Govt plans $250 million ‘green fund’

Pakistan is working on launching a $250 million Green Impact Fund (GIF) to channel international commitments meant for climate change to finance green micro and small enterprises (MSMEs) in the country. The plan proposed by Karandaaz — a non-profit firm drawing funds from international donors — came under discussion at a meeting of the PM’s Committee on Social Impact Financing presided over by Finance Minister Muhammad Aurangzeb on Wednesday. “This fund would offer concessional loans, equity with first-loss guarantees, and technical assistance, drawing support from global climate financing sources, commercial institutions, and public or donor funding”, said the Ministry of Finance. The meeting, also attended by top executives of several social sector organisations underscored the potential of such initiatives to foster economic growth, address climate challenges, and promote bottom-up development by creating jobs and empowering underserved communities.