Pakistan Demands Grant-Based Climate Finance Ahead of COP31
Pakistan is advocating for grant-based climate funding to avoid increasing national debt while seeking $565.7 billion by 2035 to address climate vulnerability.
The Government of Pakistan is lobbying for grant-based climate financing and climate justice ahead of the COP31 conference, arguing that funds for vulnerable nations must not increase existing debt burdens. Minister of State for Climate Change Shezra Mansab Kharal stated that while mitigation projects may be commercially viable for loans, adaptation and resilience efforts require grants.
Pakistan has submitted two project proposals totaling $39.9 million to the Loss and Damage Fund but has not yet received disbursements. The country estimates it requires $565.7 billion by 2035 to manage its climate vulnerability. Kharal emphasized that climate finance should not aggravate a debt burden that already weighs heavily on developing countries.
These demands come as Pakistan manages significant external debt. In 2025, the Government of China extended the maturity of $2 billion in loans, and the International Monetary Fund provided $2.3 billion in fresh financing to support economic stability. This situation mirrors a global trend where external debt for low- and middle-income countries reached $9.4 trillion in 2025, with the poorest nations facing the highest borrowing costs.
