Cash-strapped Pakistani government proposes budget, complete with funds to fight climate change

Presenting the budget, Finance Minister Ishaq Dar said the government is determined to work on climate resilience and preparedness against natural disasters. Rehabilitation and reconstruction projects underway in flood-hit areas will be allotted $201 million, he said.

Pakistan is among the top 10 countries most affected by climate change, experts say, while the country’s contribution to global greenhouse gas emissions is less than 1%. Last summer’s floods devastated Pakistan, killing more than 1,700 people and affecting around 33 million people, with nearly 8 million displaced. The deluge pushed millions into poverty, and the national poverty rate is expected to increase by 4%, according to the country’s post-disaster assessment report.

On Thursday, a government survey showed that severe macroeconomic imbalances, flood damages, domestic supply shocks, and international economic slowdown dampened the economic growth to just 0.29% in this fiscal year.Pakistan’s inflation this year reached 28.2%, compared to 11% last year. The current account deficit was at $3.3 billion in July-April, compared to $13.7 billion in the same period a year earlier.