Pakistan needs an estimated $565.7 billion in investment to meet its climate targets by 2035. This information was shared during a session held in Karachi by the Overseas Investors Chamber of Commerce and Industry.
The session followed the release of revised ESG Disclosure Guidelines by the Securities and Exchange Commission of Pakistan. These updated guidelines are now aligned with the Pakistan Green Taxonomy. The alignment aims to improve sustainability reporting and attract green investment.
Under its Nationally Determined Contributions 3.0, Pakistan has set several climate targets. The country plans to cut greenhouse gas emissions by 17 percent unconditionally. It also aims for a 33 percent conditional reduction, depending on global support. Other goals include 30 percent electric vehicle adoption and 60 percent renewable energy use.
Participants at the session said meeting these targets will require large-scale green investment. Both local and international investors will be important. They stressed that climate-friendly funding is key to long-term progress.
The Pakistan Green Taxonomy was launched by the State Bank of Pakistan in 2024. It offers a clear framework to identify sustainable economic activities. These include climate change control, water conservation, ecosystem protection, and pollution reduction. The taxonomy also covers circular economy practices and sustainable land use.
The revised ESG Disclosure Guidelines introduce standard reporting measures. These include both financial and non-financial data. Compliance will become mandatory in phases between 2029 and 2031. Companies will have time to improve systems and reporting processes.
The technical session was led by Farrukh Rehman, a climate compliance expert. He is also a former president of the Institute of Chartered Accountants of Pakistan. He said linking the Green Taxonomy with ESG reporting helps businesses plan better. It also makes companies more attractive to sustainable investors.
OICCI Secretary General M. Abdul Aleem also spoke at the event. He said companies now see sustainability as a business priority. He added that ESG practices can help firms raise capital and manage climate risks.
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Participants were also briefed on technical criteria under the taxonomy. These guidelines aim to support environmentally responsible growth in Pakistan.
