Latest news with #FFD4
Daily News Egypt
06-07-2025
- Business
- Daily News Egypt
UN conference cites Egypt's ‘NWFE' programme as model for development finance
The final declaration of a United Nations conference has cited Egypt's country platform for the 'NWFE' programme as a model for a new generation of platforms and innovative tools to reform the global financial architecture. The declaration, issued following the 4th International Conference on Financing for Development (FFD4) in Seville, Spain, was part of the 'Seville Pledge,' the first internationally agreed development financing pledge since 2015. The pledge aims to close a $4 trillion gap in financing for the Sustainable Development Goals and calls for a restructuring of the global financial system amid escalating debt crises and declining investment. The conference launched 130 initiatives under the 'Seville Platform for Action (SPA)' to stimulate large-scale investment, address debt and development crises, and reform global finance. Rania Al-Mashat, Egypt's Minister of Planning, Economic Development, and International Cooperation, said the NWFE programme, launched in 2022, anticipated global calls for platforms that integrate development and climate action. 'At a time when countries are racing to establish national platforms to coordinate development efforts and climate investment, and as successive international forums and events emphasize the importance of national platforms and strategies as a tool to attract investment and capital flows, the country platform of the 'NWFE' program, launched by Egypt in 2022, stands out as a pioneering model that anticipated global calls to launch a platform focused on integrating development and climate action efforts, and contributes to mobilizing climate investments in priority areas,' Al-Mashat said. The minister pointed out that the programme, which focuses on the nexus of water, food, and energy, has mobilised $4 billion in concessional financing over two and a half years. This funding is for renewable energy projects with a capacity of 4.2 gigawatts, supporting Egypt's efforts in renewable energy and green transition. Al-Mashat noted that Egypt used a specific approach in designing and implementing the programme, coordinating with national entities and development partners. This enabled the country to maximise public investment and mobilise concessional financing, debt swap mechanisms, grants, and private investment for its projects. She added that 'the projects currently being implemented have become an example of constructive partnerships between various relevant stakeholders, represented by coalitions of local and foreign companies, multilateral development banks, international institutions, and innovative financial mechanisms from bilateral partners such as debt swaps, for effective implementation and achieving desired outcomes.' The ministry has adopted a transparent approach and recently launched a second follow-up report on the programme's performance. The programme was also highlighted in an analytical article by Richard Calland, a professor at the University of Cambridge, published on the academic and media platform The Conversation. The article, titled 'Development Finance in a Post-Aid World: The Role of National Platforms,' discussed the importance of national platforms as financial tools. It cited the 'NWFE' platform as an innovative model for coordinating development finance towards national priorities, particularly in water, food, and energy. Prominent initiatives launched under the 'Seville Platform for Action' include a centre for debt-for-development swaps led by Spain and the World Bank; Italy's conversion of €230m of African debt into development investments; a 'debt standstill clause coalition' of countries and development banks to suspend debt payments during crises; and the Seville Debt Forum to improve coordination in debt management. The conference in Spain was the first comprehensive UN conference on financing for development since 2015. It drew more than 15,000 participants and hosted 470 events, building on the outcomes of the 2015 Addis Ababa Action Plan, the 2008 Doha Declaration, and the 2002 Monterrey Consensus.
