THE ROLE OF FINANCIAL MECHANISMS IN FACILITATING CLIMATE CHANGE IN PAKISTAN: CHALLENGES AND OPPORTUNITIES

الملخص

The increasing frequency of extreme weather events, water scarcity, and agricultural disruptions caused by climate change in Pakistan highlight the critical need for efficient financing structures to fund mitigation and adaptation activities. This study looks at how financial systems help Pakistan respond to climate change, identifying both opportunities and concerns. Inadequate institutional capacity, a growing population reliant on climate-sensitive industries like agriculture, and limited financial resources all contribute to Pakistan's susceptibility to climate change. The nation's climate resilience is greatly influenced by current financial systems, such as private sector investments, domestic budgetary allotments, and international climate funds like the Green Climate Fund. However, there are a number of obstacles that these mechanisms must overcome, including a lack of coordination between government agencies and stakeholders, complicated access procedures, and inadequate funding. The analysis pinpoints important chances to improve Pakistan's financial systems. These include enhancing public-private partnerships for climate infrastructure projects, creating novel financial instruments like green bonds and climate insurance, and more efficiently utilizing international climate finance. Enhancing the effectiveness of climate investments and streamlining resource allocation are further benefits of strengthening institutional frameworks and policy coherence. Building local project development capability, including climate issues into national budgeting processes, and increasing accountability and openness in the use of climate funds are some of the recommendations. Pakistan can improve its finance systems for climate action and promote resilience and sustainable development in the face of growing climate dangers by tackling these issues and grasping possibilities. By providing policymakers and stakeholders with insights to maximize resource allocation and promote effective climate interventions, this study adds to the conversation on climate finance in poor nations.