Finance Minister Nirmala Sitharaman is scheduled to participate in the Summit for the New Global Financing Pact in Paris, which will take place on Thursday and Friday. The summit aims to explore various approaches to strengthen financial cooperation with countries in the Global South. The primary objectives of the summit include creating fiscal room, promoting the development of the private sector, encouraging investments in green infrastructure, and generating innovative financing solutions for nations vulnerable to the effects of climate change.
As stated by the finance ministry, during her official visit, the Union Finance Minister will engage in both multilateral and bilateral discussions with her counterparts. The two-day summit will convene heads of state and government, ministers, leaders of prominent international organizations, representatives from global financial institutions, and delegates from the private sector and civil society.
UN Secretary-General António Guterres recently emphasized that the current global financial system, responsible for managing approximately $300 trillion in financial assets, is inadequate for its intended purpose. He noted that the ongoing multitude of crises disproportionately affects developing countries, primarily due to an unfair financial system that is prone to short-term thinking and crisis-driven responses, further exacerbating existing inequalities.
The aim of the summit is to address the intertwined challenges of climate change, the protection of biodiversity, and the fight against inequality all with the ultimate goal of achieving the Sustainable Development Goals (SDGs).