ISLAMABAD, May 6, 2026 — Finance Minister Muhammad Aurangzeb said on Wednesday that Pakistan currently has access to around $600 to $700 million in climate finance and is pursuing diversified funding avenues to support climate resilience and energy transition goals.
Speaking at the DawnMedia Breathe Pakistan International Climate Change Conference 2026, Aurangzeb said the country expects to receive approximately $200 million from the International Monetary Fund, while the Asian Development Bank is also providing financial support.
He added that the government is preparing to launch its inaugural Panda bond this month, expected to raise about $250 million equivalent in Chinese yuan, as part of efforts to broaden financing sources.
The minister emphasized the importance of green financing instruments, including green bonds and locally issued green sukuk, to diversify funding and strengthen climate-related investments.
Aurangzeb urged a pragmatic approach to financing, saying the focus should be on effectively utilizing available resources rather than concentrating on large theoretical funding gaps. “The priority should be to deploy available funds efficiently,” he said.
Referring to global practices, he highlighted China’s rapid growth in green finance — accounting for nearly 40% of global green bond issuance — as a useful model for Pakistan.
He also stressed the need to build strategic reserves alongside commercial buffers and accelerate investment in renewable energy projects such as solar, wind, and hydropower to reduce reliance on fossil fuels.
The minister pointed to ongoing initiatives including energy efficiency measures, electric vehicle promotion, subsidies, and risk-sharing mechanisms aimed at facilitating the transition to a low-carbon economy.
Aurangzeb underscored the importance of strengthening domestic capital markets to mobilize indigenous resources, reduce reliance on bank financing, and channel investments toward sustainable and green development projects.