Pakistan will sign agreements with Germany, Italy, Canada and the United Kingdom on Saturday, for millions of dollars in debt relief in exchange for investments in environmental conservation efforts across the country.
This was stated by Minister of State for Climate Change Zartaj Gul in an interview with Arab News.
She said the signing of debt-for-nature agreement is part of a line-up of events for World Environment Day on June 5, which Pakistan will be hosting for the first time.
Zartaj Gul said under the agreement, Pakistan will not pay back debts to the lender countries, but against that part of the loan, it will make progress on the restoration of the natural environment.
Last week, in a first, Pakistan sold a green bond at a yield of 7.5 per cent. The money raised from the bond will be used by Wapda to build Diamer-Bhasha and Mohmand dams.
Wapda — the first public entity to avail this offer — sold these bonds in the international market in line with the environmentally-friendly funds — green debt — over the next two years. Pakistan aims to tap soaring investor demand globally for green debt as it pushes forward with plans to increase renewable and hydroelectric generation to 60 per cent by 2030, the Wapda chief had said.