement must be celebrated at home as well. The Islamic Development Bank (IDB), World Bank, Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB) and the European Union (EU) have placed full confidence in the government led by PM Shehbaz Sharif. The support from countries such as Saudi Arabia, France, China, Germany, Japan, the US and the UK has also demonstrated their trust in the integrity, ability, and reliability of the government led by PM Shehbaz Sharif.
The pledged amount is $10 billion, with roughly 90 per cent being concessional project loans and the remaining being bilateral grants. These pledges from the IDB, World Bank, ADB, AIIB and the EU are dependable and trustworthy. These institutions have the resources they have pledged and have demonstrated a clear intention to use them to make Pakistan more climate resilient.
It is important to note that these pledges cannot be used to fill the government’s budgetary deficit, trade deficit, or to repay loans. They can only be used for three specific purposes: to build climate-resilient infrastructure, to generate climate-resilient economic activities, or the setting up of an early warning system (EWS). Additionally, the funding mechanism requires Pakistan to raise 50 per cent of the funding from its own resources in order to receive funds from the pledged amount.
Now that the funding exists, and the intention to spend it in Pakistan is clear, it is up to Pakistan to convert these pledges into actual disbursements. Pakistan has a history of not fully converting pledges into disbursements, so a strong commitment from the government, good governance, and transparency will be necessary.
To achieve this, a six-point plan of action can be implemented. One, establish an implementing agency. Two, build the necessary technical and administrative capacity. Three, design a plan of action with specific goals, milestones and timelines. Four, allocate financial and human resources to implement the plan of action. Five, establish systems to monitor and evaluate the progress. Six, maintain regular communication with the donors.
Fortunately, PM Shehbaz Sharif is known to be a hard taskmaster and an administrator par excellence. He has the skills and experience necessary to manage resources effectively, make sound decisions, and take appropriate actions to make Pakistan more climate resilient. While some reports indicate that the rate of disbursement of climate finance pledges made at UN climate conferences is low, ranging from 20 per cent to 50 per cent, with this leadership and plan of action, we can exceed those expectations.
The writer is a columnist based in Islamabad. He tweets @saleemfarrukh and can be reached at: farrukh15@hotmail.com