Pakistan Unveils New Framework for Sustainable Development

The framework aims at devising a strategy to channel funds towards poverty alleviation, health, education, and climate resilience.

Fri Apr 11 2025
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ISLAMABAD: Pakistan introduced on Friday the draft Social Impact Financing (SIF) Framework, providing a strategic vision to unlock innovative financial instruments that are aligned with national priorities and focused on achieving measurable, sustainable, and impactful development outcomes, particularly for marginalised and vulnerable communities.

It aims to orient public and private capital flows towards real-world improvements in key areas such as education, health, poverty alleviation, population stabilisation, and climate resilience.

SIF was introduced by Finance Minister Muhammad Aurangzeb while chairing a meeting on Social Impact Financing Framework to Drive Impactful and Sustainable Development in Pakistan.

The prime minister constituted the committee on Social Impact Financing (SIF), with the finance minister as its chairman.

The meeting was attended by senior representatives from key government ministries and departments, the State Bank of Pakistan, Securities and Exchange Commission of Pakistan, and the country’s leading microfinance institutions, philanthropic organisations, and social impact partners.

The session focused on the government’s ongoing effort to design a robust, long-term social impact financing solution tailored to Pakistan’s pressing development and environmental challenges.

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Participants engaged in comprehensive discussions on the structure and design of the SIF Framework, including its priority pillars, funding mechanisms, risk mitigation tools, and governance roadmap.

They also explored funding sources, implementation workstreams, and the role of performance-based instruments such as impact bonds, performance-linked grants, and guarantees.

A recurring theme throughout the meeting was the necessity of linking funding to outcomes rather than inputs, ensuring accountability and transparency in resource allocation and service delivery.

The finance minister stressed the importance of developing a sound policy framework rooted in strong public-private partnerships, emphasizing that sustainable and scalable interventions are essential for creating impact and shifting from action-oriented to result-oriented approaches to address Pakistan’s most pressing development challenges.

He highlighted poverty alleviation, health and wellbeing, education and human capital, population stabilisation, and climate resilience as key priority areas requiring focused attention.

The finance minister underlined the imperative of tracking and tracing the development impact of these interventions, particularly in alignment with national economic priorities and Pakistan’s commitments to the Sustainable Development Goals (SDGs).

Stressing the urgency of reform, he called for swift action in finalising the framework and moving towards its implementation.

The meeting concluded with agreement on several next steps, including the finalisation of the draft SIF Framework by next week, formation of task forces aligned with proposed fund activities, and a comprehensive update to the committee in early May.

The update will include proposals for an actionable fund structure, governance model, and priority impact-focused initiatives, ensuring that Pakistan is well-positioned to attract innovative financing for inclusive and sustainable development.

 

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