Pakistan calls for capacity building support to developing nations for their economic growth

UNITED NATIONS, Feb 15 (APP): Pakistan has underscored the need for capacity-building support to developing countries 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 (UNGA) and the Inter-Parliamentary Union (IPU), Senator Farooq Naek also said private sector financing can play a key role in bridging the SDG (Sustainable Development Goals) financing gap,
He said that governments can leverage blended finance mechanisms combining public funds with private capital to support 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 six-member parliamentary delegation to the two-day IPU Hearing, was delivering his remarks at a session devoted
to “Private investment for the SDGs (Sustainable Development Goals (SDGs): The role of private long-term investment and of international finance”, at the UN headquarters on Friday.
The Pakistani delegate said that incentivizing the private sector to invest in developing countries while mitigating its potential negative consequences, is a delicate balancing act.
“On the one hand, private sector investment drives economic growth, innovation, and job creation. On the other hand, unchecked or poorly managed private investment can lead to environmental degradation, social inequalities, and economic volatility,” he said.
In order to incentivize private sector investment, Senator Farooq outlined several policy actions such as crafting clear, consistent, predictable and enforceable laws that outline the rules of investment; offering targeted tax breaks or subsidies to promote private investment in sectors that align with national development goals; investing in public-private partnerships (PPPs) and incentivising adherence to environmental, social and governance standards.
He urged the governments to leverage blended finance mechanisms that combine public funds with private capital to support development projects that have a strong social or environmental impact but are perceived as too risky for private investors.
“In order to foster innovation and job creation, they can support SMEs (small and medium-sized enterprises) through low-interest loans and guarantees,” he added.