Private sector engagement

PAKISTAN’S battle against climate change cannot be fought without support from the private sector. The private sector and the government in Pakistan have dramatically different ways of working. Yet, they, like two sides of the same coin, coexist and can create an ecosystem for each other’s climate action. Pakistan’s financial needs for climate action are very high. Projected climate disasters, environmental degradation, and air pollution can cause GDP to fall by at least seven per cent. For this, Pakistan will need $152 billion for adaptation and $196bn for decarbonisation by 2030, as projected by the Climate Change and Development Report of the World Bank. None of the growth rate projections can promise this. The new $7bn Extended Fund Facility with the IMF aims to support Pakistan’s efforts in achieving macroeconomic stability. It does not set any targets for economic growth rate nor for investments in climate resilience.