Mint
04-07-2025
- Business
- Mint
Global financial imbalance hurting climate, development goals: FM Sitharaman
New Delhi: Finance minister Nirmala Sitharaman on Friday flagged persistent asymmetry in global financial flows as a major impediment to sustainable development in the Global South, warning that it continues to stifle long-term investments in clean energy, urban mobility, and climate-resilient infrastructure. Speaking at the New Development Bank's (NDB) Governors Seminar in Rio de Janeiro, Brazil, Sitharaman urged a fundamental rethink of the global financial architecture to better align with the development priorities of emerging and low-income economies. 'The asymmetry in global financial flows deters long-term investment and delays critical progress, especially in renewable energy, urban mobility and climate resilient infrastructure,' she said. 'The result is the widening gap between development potential and the financial realization," she added. Sitharaman also highlighted the complexity of balancing growth and sustainability, particularly in democracies like India where expanding access to housing, healthcare, education, and livelihoods remains a critical imperative. 'The real challenge, therefore, is not choosing between development and sustainability, but designing policies, particularly in partnership with emerging markets and developed economy countries that foster inclusive growth and strengthen sustainable development,' she said. The finance minister added that India is actively aligning its financial system with climate and development goals by deepening its green finance ecosystem. 'India has laid a strong foundation for green finance in recent years—through Sovereign Green Bonds, ESG disclosure mandates, and the proposed taxonomy for climate finance,' Sitharaman said. 'We are building a more resilient, inclusive, and innovation-driven financial architecture that connects capital with climate imperatives.' The finance minister underscored the role of institutions like the New Development Bank in reshaping development finance for the Global South. 'The NDB was set up to bridge a clear gap in the global financial architecture, one that responds to the unique needs of developing economies,' she said. The NDB, formerly the BRICS Development Bank, was established in 2014 by Brazil, Russia, India, China, and South Africa to mobilize funding for infrastructure and sustainable development projects. Headquartered in Shanghai, it serves as a credible alternative to Western-led institutions like the World Bank and the International Monetary Fund. Sitharaman's remarks in Brazil echoed the concerns she raised earlier this week at the 4th International Conference on Financing for Development (FFD4) in Seville, Spain, where she called for urgent reforms to the global financial system, expanded climate finance, and faster sovereign debt restructuring, especially for vulnerable economies. The calls come amid growing alarm over stalled progress on the United Nations' Sustainable Development Goals. The UN estimates a $4 trillion annual shortfall in development financing, severely constraining the ability of countries to invest in essential services and transition toward sustainable, inclusive growth.
Business Recorder
04-07-2025
- Business
- Business Recorder
4th International Conference on Financing for Development Debt and Climate — II
Sadly, unlike the lack of media coverage, and very little discussion of policy circles on this – both on the government, and opposition sides, and in the academic arena – the '4th International Conference on Financing for Development' (FFD4) holds utmost importance. This is because it is not only taking placing after ten years, but at a time when both adequate level of finance for fighting the existential threat of climate change crisis is urgently needed, and also when it is very important to deal with fast brewing sovereign debt crisis in a number of developing countries, including Pakistan. Moreover, while the first conference in this regard took place well back in 2002, called the '2002 Monterrey Consensus', which placed responsibility on international community to provide finance for international economic development under a comprehensive global framework, it was in the second such conference, the '2008 Doha Declaration', that other aspects in the shape of gender perspectives and financing for dealing with climate-related issues were also made part of its agenda. Debt and climate — I Later on, in the third addition of this conference, the '2015 Addis Ababa Action Agenda' enhanced the scope of financing to include 'economic, social and environmental' concerns, and to view them in an integrated way, considering at the same time, the needs of financing for meeting '2030 Agenda and the SDGs [Sustainable Development Goals]' that were prepared in parallel to this conference. It is important to note that due to weak multilateral spirit – which was also amply seen during the Covid-19 pandemic in the shape of practice of 'vaccine nationalism', and through lack of provision of development finance to deal with the urgent needs of the pandemic, and without compromising on meeting the SDG –there has been very slow progress on evolving an effective framework for finance globally for not only providing sustainable finance, both in terms of quantity and conditions, so that developing countries, in particular those that are also highly climate challenged, are not pushed to take on a lot of loan. Nevertheless, the level of debt globally has increased in an astronomical level, especially in developing countries over the last few years, whereby resolution of