Climate crisis demands collective action
The severe impacts of climate change are becoming more visible and alarming with each passing day. Wildfires in North America, heatwaves across Europe, and catastrophic floods in Asia are stark reminders of a warming planet. Climate change is a reality that is reshaping lives, economies, and ecosystems in real time.
Developing countries are the most vulnerable to the escalating impacts of climate change. For Pakistan, the stakes are even higher. The country is witnessing environmental challenges that threaten its ecosystems, economy, and social fabric. In a recent Country Climate and Development Report by the World Bank, it is estimated that climate-related events can reduce Pakistan's GDP by 18–20% by 2050. These numbers frame a stark reality and set the stage for decisive action.
Over the past two decades, the country has experienced an alarming rise in extreme weather events. In 2022, heavy monsoon rains caused devastating floods, affecting over 33 million people, displacing 3 million, and resulting in over $30 billion in economic losses. Nearly two million homes were destroyed, and millions of livestock were lost. These events revealed not only environmental degradation but also the socio-economic fragility that climate disasters amplify.
According to the World Health Organization, environmental factors contribute to 200 deaths per 100,000 people in Pakistan annually. Further underscoring that outdoor air pollution in Pakistan contributes to around 22,000 premature deaths annually.
This health toll serves as a stark reminder for Pakistan to adopt climate change initiatives and focus on a collective and coordinated response. Public institutions, private companies, and communities must work together to build resilience, reduce emissions, and prepare for the future. The country's public and private sectors have a special responsibility to align their operations with climate resilience goals.
Exploration and Production (E&P) companies in Pakistan are increasingly recognising this responsibility. In December 2023, at the United Nations Climate Change Conference (COP28) held in Dubai, Pakistan's leading Exploration and Production (E&P) companies—OGDCL, PPL, and GHPL—signed the Decarbonization Charter. The accord highlighted their collective commitment to supporting climate change initiatives and aligning business operations with global sustainability goals.
Additionally, OGDCL has adopted several initiatives aimed at reducing its ecological footprint, promoting renewable energy, and supporting local communities. The company has launched a nationwide tree-plantation campaign. In collaboration with academic institutions and community centres across Pakistan, the company has planted thousands of trees to enhance biodiversity, improve air quality, and offset carbon emissions.
Beyond tree plantation, the company is also investing in renewable energy solutions. In Lakki Marwat, the company solarised 30 homes, offering off-grid communities access to clean electricity. Solar water pumping systems have also been installed in six communal sites across the Kharan and Noshki districts of Balochistan, ensuring sustainable water access in water-stressed regions. Furthermore, the company installed a 130 KVA solar system for the Pather Nala water project in Dera Bugti's Pirkoh area to ensure a consistent water supply.
To institutionalize its sustainability vision, OGDCL introduced its Greenhouse Gas (GHG) Emission Policy in 2023 and launched a comprehensive ESG (Environmental, Social and Governance) Strategy 2025. This strategy includes flaring reduction programs, methane leak detection systems, and the establishment of a corporate GHG inventory to set measurable emission reduction targets.
The journey toward climate resilience demands a whole-of-society approach. Governments must lead with policies and incentives. Citizens must reduce consumption and waste. And corporations must integrate sustainability into their business DNA.
As we mark World Environment Day 2025, the message is clear: the time to act is now. It is the collective responsibility of all stakeholders to ensure that we respond with urgency, innovation, and commitment.
(The writer is a student of BSc Environmental Engineering NUST Islamabad)
Copyright Business Recorder, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
6 hours ago
- Express Tribune
India's bid to isolate Pakistan at FATF fails
Listen to article India's efforts to push Pakistan back onto the Financial Action Task Force (FATF) grey list have once again failed, as the money laundering watchdog opted instead to keep the country under a "reporting" mechanism rather than downgrading its status, informed sources have revealed. Pakistan was placed on the FATF's increased monitoring list (also known as the grey list) in 2018 due to concerns about its anti-money laundering (AML) and counter-terrorism financing (CFT) frameworks. However, in October 2022, the country was removed from the grey list following significant improvements and the completion of action items related to AML/CFT. During the latest FATF meeting, the Indian delegation actively lobbied to reinsert Pakistan into the grey list. However, China supported Pakistan, advocating for relief, while Turkey and Japan also extended their full backing. Sources said FATF opted instead to keep the country under a "reporting" mechanism rather than downgrading its status. They further indicated that India, with backing from Israel, sought to use the FATF platform to pressure Pakistan. However, member states dismissed New Delhi's attempts as negative propaganda, choosing instead to recognise Islamabad's progress. Following Operation Bunyamum Marsoos, Indian diplomatic missions had intensified campaigns against Pakistan in various countries but New Delhi's narrative failed to gain traction internationally. Meanwhile, Federal Finance Minister Muhammad Aurangzeb remarked that India has once again faced diplomatic failure on the global stage. He said the World Bank has approved a loan for the development of the Reko Diq mining project in Pakistan. The FATF is the global money laundering and terrorist financing watchdog. It sets international standards that aim to prevent these illegal activities and the harm they cause to society.
