Prime Minister Shehbaz Sharif on Friday said the world should “course correct” by rethinking the global financial architecture, urging everyone to rise to face the challenge hand in hand in a spirit of solidarity and compassion.
“The world should use [the] present economic and climate turbulence as an opportunity for course correction,” PM Shehbaz said on Twitter. He was in Paris to attend the Summit for a New Global Financing Pact.
The two-day New Global Financial Pact Summit, hosted by French President Emmanuel Macron, seeks to improve the lending system for developing countries.
It comes amid growing recognition of the scale of the financial challenges ahead, with warnings that the world’s ability to curb global warming at tolerable levels relies on a massive increase in clean energy investment in developing nations.
He took to Twitter on Friday to elaborate on his stance regarding the “exogenous shocks that created a polycrisis for developing countries like Pakistan”.
During the interaction at the summit, PM Shehbaz drew world leaders’ attention to these shocks which resulted in stalled growth, supply chain disruption which resulted in commodity prices soaring, extreme weather events which precipitated unprecedented floods, and the back-breaking inflation, he stated.
“The international community should deliver on the commitments they made at COP27 in Sharm al-Sheikh,” the prime minister said.
The Sharm el-Sheikh Climate Change Conference (COP 27) brought together more than 45,000 participants towards the end of 2022 to take action towards achieving climate goals agreed upon under the Paris Agreement and the Convention.
According to the premier, the community should come forward and deliver on the operationalization of the Loss and Damage Fund which would provide grants that do not increase the indebtedness of developing countries.
Shehbaz discusses new avenues of collaboration with IsDB president
PM Shehbaz also met the Islamic Development Bank (IsDB) President Muhammad Al Jasser, on the sidelines of the summit.
According to a PM office press release, the PM discussed new avenues for collaboration and the long-standing cooperation and engagement between Pakistan and IsDB, further taking stock of the progress on various projects.
The prime minister lauded IsDB’s USD 4.2 billion investment at the international conference on Climate Resilient Pakistan held in Geneva on January 9 in support of Pakistan’s post-flood recovery.
He also acknowledged Jasser’s personal contribution and leadership role in galvanising the huge volume of financial support.
“IsDB’s beneficial partnership with Pakistan will go a long way in helping the people of the country to rebuild their lives and livelihoods and also support the sustainable development objectives of the government,” the prime minister stated.
He also briefed Jasser on the recently formed Special Investment Facilitation Council which streamlines foreign investments in the country.
PM calls for ‘fairness’
Yesterday, PM Shehbaz met several world leaders and heads of the United Nations and International Monetary Fund (IMF) on the sidelines of the summit and highlighted the challenges faced by developing nations, particularly because of climate change.
During his speech at an event, the premier stressed the need for a fair and equitable formula for the distribution of financial resources in the world. He decried the response of international institutions to Pakistan’s appeals for funds after floods in 2022, saying that it was offered loans whereas billions were being spent on the defence of “a country or countries”.
“Of course, we are very grateful to our friendly countries across the globe for their valuable and timely contribution, but largely, the cash amount had to be generated from our own resources,” he said.
He stressed the need for a “fair, equitable and judicious” formula for the distribution of financial resources. Otherwise, he said, “this world will never live in peace”.
“Unless we come forward in generous terms to provide an opportunity and a system, and a mechanism which will satisfy the most vulnerable at a bare minimum, and which will create harmony in terms of economic justice and fairness, this world shall always be in trouble.
“It’s never too late. Let’s stand up and say no to injustice,” he said.