a serious global debt issue is one of the main objectives of the FFD4. In December 2024, the United Nations Secretary-General formed an 'Expert Group on Debt' to provide an informed analysis to FFD4 so that proper deliberation could take place in this regard in this Conference, which took place during June 30 – July 3. The Report from this expert group titled 'Confronting the debt crisis: 11 actions to unlock sustainable financing' while highlighted that 'The global financing landscape has evolved significantly, and not in favor of the developing world' and that 'Instead of funding schools and hospitals, or job creation, developing countries are trapped in a vicious cycle of rising interest payments and shrinking fiscal space, privileging their debt service payments over their investment for the Sustainable Development Goals (SDGs).' Moreover, the Report while rightly highlighting the severity of debt crisis pointed out: 'What has been called a 'silent' debt crisis is silent no more. Across the Global South, debt burdens are not only reducing prospects for economic growth and long-term resilience but are also crushing sustainable development. In 2023, 38% of developing countries - nearly half of which were located in Africa - spent over 10% of their government revenues on interest payments. Over two-thirds of low-income countries are now either in debt distress or at high risk of it, yet only four - all in Africa - have undergone formal restructuring through the G20 Common Framework. With private creditors holding 54 percent of external public and publicly-guaranteed debt in 2023, restructuring has become slower, costlier, and more complex.' It is in this context that the Report suggested 11 actions across three categories 'multilateral reforms', 'co-operation between countries' and 'national measures'. Among the first category, suggestions included (a) repurposing and further replenishing 'Debt Reduction Trust Fund (DRTF)', and 'Catastrophe Containment Relief Trust (CCRT)' to enhance the scope to include middle-income countries, in addition to low-income poor countries; (b) allowing pause in debt repayments by crisis-hit countries, which are vulnerable to climate change or other natural disasters, indicating in this regard 'Mechanisms like climate-resilient debt clauses (CRDCs) and other state contingent debt instruments can formalize such standstills in debt contracts, improving resilience without requiring lengthy renegotiations'; (c) including middle-income countries in the 'G20 Common Framework', and reducing completion time for process related with restructuring'; (d) need for augmenting IMF's 'Debt Sustainability Analysis' in terms of scope, and timelines, so that more accurate appreciation of debt sustainability, where the report pointed out: 'Most developing countries rely on DSAs produced by the IMF, which have limited scope, a short-term focus and sometimes overestimate the capacity of countries to recover'; and (e) augmenting the underlying process for re-channeling of SDRs for much-need greater speed, where the Report indicated: 'A potential solution to the rechanneling constraint arising from SDRs reserve asset status could be by modifying quotas to pre-allocate a portion of new issues to MDB recapitalization, before they are allocated to IMF members and become part of their reserves.' In the second category, among other suggestions, the Report recommended enhancing the pace of adoption of 'debt swaps', for which it would help to establish hubs for better information sharing. Here, the Report stated that 'Debt swaps can be an effective instrument to reduce debt burdens while directing resources toward critical development priorities such as climate action, nature, health, education, and poverty reduction. However, their use remains limited due to technical complexities, high transaction costs, and the absence of standardized frameworks. Similarly, other innovative financial instruments, such as blue bonds or SDG-linked bonds, remain underutilized despite their potential for positive impact. Establishing a centralized platform or hub could help scale up the use of these instruments by serving as a one-stop resource for technical assistance, capacity building, and knowledge-sharing.' The Report starts of in a kind of 'defensive way', which is unacceptable given the 'strong offensive' from not only fast-unfolding climate change crisis, the lack of multilateral finance being provided – including low level provisioning of special drawing rights (SDRs) by International Monetary Fund (IMF), where it was back in August 2021 that majority of the allocations from $650 billion went to already rich countries, since even in an exceptional time of pandemic, allocations were made on usual routine of 'quota' rather than being needs-based – and an inadequate global debt restructuring framework, when it points out that rather than suggesting most importantly needed steps, an alternative approach is being taken where what is likely to be politically feasible is what is being suggested. The Report highlights this approach as 'While bold and ambitious reforms are essential, they must also be pragmatic and feasible for near-term implementation. Proposals with limited prospects for political traction will fall short of driving meaningful change. …For this reason, the policy proposals of the Expert Group do not address all the desirable or necessary changes that would improve the global debt architecture. …Alternative approaches also have to be considered. …Applying this approach has led the Expert Group to identify a set of eleven policy priorities.' Instead, given the fast-closing window