Pakistan and China share expertise on climate change fiscal management

Sep 9, 2016

ISLAMABAD, 9 September 2016 – Officials from Pakistan’s Ministries of Finance and Climate Change, the Leadership for Environment and Development (LEAD), and members of the Chinese Academy of Fiscal Sciences (CAFS) today concluded four days of discussions in Islamabad and Lahore. These talks, facilitated by the United Nations Development Programme (UNDP) and funded by the United Kingdom Department for International Development, provided a unique opportunity for better understanding of how budgeting and financial management can be improved in view of the increasing impacts of climate change in both countries. 

The discussions focussed 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 finances to address climate change impacts. As both China and Pakistan are heavily fiscally decentralized, a core focus was on carrying out a detailed assessment of climate change finances, or Climate Public Expenditure and Institutional Reviews (CPEIR), at the provincial level.

CAFS intends to conduct a CPEIR with the government of Hubei province in the coming months, while Pakistan has already carried out this assessment in Khyber Pakhtunkhwa province and at the federal level. Whereas the Chinese team were keenly interested in the lessons shared by Pakistani officials and LEAD representatives, the Pakistani team benefited from enhanced understanding of the Chinese plan to carry out a cost effective analysis of 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 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 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.”

The CPEIR methodology was developed by UNDP's Governance of Climate Change Finance programme, and

enables governments to make more informed planning and budgeting decisions related to climate change, prioritize projects, improve transparency in climate spending, and support the case for additional climate related funding.

Note to editor:

UNDP’s Governance of Climate Change Finance programme works with governments and civil society throughout the Asia-Pacific region, providing tools and advice to ensure climate funds are mobilized, managed and targeted more effectively for the benefit of the poor, marginalized and vulnerable.

For more information, visit: http://www.CFADE.org

Media contact:

Asad Maken, Public Finance Specialist, UNDP, asad.maken@undp.org

Fatimah Inayat, Communications Analyst, UNDP, +92 51 835 5650 or fatimah.inayet@undp.org

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