Ministry of Climate Change has come up with an innovative financing mechanism for Ten Billion Tree Tsunami (TBTT) project by offering debt for nature swap. In this regard a strategy meeting was chaired by the Adviser to the Prime Minister on Climate Change, Malik Amin Aslam in order to devise a mechanism for debt swap with potential countries. Adviser was also briefed by the representatives of the UNDP on the proposed mechanism. After the finalization, strategy will be presented to the Federal Cabinet for approval. While chairing the meeting, adviser on Climate Change appreciated the idea and directed the relevant departments to start working on the strategy immediately. He said that Ten Billion Tree Tsunami project will cost PKR 125 Billion (USD 800 Million) and that Government of Pakistan had allocated an amount of PKR 7.5 Billion for the current financial year. There was a financing gap of USD 754 Million over the period of four years. “This is the golden opportunity to bridge the financing gap for the project of utmost importance”. He added. “Pakistan has already done this practice for education and rehabilitation sectors in the past with Canada, Germany, Italy, Norway and Belgium”. Adviser was told that many countries in the world had availed the opportunity of debt swapping for nature with Paris Club and others. Most of these countries belonged to Latin America and Africa. It is pertinent to mention here that Pakistan’s external debt stands at USD 85 Billion while the largest component of annual budget goes for debt servicing. Swapping of even a Billion Dollars of debt against TBTT would not only help bridging the financing gap but would also prove a respite amid current fiscal struggle and balance of payment. Further details of the debt swap mechanism will be available once the strategy is finalized. *****
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