with regard to keeping global average annual warming below 1.5C and a quick ballooning of global debt crisis, should have resulted in pushing the political will to do what is essential must. The problem is time, in addition to already very slow progress with regard to meeting SDGs-related target for 2030, not to mention that lack of multilateral finance, and a wrong persistence with over-board austerity policy has drastically taken away from domestic fiscal space, negatively impacted foreign exchange reserves accumulation, increased imported- and cost-push inflation, and exorbitantly raised interest payments. The same Report pointed out that on one hand interest payments have increased substantially over the last few years, while dwindling global growth prospects will in turn negatively impact revenue collection. It indicated in this regard: 'In developing countries, external sovereign debt stocks reached $11.4 trillion in 2023. While the pace of debt accumulation has slowed in recent years and is significantly below pre-pandemic levels, external debt servicing costs have surged, more than doubling since 2014, with developing countries paying $1.7 trillion in 2023 alone. Least developed countries (LDCs) are particularly hard-hit, with the ratio of public and publicly guaranteed (PPG) external debt service to government revenue nearly doubling to 14.6% between 2013 and 2023. …The rising cost of debt servicing is preventing many developing countries from rolling over existing debt and investing in critical sectors. …In 2024, the number of people living in countries that spend more on interest payments than on critical social services such as health and education increased by 100 million, to 3.4 billion people. A staggering 5.6 billion people live in countries which experienced deteriorating public sector debt dynamics between 2017 and 2023, a period where increases in interest costs outpaced growth in government revenues in over two-thirds of developing countries. …Looking ahead, the situation is likely to deteriorate further. Global growth is slowing, with projections for 2025 revised downward to 2.3–2.8%, compared to earlier estimates of 2.7–3.3%. The slowdown is expected to affect both developed and developing economies, which will undermine government revenues.' That called for a radical agenda from both the expert group, and in the 'Serville Commitment', the 'draft resolution submitted by the President of the Conference'. Although there are important areas of focus with regard to provision of sustainable finance, and resolution of debt crisis, the document does not contain neither concrete steps – like provision of climate change related SDRs to climate change challenged developing countries during the medium-term' – nor is there much earned naming and shaming of practice of over-board austerity policies. Such a drastic approach was warranted given that the development finance conference took place after long intervals, that the conference holds immense importance given the long preparatory work that goes through – the organizational work under the 'Intergovernmental Preparatory Committee', which included regional groups – where Pakistan also serves as vice-chair for 'Asia-Pacific States' region – held its first meeting around a year ago during July 22-26, 2024 in Addis Ababa – and that during this ten years not only has climate change crisis unfolded at a fast pace, global debt has risen significantly, while absolute poverty has also started to increase at the back of years of decline. Moreover, it is strange that there is apparently no policy briefing, on media or in the form of published report provided by the related policymakers heading these groups, or more generally from the Ministry of Finance, Ministry of Foreign Affairs, and most likely related Ministry of Planning, Development& Special Initiatives, and Ministry of Climate Change and Environmental Coordination – since the scope of FFD4 included policy emphasis from Foreign Affairs offices of participating countries, as pointed out in one of the FFD4 online placed document 'Financing for development: a primer' in the following words: 'The FFD process brings together finance, foreign affairs, development and other line ministries, helping to strengthen coherence on financing for development' –on the scope of the FFD4, at least not with any fanfare, if at all any much-needed briefing was provided. Such dissemination was needed for providing information, especially highlighting the specific prospects of this conference for Pakistan, and generating a discussion process among the larger civil society, and academics, and to use useful feedback in the policy formulation process. At least, it is hoped that the discussions at FFD4 will be better communicated by policy circles, and by the media. Nonetheless, some of the important proposed commitments of the 'draft resolution' included with regard to 'official development assistance', for instance, that 'We acknowledge the urgency of underlying sustained efforts to reverse declining trends in official development assistance and urge developed countries to scale up and fulfill their respective official development assistance commitments, including the long-standing commitment by most developed countries to achieve the targets of 0.7 per cent of gross national income for official development assistance to the least developed countries.' Moreover, among proposed commitments with regard to augmenting 'global economic governance' included, for instance, that 'We encourage the International Monetary Fund Board of Governors to explore further quota share realignment to enhance developing