Business Recorder
11 hours ago
- Business Recorder
Climate crisis demands collective action
The severe impacts of climate change are becoming more visible and alarming with each passing day. Wildfires in North America, heatwaves across Europe, and catastrophic floods in Asia are stark reminders of a warming planet. Climate change is a reality that is reshaping lives, economies, and ecosystems in real time. Developing countries are the most vulnerable to the escalating impacts of climate change. For Pakistan, the stakes are even higher. The country is witnessing environmental challenges that threaten its ecosystems, economy, and social fabric. In a recent Country Climate and Development Report by the World Bank, it is estimated that climate-related events can reduce Pakistan's GDP by 18–20% by 2050. These numbers frame a stark reality and set the stage for decisive action. Over the past two decades, the country has experienced an alarming rise in extreme weather events. In 2022, heavy monsoon rains caused devastating floods, affecting over 33 million people, displacing 3 million, and resulting in over $30 billion in economic losses. Nearly two million homes were destroyed, and millions of livestock were lost. These events revealed not only environmental degradation but also the socio-economic fragility that climate disasters amplify. According to the World Health Organization, environmental factors contribute to 200 deaths per 100,000 people in Pakistan annually. Further underscoring that outdoor air pollution in Pakistan contributes to around 22,000 premature deaths annually. This health toll serves as a stark reminder for Pakistan to adopt climate change initiatives and focus on a collective and coordinated response. Public institutions, private companies, and communities must work together to build resilience, reduce emissions, and prepare for the future. The country's public and private sectors have a special responsibility to align their operations with climate resilience goals. Exploration and Production (E&P) companies in Pakistan are increasingly recognising this responsibility. In December 2023, at the United Nations Climate Change Conference (COP28) held in Dubai, Pakistan's leading Exploration and Production (E&P) companies—OGDCL, PPL, and GHPL—signed the Decarbonization Charter. The accord highlighted their collective commitment to supporting climate change initiatives and aligning business operations with global sustainability goals. Additionally, OGDCL has adopted several initiatives aimed at reducing its ecological footprint, promoting renewable energy, and supporting local communities. The company has launched a nationwide tree-plantation campaign. In collaboration with academic institutions and community centres across Pakistan, the company has planted thousands of trees to enhance biodiversity, improve air quality, and offset carbon emissions. Beyond tree plantation, the company is also investing in renewable energy solutions. In Lakki Marwat, the company solarised 30 homes, offering off-grid communities access to clean electricity. Solar water pumping systems have also been installed in six communal sites across the Kharan and Noshki districts of Balochistan, ensuring sustainable water access in water-stressed regions. Furthermore, the company installed a 130 KVA solar system for the Pather Nala water project in Dera Bugti's Pirkoh area to ensure a consistent water supply. To institutionalize its sustainability vision, OGDCL introduced its Greenhouse Gas (GHG) Emission Policy in 2023 and launched a comprehensive ESG (Environmental, Social and Governance) Strategy 2025. This strategy includes flaring reduction programs, methane leak detection systems, and the establishment of a corporate GHG inventory to set measurable emission reduction targets. The journey toward climate resilience demands a whole-of-society approach. Governments must lead with policies and incentives. Citizens must reduce consumption and waste. And corporations must integrate sustainability into their business DNA. As we mark World Environment Day 2025, the message is clear: the time to act is now. It is the collective responsibility of all stakeholders to ensure that we respond with urgency, innovation, and commitment. (The writer is a student of BSc Environmental Engineering NUST Islamabad) Copyright Business Recorder, 2025
Express Tribune
16 hours ago
- Express Tribune
A Budget of Relief, Reform and Resilience
The Finance Minister of Pakistan Muhammad Aurangzeb has just announced the federal budget for the FY 2025-26. This budget is more than just an annual fiscal document – it is a powerful signal of economic resilience, maturity and forward-thinking governance in a fragile global economic environment. The world is grappling with economic fragmentation, slowing growth, and climate-induced vulnerabilities. Despite this, Pakistan's budget stands out not only for its strategic vision but also for its commitment to protecting its people, promoting equity and laying down the foundation of long-term development. Framed under the leadership of Finance Minister Muhammad Aurangzeb and presented with clarity by Prime Minister Shehbaz Sharif's government, this budget doesn't merely respond to crisis – it sets the tone for economic transformation. Where many governments around the world are still struggling to contain inflation and sluggish recovery, Pakistan's macroeconomic indicators have decisively turned a corner. Inflation has dropped dramatically over this year – from a debilitating 29.2% to just 4.7%, and the primary surplus has reached GDP of 