Pakistan’s Finance Minister, Muhammad Aurangzeb, has declared the climate crisis an “existential challenge” for his nation, issuing an urgent call for the operationalization of international financial mechanisms like the Loss and Damage Fund to combat the severe impacts of climate change.

Speaking at the Commonwealth Finance Ministers’ Meeting, Aurangzeb stressed the central importance of climate financing for developing countries. He voiced strong support for activating the Commonwealth Infrastructure and Financial Resilience Hub and a Technical Assistance Fund to enhance capacity building among member nations, according to official report today.

The minister underscored the gravity of the situation during an extensive engagement with Axel van Trotsenburg, Senior Managing Director of the World Bank Group. Referencing the devastation caused by recent floods, he explained their severe impact on the country”s agriculture sector and overall GDP growth. Both parties agreed on the critical importance of mobilizing additional resources to manage future natural calamities and the need for greater investment in climate adaptation and mitigation measures.

Separately, the Finance Minister and his delegation held a key discussion with Jihad Azour, Director of the IMF’s Middle East and Central Asia Department. The two sides reviewed Pakistan’s reform agenda, reaffirming a shared commitment to sustaining the current momentum of economic adjustments.

In a meeting with the U.S.-Pakistan Business Council, Mr. Aurangzeb briefed participants on the positive trajectory of Pakistan’s macroeconomic indicators. He affirmed that private sector growth is vital for sustaining economic progress and assured the business community of the government”s commitment to resolving challenges and providing maximum relief. He also highlighted a recent trade deal with U.S. authorities, expressing optimism for increased government-to-government and business-to-business collaborations in key sectors such as mining, agriculture, information technology, and pharmaceuticals.