countries' voice and better reflect members' relative position in world economy, while protecting the shares of the poorest members, under the seventeenth General Review of Quotas.' The 'draft resolution' proposed enhancing the role of SDRs, both through increasing the scope of the re-channeling effort, where it proposed the following: 'We encourage additional countries to join the voluntary special drawing rights rechanneling effort, and call upon countries to in a position to do so to voluntarily rechannel at least half of their special drawing rights to developing countries, including through multilateral development banks…' It was also proposed, among other recommendations that 'We encourage the [International Monetary] Fund to continue to review the role of special drawing rights and their place in international monetary system…' (Concluded) Copyright Business Recorder, 2025
Business Recorder
04-07-2025
- Business
- Business Recorder
Aurangzeb advances strategic partnerships on sidelines of FFD4
ISLAMABAD: Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb held a series of high-level bilateral meetings and strategic engagements on the sidelines of the Fourth International Conference on Financing for Development (FFD4), currently under way in Seville, Spain. These meetings were aimed at fostering deeper strategic cooperation with partner countries and institutions across areas such as development finance, trade, climate resilience, and institutional capacity-building, according to press release issued by the Finance Ministry here. The Minister is representing Pakistan at FFD4, as well as in various side events, policy dialogues, and multi-stakeholder round-table discussions. Aurangzeb urges global push to revive development cooperation at FfD4 As part of his bilateral meetings, the minister met with Eelco Heinen, Minister of Finance of the Netherlands, for a detailed bilateral exchange. The meeting focused on further strengthening the long-standing and cordial ties between the two countries, particularly in the domains of trade, development cooperation, climate resilience, and institutional capacity-building. Both sides shared perspectives on enhancing economic engagement, technical collaboration, and the potential for deepening partnerships in areas such as blended finance, climate finance, and digital transformation. The Pakistani side expressed keen interest in leveraging Dutch expertise in agri-tech, water management, and the digitization of public services. Aurangzeb appreciated the Netherlands' continued technical and financial support in diverse sectors, including public financial management, SME development, renewable energy, and climate-smart agriculture. The Dutch Finance Minister reaffirmed his country's support for Pakistan's structural reform agenda and emphasized the importance of policy continuity, transparency, and facilitation of investment flows. Finance Minister Senator Muhammad Aurangzeb also held a detailed meeting with Axel van Trotsenburg, Senior Managing Director of the World Bank, on the sidelines of the Fourth International Conference on Financing for Development. The Minister appreciated the World Bank's continued support for Pakistan's development agenda and shared updates on the successful review of the IMF EFF programme and ongoing reforms under the Resilience and Sustainability Facility (RSF). He also highlighted the launch of Pakistan's National Green Taxonomy, developed with World Bank support, which aims at guiding sustainable investments and is expected to be approved soon. The minister welcomed the World Bank's endorsement of the new 10-year Country Partnership Framework (CPF 2026–2035), which focuses on key areas including child stunting, learning poverty, climate resilience, fiscal space, decarbonization, and private investment. He reaffirmed Pakistan's commitment to closely working with the Bank to deliver on these priorities and achieve lasting development impact. In a separate meeting, he held in-depth discussions with Alvaro Lario, President of the International Fund for Agricultural Development (IFAD), a specialized UN agency focused on rural development and food system transformation. The two sides reviewed the long-standing collaboration between Pakistan and IFAD, which has seen the implementation of 29 projects to date, benefitting approximately 2.8 million rural households. The Minister also acknowledged IFAD's ongoing support through six active projects in Pakistan. The meeting covered a wide range of IFAD-supported initiatives in Pakistan, including policy support, vocational training, community infrastructure, access to finance, climate-smart agriculture, value chain development, and resilience against climate shocks. The Minister expressed Pakistan's appreciation for IFAD's efforts in supporting poverty reduction and sustainable rural development. Additionally, the minister met with John W H Denton AO, Secretary-General of the International Chamber of Commerce (ICC). The two sides discussed avenues for enhanced cooperation in trade facilitation, SME development, investment promotion, and the role of the ICC in supporting Pakistan's economic transformation. Particular emphasis was placed on private sector engagement, international best practices, and institutional capacity building to unlock new opportunities for sustainable growth and inclusive development in Pakistan. These bilateral interactions reflect Pakistan's commitment to expanding international partnerships, promoting development finance, and advancing its economic reform and resilience agenda in alignment with global sustainable development goals, the statement added.
