United Nations (TDI): Pakistan has emphasized the need for capacity-building support to developing nations that helps communities and organizations develop the skills and resources they need to adapt and thrive.
Speaking at the Annual Parliamentary Hearing, a joint initiative between the President of the United Nations General Assembly and the Inter-Parliamentary Union, Senator Farooq Naek also said private sector financing can play vital role in bridging the Sustainable Development Goals (SDGs) financing gap.
He said that governments can leverage blended finance mechanisms combining public funds with private capital to assist development projects that have a strong social or environmental impact but are perceived as too risky for private investors.
Senator Naek, who is heading a 6-member parliamentary delegation to the 2-day IPU Hearing, was delivering his remarks at a session devoted to “Private investment for the SDGs: The role of private long-term investment and of international finance”, at the UN headquarters on Friday.
He said that incentivizing the private sector to invest in developing nations while mitigating its potential negative consequences, is a delicate balancing act.
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“On one side, private sector investment drives economic development, innovation, and job creation. On the other hand, unchecked or poorly managed private investment can result in environmental degradation, social inequalities, and economic volatility,” he said.
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In order to incentivize private sector investment, Senator Farooq suggested several policy actions like crafting clear, consistent, predictable and enforceable laws that outline the rules of investment; offering targeted tax breaks or subsidies to encourage private investment in sectors that align with national development goals; investing in public-private partnerships and incentivising adherence to environmental, social and governance standards.
