Climate Finance Set for Overhaul with New Bureau

APP

Islamabad: The government of Pakistan has established the Sustainable Finance Bureau (SFB) to reorient the Public Sector Development Programme (PSDP) toward climate-conscious investments, with 20 percent of new PSDP schemes in FY2023-24 earmarked as green, totaling Rs 925 billion.

According to the World Bank’s 2023 report, Pakistan requires $348 billion by 2030 to achieve systemic resilience. The SFB initiative is expected to attract concessional climate funds, strengthening Pakistan’s capacity to meet its climate and sustainability targets.

The Ministry of Planning, Development, and Special Initiatives (MOPDSI) highlighted that this move is vital for climate-proofing Pakistan’s development trajectory and safeguarding citizens’ well-being. A Climate Responsive Public Investment Framework (CRPIF) will now integrate climate considerations into the planning and execution of all development projects.

Aligned with the National Adaptation Plan (NAP) and Nationally Determined Contributions (NDCs), the government aims to ensure climate-smart policies guide national development. The Green Growth Framework will support emerging green value chains and sustainable economic activities, following international best practices in green finance and technology.

Additionally, the ministry unveiled a National Climate Finance Strategy (NCFS) under the National Climate Change Policy (NCCP) to identify sectoral priorities and scale climate financing. The strategy emphasizes private sector engagement, international climate funds, and carbon markets, reinforcing Pakistan’s commitment to the Paris Agreement.

Pakistan is among the countries most affected by climate hazards, including floods, droughts, heatwaves, and cyclones. The devastating 2022 floods affected 33 million people and caused economic losses of $30 billion, prompting the government to adopt the 4RF framework to coordinate climate resilience efforts across federal and provincial governments, donors, NGOs, academia, and the private sector.

The SFB and related strategies signal Pakistan’s commitment to environmentally conscious and economically sustainable development, marking a new era in climate-responsive growth.