Islamabad: Senator Sherry Rehman, Chairperson of the Senate Standing Committee on Climate Change, led a meeting focused on addressing Pakistan’s climate financing challenges and progress on the Electric Vehicle (EV) policy. The discussions, held at Parliament House, emphasized the need for structured financial solutions to bridge a substantial funding gap and called for comprehensive policy reforms.
According to a statement by Senate of Pakistan, Senator Rehman highlighted the estimated $340 billion funding gap necessary for sustainability and stressed the urgency of accessible climate finance. She noted that Pakistan’s financial capacity remains significantly lower than that of Bangladesh, pointing to a critical need for immediate intervention. “Climate finance is not just about pledges; it’s about ensuring timely access to funds and building institutional capacity for climate resilience,” she stated.
The Finance Minister echoed these concerns, emphasizing the importance of a structured approach incorporating key enablers such as the National Adaptation Plan and National Climate Finance strategy. He mentioned that ongoing discussions with the IMF under the Extended Fund Facility could potentially secure around one billion dollars, while bureaucratic hurdles remain a significant barrier to accessing climate funds.
On the EV policy, Senator Rehman underscored the importance of incentivizing EV adoption to reduce carbon emissions. She insisted on the active implementation of the policy to mitigate pollution, particularly in urban areas like Punjab. The Finance Minister supported this stance, highlighting the need for policy mapping in the budgeting process and addressing taxation anomalies to facilitate the transition to an electric vehicle ecosystem.
Further discussions centered on policy reforms for carbon sinks and forestry projects. Senator Rehman called for a shift in mangrove restoration policy to enable wider utilization of the delta region, free from bureaucratic restrictions. She also highlighted the need for innovative financing solutions, such as targeting foreign markets for waste management, and stressed that reliance on private funding alone is unsustainable.
In conclusion, Senator Rehman called for a structured approach including measurable project metrics and debt swaps to enhance financial viability. She emphasized the critical role of engaging experts and enhancing institutional capacity, and proposed the establishment of a dedicated financial cell within the Ministry of Finance.
The session included participation from Senators Bushra Anjum Butt and Sarmad Khan, the Minister of Finance and Revenue, and senior officials, all of whom agreed on the necessity of cohesive climate action across Pakistan.