• Shezra tells pre-budget dialogue that 30pc of all public development projects to undergo climate assessment
• MQM-P MNA reveals 4m people in Karachi live in non-resilient housing
• Sanaullah Baloch argues ongoing insurgency in Balochistan rooted in unjust distribution of resources
ISLAMABAD: Dr Shezra Mansab Ali Khan Kharal, the minister of state for Climate Change and Environmental Coordination, on Tuesday announced the country’s first climate-focused budget for the fiscal year 2025–26 under which 30 per cent of all public development projects would undergo a Climate Public Investment Management Assessment (CPIMA).
“It is a significant shift towards integrating climate considerations into national economic planning,” the minister said.
The announcement was made during the Pre-Budget Dialogue 2025, titled “Rethinking Economic Policy for a Just Energy Transition,” organised by the Sustainable Development Policy Institute (SDPI) in collaboration with the Policy Research Institute for Equitable Development (PRIED). The event brought together key policymakers, economists, parliamentarians, and energy experts to discuss aligning fiscal strategies with climate resilience and sustainability goals.
Dr Kharal highlighted the multifaceted challenges Pakistan faces, including increased vulnerability to climatic risks affecting agriculture, India’s suspension of the Indus Water Treaty exacerbating water scarcity, and the constraints imposed by the IMF’s austerity programme limiting development expenditures. She noted that the energy sector’s inefficiencies and circular debt continue to strain the national budget, necessitating a transition to sustainable energy solutions.
Malik Amin Aslam, former special assistant to the prime minister on climate change, highlighted that Pakistan cannot circumvent the impacts of climate change, which could force the country to spend 9pc of its GDP on resilience efforts. He advocated for the implementation of carbon taxes to ensure that revenues collected are invested in climate resilience initiatives.
MNA Arshad Abdullah Vohra of MQM-P emphasised that climate change and energy transition are two distinct subjects. He highlighted that energy and power are federal subjects, while climate change has become a provincial responsibility following the 18th Constitutional Amendment. Addressing urban resilience, he revealed that four million people in Karachi live in non-resilient housing, including 1 million registered slum dwellers.
Sanaullah Baloch, former senator and current member of the Balochistan Assembly, delivered a presentation on “Balochistan, Energy Justice, and Economic Development”. He argued that the ongoing insurgency and conflict in Balochistan are rooted in the unjust distribution of its resources.
He recalled that Pakistan was among only five countries in the world that discovered natural gas in 1955, and Balochistan’s gas contributed to $200 billion in value. He asserted that the industrial revolution across Pakistan was driven by Balochistan’s gas, likening energy to the bloodstream of a nation. He lamented the lack of energy access in Balochistan, which hampers development, with only 20pc grid access compared to Punjab’s 95pc, Sindh’s 85pc, and KP’s 80pc.
Barrister Danyal Chaudhary, Parliamentary Secretary for Information and Broadcasting described nursing crops under a scorching sun, students in Balochistan studying by candlelight, and mothers in Punjab praying for affordable electricity as vivid examples of how energy issues translate into dignity and survival.
Dr Abid Qaiyum Suleri, the executive director of SDPI, emphasised the economic imperatives driving the energy transition. He pointed out that rising fuel prices and the liberalisation of the second-hand automobile market could accelerate the adoption of hybrid and electric vehicles, thereby promoting energy efficiency and reducing dependence on fossil fuels.
Shahid Hafeez Kardar, former governor of the State Bank of Pakistan, stressed the need for economic policies that prioritise long-term sustainability over short-term stabilisation. He advocated for shifting from reactive subsidies to proactive investments.
Khalid Mansoor, senior fellow at the Pakistan Regional Economic Forum and former special assistant to the prime minister on CPEC affairs, highlighted the transformational phase of CPEC, focusing on energy transition, smart agriculture, value-added textiles, and digital transformation.
Dr. Sajid Amin Javed, deputy executive director of SDPI, pointed out that Pakistan’s economic policy has been primarily focused on stabilisation, often neglecting sustainability goals. He advocated for the imposition of carbon taxation and petroleum levies to achieve revenue targets while promoting green energy transition as a solution to macroeconomic problems.
Shah Jahan Mirza, managing director of the Private Power and Infrastructure Board (PPIB), noted that Pakistan has already achieved 47pc clean energy generation in its current energy mix, calling for encouraging local development of solar energy panels and equipment.
Dr Khaqqan Najeeb, senior economist, emphasised that energy issues in Pakistan are rooted in governance and management challenges rather than just energy costs or inefficiencies. He called for a unified and authoritative energy regulator.
Afia Malik, an economist, cautioned that petroleum levies directly impact the poor, suggesting that carbon taxes on emitting energy sources would transfer the burden to final consumers, including the middle class. Shiraz Shah, head of resilience, environment, and climate change at UNDP, underscored that energy transition is a governance issue requiring a multi-sectoral approach.
Published in Dawn, May 21st, 2025
