ISLAMABAD, Oct 22 (ABC): China’s growing contributions to multilateral development institutions and climate financing mechanisms are strengthening international development cooperation. The expansion could create new opportunities for developing economies to access infrastructure funding, affordable loans and investment in climate-resilient projects.
A study released earlier this month by the Washington-based Center for Global Development (CGD) found that China’s annual contributions to development-oriented multilateral institutions had increased more than tenfold since 2010, exceeding $3 billion in 2024.
The study also estimated that China’s attributable multilateral climate finance reached approximately $5.3 billion in 2025. This reflects the country’s expanding participation in international efforts to support climate action and sustainable development.
These developments come as developing economies face growing infrastructure needs, increasing climate risks and limited financial resources for large-scale projects.
Abdul Jabbar, a climate expert at the Climate Resourcing Coordination Center, told Wealth Pakistan that China’s growing participation in multilateral climate finance could help address funding shortages in developing countries.
He said countries vulnerable to climate change often lacked sufficient resources to invest in adaptation measures and cleaner energy systems.
According to Jabbar, greater contributions by major economies could increase the availability of long-term financing. Such support could also help developing countries implement projects that would otherwise be difficult to finance.
“Countries such as Pakistan require long-term and affordable capital for flood protection, water conservation, renewable energy, resilient transport infrastructure and climate-smart agriculture. Greater participation by major economies in multilateral climate financing mechanisms could expand the resources available for these investments and encourage additional funding from other development partners,” he said.
Jabbar explained that climate financing was becoming increasingly important for protecting infrastructure, agricultural production and economic activity from extreme weather.
Multilateral financing arrangements could support climate adaptation, renewable energy and sustainable infrastructure. These mechanisms are particularly important where domestic resources cannot meet growing development requirements.
Pakistan needs stronger project preparation to attract climate finance
China’s expanding financial engagement also highlights the importance of international cooperation in addressing development challenges.
Multilateral development banks and other international financial institutions provide funding for infrastructure, economic development and projects with long-term social and environmental benefits.
Greater financial contributions could strengthen these institutions’ capacity to support developing economies, particularly those facing difficulties in obtaining affordable commercial financing.
However, Jabbar stressed that access to international climate finance depended on more than the availability of funding.
He said developing countries needed credible investment proposals, sound technical assessments and realistic financial plans. Effective implementation arrangements and environmental safeguards were equally important.
“Pakistan cannot rely solely on its vulnerability to climate change as a justification for attracting international financing. It needs technically sound, financially credible and implementation-ready projects that clearly demonstrate how investments will reduce climate risks or support emissions reduction,” he cautioned.
Jabbar said Pakistan could strengthen cooperation with Chinese financial institutions and multilateral development banks to improve its capacity for preparing and implementing projects.
Such partnerships could provide technical expertise, improve project design and strengthen the financial viability of investments in renewable energy, water management and climate-resilient infrastructure.
He also called for stronger monitoring systems to ensure that climate financing commitments translated into completed projects with measurable benefits.
“Transparent reporting, credible project evaluation and effective implementation will be essential if Pakistan wants to build investor confidence and secure a larger share of international climate finance,” he said.
Multilateral financing could complement CPEC cooperation
China’s expanding role in multilateral development financing could also benefit countries seeking to combine infrastructure development with climate resilience and economic growth.
For Pakistan, which maintains extensive economic cooperation with China under the China-Pakistan Economic Corridor (CPEC), the development could create additional opportunities for investment partnerships.
Dr Khalid Waleed, Research Fellow at the Sustainable Development Policy Institute (SDPI), said China had already played an important role in supporting Pakistan’s infrastructure development and economic connectivity.
Talking to Wealth Pakistan, he highlighted the contribution of CPEC to energy and transport infrastructure.
Waleed said China’s growing engagement with multilateral development institutions could add another dimension to bilateral economic cooperation.
Through these institutions, Pakistan could explore financing opportunities for projects that support economic development, climate resilience and environmental sustainability.
“Pakistan has already benefited from Chinese cooperation in energy and transport infrastructure. The next stage should focus on attracting financing for projects that improve economic productivity, strengthen climate resilience and create sustainable development opportunities. Multilateral partnerships can help make these investments more financially viable and institutionally sustainable,” he said.
He emphasised that Pakistan needed to align its development priorities with emerging opportunities in green financing, regional connectivity and sustainable industrial development.
According to Waleed, the country should identify projects that address immediate infrastructure requirements while contributing to long-term economic and environmental objectives.
Investment in climate-resilient infrastructure, cleaner energy systems and sustainable industries could improve economic productivity while reducing environmental risks, he added.
Stronger institutions essential for securing development funding
Multilateral development institutions offer developing countries access not only to financing but also to technical expertise, institutional support and internationally recognised project standards.
Experts believe Pakistan could benefit from these opportunities by improving coordination among government departments, development partners and project implementation agencies.
They stressed that access to international financing depended on a country’s ability to develop bankable projects, meet financing requirements and demonstrate effective use of resources.
Stronger project preparation, transparent implementation and credible evaluation could help Pakistan attract greater investment in priority sectors.
Meanwhile, China’s increasing contributions to multilateral development and climate financing could expand opportunities for developing economies seeking affordable capital and sustainable investment.
For Pakistan, these developments could complement existing cooperation with China and support new partnerships in climate resilience, infrastructure modernisation and higher-value economic activities.
Experts believe that translating these opportunities into tangible results will require Pakistan to strengthen institutional capacity, improve project planning and align investment decisions with long-term economic and environmental priorities.
