ISLAMABAD: Pakistan’s Federal Minister for Climate Change and Environmental Coordination Dr. Musadik Malik on Friday said environmental degradation posed serious systemic risks to the global financial system, calling for stronger international cooperation and more accessible climate finance for vulnerable countries.

The minister was speaking at a high-level leadership dialogue titled “The Bottom Line: Why Tackling Environmental Degradation Is Critical to the Future of the Global Financial System,” held on the sidelines of the United Nations Environment Assembly (UNEA) in Nairobi, said a press release issued by Pakistan’s Ministry of Climate Change on Saturday.

Dr. Malik highlighted the stark disparity faced by nations like Pakistan, noting that countries most affected by climate change have contributed the least to global emissions yet require substantial financial support to build resilience and protect development gains.

"Addressing climate change is a matter of collective global responsibility," Dr. Malik stated during his address, stressing the need for equitable financial flows and strong international cooperation.

The dialogue brought together global leaders, policymakers, financial regulators and experts to discuss system-wide approaches aimed at redirecting private finance towards environmentally sustainable pathways.

According to the press release, discussions focused on aligning financial flows with climate action, biodiversity protection, land restoration, pollution reduction and sustainable waste management, while strengthening long-term economic, social and environmental resilience.

Participants underscored the importance of policy coherence, sound regulatory frameworks and whole-of-government approaches in creating enabling conditions for sustainable finance. Emphasis was also placed on mobilizing private capital for the transition of high-impact sectors and integrating environmental risks into financial decision-making.

The minister reaffirmed Pakistan’s commitment to climate-resilient development and to supporting global efforts to align financial systems with environmental sustainability.

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At UN, Pakistan urges climate finance to counter financial risks