Climate change mitigation gets Rs2.78bn out of PSDP outlay

ISLAMABAD: Despite recurring climate-related disasters, the federal government has allocated just 0.22 percent of its total Public Sector Development Programme (PSDP) outlay—Rs2.78 billion out of Rs1,287 billion—for the Ministry of Climate Change and Environmental Coordination in fiscal year 2025–26, reflecting a Rs640 million cut compared to the revised allocation of Rs3.42 billion in the outgoing year.

According to official budget documents, the proposed climate development budget includes Rs2.73 billion in domestic funding and Rs50 million in foreign aid.

The reduced allocation comes at a time when Pakistan is experiencing more frequent urban flooding, extreme heatwaves, glacial lake outbursts, and rising pollution—phenomena that demand increased investment in climate resilience and preparedness.

The largest share of the funding, Rs2.25 billion, has been earmarked for the Green Pakistan Programme (Phase-I), down significantly from Rs3.29 billion in the outgoing year. This project, part of a broader afforestation and ecosystem restoration drive, remains a flagship initiative despite budgetary downsizing.

Another Rs325.26 million has been allocated for strengthening the technical capacity of the Ministry of Climate Change and Environmental Coordination, reflecting an emphasis on improving climate governance, planning, and institutional efficiency.

Other allocations include Rs83.39 million for the Pakistan Biosafety Clearing House for GMOs Regulation (Pak-BCH), and Rs25 million for capacity building on water quality monitoring and Sustainable Development Goal (SDG) 6.6.1 reporting.

Two new initiatives have also been introduced: Rs50 million for Green Skills and Green Entrepreneurship, and another Rs50 million for the formulation of a National Urban Strategy to address urban flooding, droughts, and climate-induced risks.

Notably, the Climate Resilient Urban Human Settlement Unit, which received Rs21.4 million in the current year, has not been allocated any funds for 2025–26. The omission raises concerns about the continuity of sustainable urban development programmes, especially in cities like Karachi, Lahore, and Peshawar, which are increasingly vulnerable to climate shocks.

With the total PSDP spending for 2025–26 set at Rs1,287 billion, the climate change portfolio remains underfunded relative to its critical importance.

Experts warn that reduced domestic climate investment could also undermine Pakistan’s ability to access international climate finance through mechanisms such as the Green Climate Fund and the Global Environment Facility.

Pakistan is globally recognised as one of the top 10 countries most vulnerable to climate change. Yet, the budget reduction signals a disconnect between policy declarations and fiscal priorities. Environmental advocates stress that climate adaptation is not a long-term concern but a present and urgent necessity.

As climate events continue to intensify—particularly across Sindh, Balochistan, and Khyber Pakhtunkhwa—the effectiveness of this limited budget will depend on how efficiently it is implemented, and whether the federal and provincial governments can coordinate efforts to protect lives, infrastructure, and ecosystems.