Sustainable Development through Green Financing

Pakistan is the most populous country and ranked at 5th globally. Pakistan has faced
multiple economic and environmental challenges over the years. Economic growth
remained slow over the last two decades. While environmental cost further jeopardizing
sustainable economic growth in future. The United Nations Development Program
(UNDP) estimated that due to extreme weather events from 1999 to 2018 Pakistan has
lost $3.8 billion1.
Pakistan faces several environmental challenges including inefficient use of resources,
the pace of development has put huge pressure on environmental resources and their
carrying capacity, resulting in degradation of natural resources, and increasing pollution.
The major environmental issues in Pakistan include climate change, soil erosion,
natural disaster, air, water, and noise pollution, desertification, pesticide misuse, and
floods.
Though Pakistan‟s contribution to global CO2 emission is minimal, the country is hugely
affected by climate-change-associated disasters and extreme weather events including
floods, droughts, heat waves, etc. Pakistan is categorized as the 8th most vulnerable
country in the world to climate risk, therefore Pakistan‟s growth strategy must be
climate centered for long-term sustainability, mitigating effects of climate change, and
adapting to the changing environment.
Government of Pakistan has taken several efforts toward the betterment of and has
achieved “on track status” vis-à-vis SDG 13 on Climate Change. Government of
Pakistan has also ratified the Paris Agreement in 2016, which seeks to limit temperature
rise to well below 2⁰C above preindustrial levels while pursuing efforts to limit the
increase to 1.5⁰C. Alongside, Pakistan has submitted the first Intended Nationally
Determined Contribution (INDC) to achieve stabilization of Greenhouse Gases (GHG).
The government has introduced the “Green Stimulus” initiative to expand the number of
protected areas to 398. Prime Minister of Pakistan is committed to replaced 60 percent
of energy with renewable sources and 30 percent of all vehicles on electricity by 2030.
World wide fiscal measures are being used to addres the challenges of climate change.
Several countries are producing green budget which classify expenditures and explicitly
mention the projects/allocations that address climate change issues including project
that target phasing out coal and fossil fuel, investment in renewable energy, forestation
and improving transportation system to reduce green house gases.
The practice of analyzing federal budget document from green budgeting perspective
could be continued and improved on yearly basis. It is important to check on annual
basis whether political pronouncments are realized through fiscal measures.
For examples, recently government of Pakistan have initiated various afforestation
projects for biodiversity and habitat conservation. While only Ten Billion Tree Tsunami
will conserve about 650,042 hectares (ha) of forest areas across the country2. Earlier,
Pakistan has only 230 protected areas (BAP, 1999) for biodiversity protection and
habitat conservation with the “Green Stimulus” initiative number of protected areas will increase to 398