$19.8 million foreign funding for Pakistan’s climate projects

Islamabad: Pakistan has faced repeated climate-related disasters over the past three years, suffering serious human, economic and environmental losses. The government has now expanded its climate resilience plans through major projects involving foreign funding and public money.

The government disclosed that two major foreign funded climate projects alone carry a combined cost of USD19.8 million, while another water quality project includes a Rs102 million Public Sector Development Programme component along with more than USD7.4 million in support from KOICA.

The figures were provided by Minister for Climate Change and Environmental Coordination Senator Musadik Masood Malik in response to a question from Ms. Mussarat Rafique Mahesar about government action on climate change during the last three years and the funds provided for the purpose.

Pakistan has been described by the government as one of the countries most vulnerable to climate change despite contributing only a very small share of global greenhouse gas emissions.

The government said the country had repeatedly suffered climate induced disasters during the past three years, causing widespread losses to people, the economy and the environment.

In response, the Ministry of Climate Change and Environmental Coordination has strengthened national policies and planning systems aimed at reducing future climate risks.

Among the main frameworks are the National Climate Change Policy 2021, the National Adaptation Plan 2023 and Pakistan’s Nationally Determined Contributions.

The government also approved a Monsoon 2026 Strategic Plan, which was approved by the Prime Minister in November 2025. The plan sets short term, medium term and long term goals for flood preparedness, resilience and recovery.

Another framework covering climate action from 2014 to 2030 is being used as a roadmap for different sectors. The ministry is also working on climate finance, early warning systems, research, public awareness and training for provincial governments.

One of the largest projects listed by the government is the Sustainable Actions for Ecosystem Restoration in Pakistan, known as the SAFER Pakistan Project.

The project has a total cost of USD10 million and will run for four years from 2025 to 2029.

It focuses on restoring wetlands, improving water systems, managing watersheds and developing nature based solutions to climate problems.

The project also covers risks linked to glaciers and other parts of the cryosphere, while strengthening early warning systems. Its work will cover Gilgit Baltistan, Khyber Pakhtunkhwa and Sindh.

Another USD9.8 million project will focus specifically on Buner and Shangla districts of Khyber Pakhtunkhwa. The four year project, running from 2025 to 2029, will focus on integrated climate risk management and stronger disaster resilience.

It includes hydrometeorological stations, river monitoring and community based early warning systems in mountainous areas where glaciers and rivers can create serious risks.

The government stated the Buner and Shangla initiative is being supported through the World Food Programme, while the SAFER project is being implemented by the Ministry of Climate Change and the International Center for Integrated Mountain Development with funding from the Adaptation Fund.

A third project is focused on water quality monitoring and reporting under Sustainable Development Goal 6. The project has a PSDP component of Rs102.006 million and also includes in-kind support from KOICA worth USD7.420 million, stated as equivalent to Rs1.1872 billion in the government response.

It has a five year duration from 2021 to 2026. The government is also preparing district level adaptation plans and locally led adaptation plans to strengthen vulnerable communities’ ability to deal with climate threats.

The ministry says it maintains coordination with provincial governments, issues climate related advisories and provides training and capacity building under the National Adaptation Plan.

Alongside these projects, several financial and regulatory measures have been introduced to encourage climate friendly investment.

The Securities and Exchange Commission of Pakistan has issued environmental, social and governance guidelines for listed companies to encourage climate risk reporting.

The Ministry of Climate Change has also introduced Carbon Market Trading Guidelines 2024, aimed at allowing carbon credits to be generated and traded to help attract climate finance.

The State Bank of Pakistan has introduced Green Banking Guidelines to encourage banks to finance environmentally friendly and climate resilient projects.

An Environmental and Social Risk Management Framework has also been introduced to bring environmental and climate risks into lending decisions.

The Green Finance Taxonomy defines which investments can be considered green and climate aligned. The Planning Commission has also introduced a Climate Hazard and Impact Risk Assessment to examine climate risks in public development projects.

The government said these measures are intended to move climate protection from emergency response towards long term planning. However, the scale of the projects also shows the financial challenge facing Pakistan as the country tries to prepare for repeated climate disasters.

The government has placed greater emphasis on early warnings, water security, ecosystem restoration and climate resilient infrastructure, while seeking foreign support to finance major initiatives.

The government says the overall objective is to prevent repeated disasters from causing the same level of damage in the future and to make vulnerable communities better prepared for floods, droughts, water shortages and other climate related threats.

The question and reply were laid before the National Assembly during the 29th session.