Pakistan Proposes Infrastructural Overhaul as Key to SDG Success

APP

New York: Ambassador Munir Akram, serving as co-chair of the Group of Friends of Sustainable Infrastructure Investment, emphasized the imperative for infrastructure connectivity to bolster global resilience and advance sustainable development, particularly in developing nations.

Speaking during the UN General Assembly’s Sustainability Week in New York, he underscored the significance of building global resilience and promoting sustainable development through infrastructure connectivity.

Akram highlighted the critical role of sustainable infrastructure in achieving the 17 Sustainable Development Goals (SDGs) by 2030 and meeting climate objectives, as outlined in the “Just Energy Transition” document adopted at COP-28.

Ambassador Akram highlighted the glaring gap between the current levels of public and private investments in sustainable infrastructure and the necessary funding required to achieve the SDGs and climate goals.

He noted that many developing countries lack the financial resources to finance infrastructure projects adequately and struggle to attract sufficient private investment.

To address this disparity and facilitate a just transition, Akram urged for the mobilization of significantly larger concessional finance.

This would help mitigate country and project risks, enhance credit quality, improve financing terms, and ultimately incentivize private infrastructure investment in developing nations.

Citing the United Nations Conference on Trade and Development (UNCTAD), Akram emphasized a staggering funding gap of $2.5 trillion annually in infrastructure, with two-thirds of this gap existing in developing countries alone.

Additionally, he underscored the urgent need for investment in clean energy, pointing out that for a 1.5°C scenario, annual financing needs are estimated to be around $4.3 trillion up to 2030, increasing to $5 trillion per year up to 2050.

However, investment in renewable energy only amounted to $0.5 trillion in 2022, with the majority concentrated in developed nations.

The Pakistani envoy emphasized the crucial importance of developing a robust pipeline of viable and bankable projects in developing countries to attract both public and private investments.

He proposed Pakistan’s advocacy for the establishment of a public-private entity under UN auspices to facilitate this process, leveraging UN country offices.

According to Ambassador Akram, such an entity would serve as a collaborative platform, bringing together all relevant stakeholders including recipient and donor countries, development institutions, and the private sector.

Its primary objective would be to formulate and structure a comprehensive template for national and international regulatory frameworks.

Additionally, the entity would develop de-risking measures to incentivize private investment in developing nations and present these projects for financing to appropriate public and private sources of investment capital.