Finance Minister Muhammad Aurangzeb has announced that Pakistan will soon introduce a climate fund system to counter the effects of environmental change.

He stated that positive discussions had taken place with the International Monetary Fund (IMF) regarding the initiative, which aims to tackle the growing risks posed by climate change.

Speaking at an event marking World Glacier Day, the finance minister warned that glaciers are melting at an alarming rate, creating serious environmental and economic challenges for the country.

He stressed that if Pakistan fails to act, the economy will suffer severe consequences.

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Aurangzeb highlighted the rising pollution levels and emphasised the need for new climate-focused projects.

He noted that economic activities in Lahore are frequently disrupted due to heavy smog, underscoring the need for urgent action. The government, he said, is committed to addressing these challenges through long-term policy measures and international collaboration.

Later, in Islamabad, the Economic Coordination Committee (ECC), chaired by Finance Minister Aurangzeb, approved several key financial decisions.

A Rs2 billion supplementary grant was sanctioned for the Ministry of Information and Broadcasting, while funds were also approved to clear outstanding advertisement payments to media houses. The ECC further granted Rs430 million to the Ministry of Defence, alongside allocations for SAP schemes in Punjab.

The meeting also approved Rs250 million for the Jinnah Medical Complex & Research Centre, along with government investment in a 1,000-bed modern medical facility. In another significant decision, the committee approved the gradual phase-out of the State Bank’s Long-Term Financing Facility (LTFF) and the transfer of the Rs330 billion LTFF portfolio to EXIM Bank.

Additionally, the ECC sanctioned a Rs1 billion supplementary grant and approved a Rs24.556 million payment to an Australian company as per Supreme Court directives.

The government’s latest decisions reflect a strong commitment to economic stability, climate resilience, and structural reforms.

With climate change posing an increasing threat, policymakers are now focusing on securing long-term financial resources to mitigate its impact while ensuring sustainable economic growth.