Scoop
03-07-2025
- Politics
- Scoop
The Sevilla Commitment: A Vital Step To Rebuild Trust In Global Cooperation
3 July 2025 Activists, many from the Global South, attending the talks in Spain, are calling for greater leadership and commitment from wealthier nations to help address long-standing structural inequalities. The 4th International Conference on Financing for Development (FFD4) carries strong symbolic weight, reflected in the agreed priorities of the Sevilla Commitment. However, organizations warn that there is still a long way to go before promises translate into tangible action. Good timing That is the message from Paula Sevilla, a representative of the International Institute for Environment and Development (IIED) – a London-based research centre – who has worked for decades on sustainability and climate justice in Latin America, Africa, and Asia. 'This summit has come at a crucial time to try to restore faith in international cooperation, especially after the pandemic, which exposed a lack of global solidarity,' she stated. One of IIED's main goals in Sevilla has been to ensure that the announced financial commitments actually reach local communities at the forefront of the climate crisis. To that end, the organization emphasises the need to address issues such as external debt – draining public budgets – and to ensure innovative mechanisms like blended finance, while directing resources to those who need them most, who are often on the frontlines of finding solutions. ' We're seeing countries spend more on debt payments than on healthcare or education, while inequalities are deepening,' the expert warned, speaking shortly after a respectful but forceful protest inside the conference centre. A place to call home Housing solutions linked to sustainable development are notably absent from the summit's final document. 'It's regrettable that it's not even mentioned, at a time when we are facing a global cost-of-living crisis – not only in the Global South but also here in Spain. Housing is a source of anguish and distrust among citizens, and it has been completely ignored,' Ms. Sevilla said. Despite this, her organization is working to leverage the Sevilla outcome to find ways to channel funding into providing more affordable homes. Commenting on the initiative led by Spain and Brazil to work towards fair taxation and push back against tax avoidance by the world's richest – promoting more transparency and accountability – the IIED representative said it could be a useful path toward correcting structural inequalities. Tax for development ' We need leadership from the Global North, where many of the world's major tax-avoiding corporations are based. Without their commitment, we won't move forward,' she stated. She also criticized the absence of the United States from the summit – not only as a diplomatic setback but also as a worrying precedent following the dismantling of its international development agency, USAID. 'We're talking about people counting their pills to figure out how many days of life they have left. This is dramatic,' she emphasised. With just five years remaining to meet the Sustainable Development Goals, Ms. Sevilla warned that time is running out – and that the Sevilla Commitment will be meaningless without real change. ' We need political leadership, a will to cooperate, and a commitment to protect democratic space. In the end, it's organized people who keep hope alive and hold leaders accountable,' Ms. Sevilla concluded. Concerns for the poorest Meanwhile, the UN Capital Development Fund – a hybrid development and finance organization within the UN system – warned against leaving the world's poorest behind. 'At FFD4, we've seen exciting coalitions around substantive solutions using blended finance. And while they are significant, it's important that we guard against a two-tier outcome that leaves the hundreds of millions of people who are living in extreme poverty out of the equation,' said Pradeep Kurukulasuriya, Executive Secretary of UNCDF, which is mandated to unlock finance for the most underserved markets. ' We need private sector capital to flow, not only in middle income countries and the rising stars of the Least Developed Countries that are preparing for graduation. But also to countries and communities in fragile, vulnerable and crisis situations. UNCDF, working with partners across the UN family, has the capabilities to do just that.' UNCDF works in partnership with international organizations and UN entities to deliver blended finance solutions – including concessional loans, grants and guarantees – in any sector, to de-risk markets and drive sustainable economic growth. The Sevilla Commitment in brief: The Sevilla Commitment sets out a new global roadmap to raise the trillions of dollars needed each year to achieve sustainable development, building on previous international agreements It calls for fairer tax systems, cracking down on tax evasion and illicit financial flows, and strengthening public development banks to support national priorities The agreement highlights the need for new tools to ease debt pressures on vulnerable countries, including debt-swap schemes, options to pause payments during crises, and better transparency Countries committed to boosting the capacity of multilateral development banks, increasing the use of special drawing rights, and attracting more private investment to support development It also aims to make the global financial system more inclusive and accountable, with improved coordination, stronger data systems, and broader participation from civil society and others The Commitment launches the Sevilla Platform for Action, which includes over 130 initiatives already underway to turn the pledges into real-world results.
