Rising debts killing developing countries: PM

BAKU: Calling enhanced debt burden on developing countries ‘a debt trap’, Prime Minister Shehbaz Sharif on Tuesday urged the world community for redefining the global climate finance to enable climate vulnerable developing countries to meet their NDC (Nationally Determined Contributions) goals, half of which may take around US$6.8 trillion by 2030.

The prime minister, addressing the high-level climate finance roundtable on the sidelines of COP29 -- international climate negotiations’ multilateral forum held under the patronage of the United Nations Framework Convention on Climate Change (UNFCCC) -- emphasised the urgent need to build momentum for reforming international financial architecture, “forging a path where no nation is left behind in the global response to climate change.”

While elaborating the purpose of the roundtable, he briefed the participants that it was intended to foster new thinking on an old problem that was becoming complicated on all the international climate forums without yielding substantial results.

“We stand at a crucial threshold where global climate finance framework must be redefined to effectively meet the needs of vulnerable nations. Despite years of promises and repeated commitments, the gaps are growing in quantum leaps leading to egregious barriers in achieving objectives of UNFCCC. We all agree that financing resilience as well as ambition is the most urgent need of the hour,” the prime minister said.

He said that the developing countries needed to deliver to their masses on NDCs that was why it was imperative to spur both ideas and discourse to make international climate finance more responsive, equitable and sufficient enough to address solutions at various scale enhancing effectiveness of climate finance.

Shehbaz underscored that the donor countries should fulfill their commitment to provide 0.7 percent of their gross national income as developing assistance and capitalise existing climate funds.

“One such commitment is the $100 billion annual climate finance pledge made over a decade ago at COP-15 is now reported by OECD to reach only $160 billion. Despite this number remaining a tiny proportion of the defined need, a significant part over this financing is disbursed in the form of loans, further enhancing the debt burden on developing nations and potentially pushing towards mounting debt traps. I call it ‘death traps ’,” the prime minister said.

Pakistan can understand the agony and pain of other vulnerable developing countries as it had faced two devastating floods and still recovering from the loss, he said, adding: “In order to spur some transparency and coordination into the financial commitments made to the developing countries on climate transfers, Pakistan alongside many other developing countries call for stronger, more equitable climate finance mechanisms under the UNFCCC.”

He suggested a mechanism be set up to measure the unfulfilled pledges, fragmented at an incomplete landscape of climate funds to developing countries. “What I call INDCs [Intended Nationally Determined Contributions] whereby major historic emitters should account for climate finance commitments for both mitigation and adaptation pledges reflecting their proportionate responsibilities,” he added.

The prime minister also highlighted challenges to developing countries in embracing clean energy transition to offset their carbon emission from power sector. He mentioned that the developing countries looking to enable energy transition should also get preferential capacity and technical assistance in fast tracking consortium financing through various financial instruments.

He suggested the UNFCCC to setup a committee to review internationally-determined contributions (IDCs) periodically.

The forum was also participated by heads of states of different countries and high level dignitaries, state representatives, global experts and international media.

Separately, addressing a high-level event of ‘Glaciers 2025: Actions for Glaciers’ hosted by Tajik President Emamoli Rahmon, PM Shehbaz linked the survival of humankind on the Planet Earth with the compact health of glaciers and reiterated that Pakistan, being the most affected country, stood ready to work with the international community to protect these valuable natural resources.

He said Pakistan was home to 7,000 glaciers which provided an approximately 60 to 70 percent water for the Indus River flow, supporting 90 percent of agriculture and serving its 200 million people. “However the glaciers that provide water for this river have been shrinking over a period of time and at an alarming time, which is estimated at about 23 percent decrease since 1960,” he added.

The prime minister stressed that they must act and act now not only for these glaciers, but for the survival of people and the communities that depended upon them in various parts of the world.

Meanwhile, Prime Minister Shehbaz interacted with the global leaders as they gathered here to participate in the opening plenary “World Leaders’ Climate Action Summit” of the 29th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP29).

President of Azerbaijan Ilham Aliyev and United Nations Secretary-General Antonio Guterres warmly received the prime minister as he arrived at the summit venue, according to a PM Office press release.

As the participating leaders gathered for a family photo, PM Shehbaz held an informal interaction with them and exchanged pleasantries besides discussing matters of mutual interest.

He interacted with UAE President Sheikh Mohamed bin Zayed Al Nahyan and discussed matters of mutual interest, including bilateral cooperation in the climate change field.

During interaction with Turkish President Recep Tayyip Erdogan and Turkish First Lady Emine Erdogan, the two sides discussed ways to cooperate in highlighting the issues of climate change and environmental pollution at the international level.

In their informal interaction, PM Shehbaz and UK Prime Minister Sir Keir Starmer exchanged views on the promotion of Pak-UK relationship.

He also met Uzbek President Shavkat Mirziyoyev and Tajikistan President Emomali Rahmon and discussed protection of glaciers and water resources in Pakistan and Central Asia as well as the strengthening connectivity with the countries.

Shehbaz also interacted with President of Nepal Ram Chandra Poudel and Chief Advisor of Bangladesh Dr Muhammad Yunus, and discussed the issue of increasing temperature in South Asia, risks posed by rising sea level, and the conservation of forests, besides the bilateral ties.

Deputy Prime Minister and Foreign Minister Ishaq Dar, Coordinator to Prime Minister on Climate Change Romina Khurshid Alam accompanied the prime minister.

Earlier, PM Shehbaz joined the global leaders as they gathered here to participate in the opening plenary “World Leaders’ Climate Action Summit” of the COP29.

On arrival at the summit venue, United Nations Secretary-General Antonio Guterres and President of Azerbaijan Ilham Aliyev welcomed the prime minister.

Separately, the prime minister held a bilateral meeting with his Danish counterpart Mette Frederiksen on the sidelines of the COP 29.

Meanwhile, PM Shehbaz appreciated the unwavering commitment of the Muslim World League (MWL) to promoting Islamic unity and fostering mutual understanding around the world. The prime minister said this responding to a social media post by MWL Secretary General Mohammed Al-Issa after they met in Riyadh on the sidelines of the Arab-Islamic Summit.

Mohammed Al-Issa, on his X timeline had expressed his pleasure to meet the prime minister and thanked him for recognising the MWL’s active role in fostering Islamic solidarity, its pioneering efforts to unify the positions of Muslim scholars, and its ongoing global initiatives in conveying the true message of Islam.

In response, the prime minister also thanked the MWL chief for the “warm welcome and kind words” and said that Pakistan and the MWL shared a vision for a world where the “true essence of Islam—peace, compassion, and solidarity—guides our actions and inspires positive change globally.”