2.4 per cent. These numbers matter deeply in a region like South Asia and even globally, where fiscal instability has historically deterred investment and threatened growth. More importantly, this turnaround wasn't the result of one-time bailouts or reactionary policies. There were no mini-budgets nor new taxes, only disciplined financial stewardship, bold structural reforms and a focused drive toward performance-led governance. Pakistan's external confidence is at a high, as evidenced by $31.2 billion in remittances, an all-time high on the KSE-100 index, and sovereign credit upgrades from agencies like Fitch and a positive sentiment from the World Bank, ADB and IFC. These are not mere symbolic metric. Instead, they reflect international trust in Pakistan's trajectory. Aided by an expanding remittance base, a strengthened rupee and growing investor appetite, the economy healing and pivoting. Perhaps the most understated strength of this budget lies in its pro-people character, particularly for salaried individuals. While inflation remains low, the government has proposed a significant easing of the tax burden on the middle class. The 600,000 – 1.2 million rupee income slab, which previously faced a 5% tax rate, will now only be taxed at only 1%. Individuals earning up to 2.2 million rupees will benefit from a rate drop from 15% to 11%. This is economic justice in the form of a revised tax policy. For a country like Pakistan, that has often overlooked the salaried class in the previous governments, this policy acknowledges their contribution and addresses their inflation-fatigued wallets. At the same time, the government hasn't forgotten its responsibility to broaden the tax net. Rather than impose burdens on compliant taxpayers, the Federal Board of Revenue (FBR) has been restructured for transparency and performance. Using AI-powered audit systems, digital production tracking, faceless customs procedures and integrated invoicing mechanisms, the government has embraced digital enforcement over coercion. Results show that over 390,000 high-value non-filers identified, Rs9.8 billion in fake refunds blocked, and a doubling in the tax-paying entity base. This is what modern fiscal governance looks like. Simultaneously, the government is making serious efforts in bringing about structural reforms. The consumption-led model that repeatedly brought Pakistan to the brink has been replaced in favour of an export-led, investment-oriented framework. Industrial tariffs are down by 31%, inefficient furnace oil plants are being retired and Rs3 trillion has been saved through IPP renegotiations. In addition, there is proactive debt management strategy: Rs1 trillion in domestic debt bought back, debt-to-GDP falling below 70%, and the picture that emerges is of a country finally breaking the cycle of crisis management. However, budgets are not only about economic numbers, but also about vision. The budget for 2025–26 speaks to a long-term development agenda that is national in scope and inclusive in spirit. For instance, Rs716 billion has been allocated to BISP, with over 10 million families supported. Education and health together have received over Rs2 trillion in combined spending. Moreover, the entire budget framework has been aligned with provincial coordination, ensuring that more than 60% of provincial ADPs are directed toward human development: health, education, water and social protection. For the country's future workforce, the budget also carves out new spaces. Whether it's offering Rs100,000 collateral-free loans to 750,000 small farmers or providing Rs641 billion in financing to SMEs, the vision is entrepreneurial. In the digital domain, IT exports have surged 21.2% and the target of $25 billion in five years is ambitious, but within reach, given the flourishing startup ecosystem that has created 185,000 jobs. This is supported by landmark regulatory upgrades, from better cybersecurity frameworks to improved e-government rankings globally. This budget is also the first climate-conscious budget in the history of Pakistan. Green Sukuks worth Rs30 billion have been issued, and Pakistan is now aligned with a $40 billion World Bank-IFC partnership that puts climate resilience at its core. In a world where ESG compliance increasingly guides capital flows, this will be a major advantage. Critics may argue that many of these reforms will take time to materialize, which is logical. But the fact that the current administration is thinking in terms of development and economic progress is precisely what sets this budget apart. It reflects a level of coordination, courage and clarity not often seen in Pakistan's fiscal history. Rather than short-term populism, the government has chosen long-term discipline. As we compare this to global fiscal responses, the contrast becomes sharper. While advanced economies resort to inflationary stimulus and emerging markets scramble with austerity, Pakistan has carved a unique middle path: relief without recklessness, growth without instability and reform without delay. In conclusion, Budget 2025–26 is a turning point for the country. It marks the transition of Pakistan's economy from fragility to foresight. And while challenges will remain, as they do for every nation in this global environment, the commitment to a stable, sovereign and sustainable economic future is now unshakeable. Pakistan, under the leadership of Prime Minister Shehbaz Sharif and Finance Minister Muhammad Aurangzeb, has shown that recovery is possible, economic resolve is real, and reform is not just an idea – it is an agenda in motion.
