Islamabad, April 9, 2025 — In a high-level dialogue on Wednesday, stakeholders from Pakistan’s public and private sectors, civil society, and international partners stressed that adopting a green growth strategy is no longer optional—it is a critical path for survival and economic competitiveness in an era of climate uncertainty and rising global carbon taxes.
The event, titled “Greening the Macro-Fiscal Economic Regime for Low Carbon Development,” was organized jointly by the Planning Commission of Pakistan, the Pakistan-German Climate and Energy Partnership (PGCEP), and the Sustainable Development Policy Institute (SDPI). This consultation, part of a broader pre-budget series, aimed to integrate climate priorities into Pakistan’s fiscal planning.
In her keynote address, Nadia Rehman, Member for Food Security and Climate Change at the Planning Commission, highlighted that green growth is central to the Uraan Pakistan initiative and its 5Es Framework—Exports, E-commerce, Environment, Energy, and Equity. She emphasized that the Planning Commission is working with ministries and provinces to develop performance agreements and sector-specific plans to anchor climate action across government functions.
Rehman noted that Pakistan’s economic recovery must be closely tied to green growth, particularly through access to climate finance, which can reduce borrowing costs and support sustainable infrastructure. She called climate finance “an economic imperative,” not just an environmental choice.
“Pakistan must align with global net-zero targets,” she said, adding that carbon-intensive exports may soon face penalties under upcoming carbon border taxes like the EU’s CBAM. She also outlined reforms like climate screening of public projects, collaboration with financial regulators, and blended finance tools to encourage private sector participation in green investment.
Wolfgang Hesse, Coordinator for Energy, Climate Change, and Just Transition at GIZ Pakistan, emphasized Germany’s support for Pakistan’s energy transition, including decarbonization, digital power distribution, and national climate risk assessments—all key pillars of sustainable green growth.
Shah Jahan Mirza of PPIB highlighted infrastructure challenges, noting that despite CPEC adding 13,000MW to capacity, SEZs remain underutilized, and emissions tracking is weak. He urged stronger policy coordination to merge energy planning with industrial and climate goals.
Dr. Khalid Waleed of SDPI warned that Pakistan’s heavy dependence on fossil fuels could damage its export standing under the EU’s CBAM. He urged swift action for green growth, including early retirement of fossil plants and integration of renewables.
Omer Malik, CEO of Shams Power, and Omer Haroon Malik of CPPA-G called for regulatory reforms and modern technology to decarbonize industry and stabilize the grid. NEPRA’s Gul Hassan Bhutto stressed that the Competitive Trading Bilateral Contract Market (CTBCM) could open a new chapter for green electricity trade in Pakistan.
Hassan Shafqaat of Pakistan Textile Council pointed to a lack of skills and incentives for SMEs to adopt green technologies. He advocated for green budget tagging and workforce development.
Aisha Khan of the Civil Society Coalition for Climate Change summed it up: “Our floods, our power outages, our declining exports — they all reflect a broken system. It’s time we commit to a serious green growth agenda.”