• Says Pakistan offered loans, not aid, while billions spent defending other nations
• Meets French president, Saudi crown prince and UN chief on sidelines
• Briefs IMF chief on country’s economic outlook, hopes for loan deal soon

ISLAMABAD: Developed countries should distribute resources fairly to help mitigate the suffering of developing nations and ensure world peace, Prime Minister Shehbaz Sharif told a gathering of some 40 world leaders in Paris on Thursday, at a summit aimed at charting a fresh approach to tackling poverty and climate change.

The two-day New Global Financial Pact Summit, hosted by French President Emmanuel Macron, seeks to improve the lending system for developing countries.

It comes amid growing recognition of the scale of the financial challenges ahead, with warnings that the world’s ability to curb global warming at tolerable levels relies on a massive increase in clean energy investment in developing nations.

Before the summit, PM Shehbaz met several world leaders and heads of the United Nations and International Monetary Fund (IMF) and highlighted the challenges faced by developing nations, particularly because of climate change.

During his speech at the event, the premier stressed the need for a fair and equitable formula for the distribution of financial resources in the world. He decried the response of international institutions to Pakistan’s appeals for funds after floods in 2022, saying that it was offered loans whereas billions were being spent on the defence of “a country or countries”.

“Of course, we are very grateful to our friendly countries across the globe for their valuable and timely contribution, but largely, the cash amount had to be generated from our own resources,” he said.

“And when we approached international institutions, they said, ‘Well, we can give you loans.’”

“We know that there are tensions around the globe and billions and billions of dollars are being spent over there to defend this [country],” he said in an apparent reference to Ukraine.

“On the one hand, you are ready to provide everything for the defence of a country or countries — that is perfectly okay — but when it comes to the question of saving thousands and thousands of people from dying, then [one has] to borrow money at a very high cost. Then you have to … beg and borrow and further deteriorate your already very precarious financial situation,” he said.

He stressed the need for a “fair, equitable and judicious” formula for the distribution of financial resources. Otherwise, he said, “this world will never live in peace”.

“Unless we come forward in generous terms to provide an opportunity and a system, and a mechanism which will satisfy the most vulnerable at a bare minimum, and which will create harmony in terms of economic justice and fairness, this world shall always be in trouble.

“It’s never too late. Let’s stand up and say no to injustice,” he said.

PM meets Macron, IMF chief

In a meeting with the French president on the sidelines, PM Shehbaz said the disastrous impacts of climate change had exacerbated the difficulties of the already suffering developing states, APP reported,

He appreciated the French president for hosting the summit and inviting him to the event as well as for the warm hospitality.

He paid tribute to Mr Macron for taking a bold step towards the development of a system based on financial equity for the developing world faced with the challenges like the dearth of resources, debt burden, interest payments, and stalled development.

Both leaders also discussed other matters of mutual interest and agreed to keep up the contacts.

In a separate meeting, the premier briefed IMF Managing Director Kristalina Georgieva on the country’s economic outlook, hoping for the release of critical stalled funds.

The meeting came with about a week left before the IMF’s Extended Fund Facility agreed in 2019 expires on June 30.

Under the $6.5bn programme’s ninth review, concluded earlier this year, Pakistan has been trying to secure $1.1bn of funding that has been stalled since November.

The PM Office said in a statement he hoped that the funds would be released “as soon as possible”.

The IMF chief later tweeted the two had a “fruitful discussion” on how the IMF could continue to work closely with Pakistan on policies to maintain macroeconomic stability and advance inclusive growth for the Pakistani people.

PM Shehbaz responded by saying that Pakistan keenly looked forward to IMF board’s approval for the ninth review at the earliest.

Meeting with MBS, Kerry

The premier also met Saudi Crown Prince Mohammad Bin Salman. Both leaders agreed to expedite collaboration to bolster bilateral cooperation.

The premier’s office said in a statement the two leaders also exchanged views on matters of bilateral interest and PM Shehbaz extended best wishes to Saudi King Salman bin Abdulaziz. In return, the crown prince expressed goodwill for the government and the people of Pakistan.

Later, the prime minister met US climate envoy John Kerry and both extended good wishes to each other, according to an update on the PML-N’s Twitter account.

“Developed nations, in particular, should play a role in helping developing countries deal with the negative effect of climate change on economic growth,” the PM said.

He said after establishing the Loss and Damage Fund at COP27, promises of the provision of resources would have to be realised.

Mr Kerry agreed with the premier on climate change increasing “risks” for developing countries, the PML-N statement said. Both leaders agreed to proceed on the matter with consultation.

UN chief

In a meeting with UN Secretary General Antonio Guterres on the sidelines, the premier discussed the challenges of climate change being faced by the world, especially Pakistan.

He told Mr Guterres that he considered him the benefactor of Pakistan as “we cannot forget your help during the last year’s floods”.

He said the UN Secretary General himself was a witness to the devastation caused by climate change in the country.

The prime minister also informed the UN chief about the measures taken by the government for rehabilitation and reconstruction of the flood-hit areas.

“Reconstruction of the infrastructure affected by the floods and rehabilitation of the flood-affected people is the government’s top priority,” he added.

The prime minister also met Egypt President Abdel Fattah el-Sisi and the two leaders agreed to strengthen bilateral cooperation in multiple fields.

Published in Dawn, June 23rd, 2023