Islamabad:Climate risks are increasingly undermining economic growth, fiscal stability, food security and development gains and thus, the government needs to integrate climate change considerations into Pakistan's economic and budgetary planning.
This was the consensus among policy experts and parliamentarians at a parliamentary consultation on ‘Mainstreaming Climate Considerations in Pakistan's Economic and Budgetary Planning’, jointly organized by Sustainable Development Policy Institute (SDPI) and the Embassy of Denmark here on Monday.
Danish Ambassador to Pakistan, Maja Mortensen, said climate and environmental concerns could no longer be addressed in isolation and must become part of mainstream economic and political decision-making.
"The diagnosis of the problem already exists; the challenge now is how to translate it into policy action," she said, describing the consultation as timely in the wake of the federal budget process.
She emphasized that climate resilience and economic development are complementary rather than competing objectives. She also offered Denish experience and technical cooperation in integrating climate priorities into development planning.
SDPI Executive Director, Dr Abid Qaiyum Suleri, said climate considerations must be reflected in both federal and provincial finance bills, as Pakistan's budget framework is being shaped under the International Monetary Fund's Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF) programmes.
The IMF-supported reforms had encouraged greater allocations for disaster risk reduction, water conservation and renewable energy projects, he said, adding that some of these commitments had already been reflected in federal and provincial budgets. He cited revised water tariffs in the Punjab, increased allocations for disaster preparedness, enhanced climate financing and plans for a pilot project linking grid-level battery storage with wind energy generation in Jhimpir.
Dr Suleri, however, warned that climate finance was shrinking globally and nationally despite rising climate-related challenges. He also stressed the need for stronger coordination between the federation and provinces to meet climate commitments.
Pakistan People’s Party (PPP) MNA and Member NA Standing Committee on Economic Affairs, Mirza Ikhtiar Baig said Pakistan remained among the countries most affected by climate change despite contributing minimally to global emissions. Referring to the aftermath of the 2022 flood, he regretted that much of the international financial support pledged for reconstruction had not been materialized so far.
He noted that Pakistan had secured access to climate-related financing under the IMF's Resilience and Sustainability Facility. He argued that revenues generated through carbon-related levies and petroleum levies reflected the contribution of ordinary citizens toward climate mitigation efforts. He also welcomed the reduction in taxation on solar panels following political consultations.
PPP Member of National Assembly, Asad Alam Niazi, stressed that climate change had emerged as a national security challenge and there is still inadequate public awareness about its economic and social consequences.
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