New York, 20 September 2023 (TDI): At the United Nations (UN) SDG Summit 2023, Pakistan presented the Integrated SDG insights report. The Report highlights SDG trends and national priorities.
Pakistan’s Integrated SDG Insights Report will play a pivotal role in guiding discussions and actions towards sustainable development.
This comprehensive report serves as a critical roadmap, ensuring that Pakistan remains committed to its SDG objectives and continues its journey toward a brighter, more inclusive future.
Despite Pakistan’s dedication to improving well-being through SDGs, challenges like the 2022-2023 floods and substantial debt hinder progress.
In SDG Insight Report 2023, Pakistan’s economy is in a mitigation phase but is poised to transition to higher growth in 2024-2025, surpassing the global rate.
This growth is expected to positively affect poverty reduction and reduce carbon emissions intensity, driven by reduced fossil fuel usage and land-use changes.
Although economic growth is vital for SDG achievement, some nations seek to shift away from it as the sole measure of progress. In the short term, development supports SDGs, but the long-term goal is to reshape the growth paradigm through the SDGs.
Finance and Stimulus
Pakistan’s 2023 government debt of 73.6% of GDP surpasses the EMMIE average by 4.8 percentage points. EMMIE average is a term or metric used to represent the average government debt as a percentage of GDP for a group of countries or entities.
Additionally, at 12.2% of GDP, its revenue collection is less than half of the EMMIE average of 26%.
Pakistan’s debt servicing at 46.7% of revenue far surpasses the EMMIE group’s 12.3%, with a credit rating deemed ‘extremely speculative,’ well below the EMMIE average of ‘non-investment grade speculative.
Countries like Pakistan grapple with diminished fiscal capacity, mounting debt, and credit rating downgrades, which impede SDG advancements. Fiscal and financial constraints often hinder or reverse SDG achievements.
In light of Pakistan’s anticipated fiscal challenges, various funding avenues for addressing identified interlinkages emerge.
These options encompass tax and revenue reform, sustainable debt management, climate finance, and fostering an SDG-aligned business climate, investment, and insurance environment.
Furthermore, Pakistan can explore opportunities in the international capital market, and encourage non-resident investment in government securities to bolster its financial resources for tackling these interrelated challenges effectively.