UNITED NATIONS: Pakistan has emphasized the need for capacity-building support to developing countries, stressing the importance of equipping communities and organizations with the skills and resources necessary to adapt and progress.
Speaking at the Annual Parliamentary Hearing, a joint initiative of the United Nations General Assembly (UNGA) President and the Inter-Parliamentary Union (IPU), Senator Farooq Naek underscored the crucial role of private sector financing in bridging the Sustainable Development Goals (SDG) financing gap.
He noted that governments can use blended finance mechanisms by combining public funds with private capital to support high-impact development projects that might otherwise be considered too risky for private investors.
Leading a six-member parliamentary delegation at the two-day IPU Hearing, Senator Naek addressed a session titled “Private investment for the SDGs: The role of private long-term investment and of international finance” at the UN headquarters on Friday. He acknowledged the dual nature of private investment in developing countries, pointing out that while it drives economic growth, innovation, and job creation, unchecked or poorly managed investment can result in environmental degradation, social inequalities, and economic instability.
He proposed several policy actions to encourage responsible investment, including the establishment of clear and enforceable laws that provide investment security, targeted tax incentives and subsidies to attract investment in key sectors, and greater reliance on public-private partnerships to improve infrastructure and service delivery. He also stressed the need for strict adherence to environmental, social, and governance (ESG) standards to ensure responsible investment practices.
Senator Naek further urged governments to support small and medium-sized enterprises by offering low-interest loans and financial guarantees, allowing them to play a greater role in driving innovation and employment generation. He reaffirmed Pakistan’s commitment to mobilizing sustainable and responsible private sector investments, ensuring that development remains inclusive, equitable, and environmentally conscious.
