Pakistan and China exchange views on climate change fiscal management

A four-day technical exchange among officials from the Ministry of Finance and Climate Change and a leading environmental CSO with a delegation from China came to a close on last Firday i.e 9th September. The South-South exchange, convened by UNDP with financial support from U.K.’s DFID, aimed to improve both countries’ understanding of how to improve budget and financial management in light of climate change’s increasingly severe impacts. 

The talks, which took place in both Islamabad and Lahore, were facilitated by UNDP’s climate and governance advisers and focused on how to collect better data on climate-related spending and improve fiscal management. This is a critical first step to better identify, manage and mobilise more finance to address the issue.

Pakistani government officials and representatives of Leadership for Environment and Development (LEAD) interacted and shared lessons with the Chinese Academy of Fiscal Sciences (CAFS) on these matters. As both China and Pakistan are very decentralized fiscally, a core focus was on carrying out Climate Public Expenditure and Institutional Reviews (CPEIR) at provincial level. PCAFS is preparing to undertake a CPEIR with the Hubei Provincial Government in China in the coming months.

The Pakistani delegation provided insights from the country’s own recent experiences in order to help the Chinese team prepare for this upcoming work in Hubei. The opportunity for Pakistan to share its experiences with its neighbour will be reciprocated as CAFS undertakes research to develop new cost-effectiveness tools related to climate spending. Whereas the Chinese team took keen interest in the CPEIR carried out by Pakistan at sub national level the Pakistan officials showed keen interest in understanding the Chinese plan to carry out a cost effective analysis of the projects with respect to Climate Change.

“UNDP is pleased to have facilitated this discussion. It was a timely opportunity to build on a common understanding of how to approach climate spending reviews, which Pakistan has successfully now begun to implement at the Provincial level,” said Amanullah Khan, Head of Environment Unit, UNDP Pakistan.

“Opportunities for south-south exchange between countries most directly at risk from the effects of climate change not only help strengthen relationships, but also enable country experts to develop their own well-suited, and most importantly, sustainable solutions to complex challenges,” he/she added.

“UNDP stands by to provide extra assistance and guidance to the two countries where required. Progress made toward more equitable and effective climate finance and budgeting for those most in need has been very encouraging.”

Mr. Asad Maken
Ms. Fatimah Inayet