Finance Minister Muhammad Aurangzeb has stated that climate change is exerting a tangible and detrimental impact on Pakistan”s Gross Domestic Product (GDP) growth and national resources.
Speaking during a discussion on global debt at the World Economic Forum in Switzerland, the minister asserted that the environmental threat for Pakistan is real, pointing to the increasing frequency and severity of climate-related calamities affecting the nation, according to official information today.
To address these financial pressures, Mr Aurangzeb announced that the government has decided to launch its inaugural Panda Bond by the end of this month.
He specified that this financial instrument is going to be a green bond, which will be used to help people.
Meanwhile, at a separate high-level panel discussion held on the sidelines of the forum, the minister underscored the importance of a three-pronged economic strategy.
He identified fiscal discipline, the productive use of debt, and export-led growth as the key pathways to unlocking new sources of economic expansion.
Mr Aurangzeb elaborated that for countries like Pakistan, it is essential that debt is directed toward investments that generate an exportable surplus rather than fuelling consumption.
This strategic allocation of funds, he concluded, is vital for enabling sustainable repayment and achieving long-term growth.