Pakistan’s approach to climate budgeting is evolving. It’s no longer just about how much money is allocated; it’s about whether the systems in place can truly withstand a changing climate. After the catastrophic floods of 2022, Pakistan implemented climate budget tagging—this means categorizing spending into areas like adaptation and mitigation. But the crucial question remains: is this funding really reaching those in need, or is it merely rebranding existing expenses?
Prior to 2023, climate finance in Pakistan was scattered and difficult to track across various sectors. The floods revealed not only a climate crisis but also serious flaws in budgeting and governance. Federal allocations for the Climate Change Division have been on the decline—from about Rs14 billion in 2021-22 to just Rs9.5 billion in 2023-24. This decline indicates that climate change is still not a priority.
To improve transparency, the government started tagging over 5,000 budget items related to climate. However, it’s essential to note that simply tagging expenditure does not guarantee real resilience. Funds can be allocated to infrastructure projects but may not effectively reduce vulnerability.
Looking at the provinces reveals a mixed picture. Punjab has made strides in climate budgeting, tagging about 3% of its budget for climate initiatives due to better documentation and strategic planning. It also allocated roughly Rs15 billion for environmental efforts in 2025-26. Yet, Punjab struggles with pollution and water depletion, raising doubts about whether tagged spending can lead to tangible improvements.
Sindh, on the other hand, shows a more concerning trend. Despite being highly vulnerable to climate change, its environmental budgets have historically been low. Over 16 years, it allocated Rs48.8 billion but only spent Rs20.2 billion—around 41%. This underutilization is alarming, especially after the devastation of the 2022 floods. For effective climate budgeting, Sindh needs to improve tracking and reporting on how funds are actually used at the local level.
In Khyber Pakhtunkhwa (KP), the challenges differ. The region’s varied landscape necessitates different budgeting strategies for forests, floods, and local needs. KP has attempted to move towards performance-based budgeting, but funding for local development remains inconsistent. Adapting to climate challenges requires that local areas receive adequate support.
Balochistan is arguably the most overlooked when it comes to climate finance. The province faces severe environmental issues yet struggles with budget execution, having utilized only 17% of its allocated environment budget in FY2024-25. It’s critical that Balochistan enhance its institutional capacity to manage and implement climate initiatives.
The core issue across Pakistan’s climate budgeting is that while the federal government is tagging expenses, true power for implementation lies with the provinces following the 18th Amendment. If tagging remains solely a federal initiative, it won’t yield real benefits at the local level.
To move forward, climate budgeting must be mandatory in all provinces, built on a common framework that accounts for unique vulnerabilities. Reforms should respect the Pakistan Climate Change Act of 2017 and ensure that funds, like those generated from levies on petroleum, are dedicated to real climate solutions—whether it be building clean energy infrastructure or enhancing resilience in communities.
Moreover, accountability is crucial. Every district should include climate risks in their development plans and track how funds are utilized. Performance-based financing should reward districts excelling in climate resilience, while those neglecting these responsibilities face penalties.
Adding to this, recent studies show that public awareness and community participation can enhance the effectiveness of climate finance. Engaging local communities in the budgeting process ensures their needs and challenges are addressed more directly.
In summary, Pakistan’s climate budgeting journey is about more than just numbers on a page. The true success will be measured by whether communities are better protected from floods, have access to clean water, and can live in healthier environments. It’s a challenge, but with focused efforts and genuine accountability, positive change is possible.
Source link
