Pakistan Urgently Needs $565.7 Billion Investment to Meet Climate Targets by 2035

Pakistan urgently needs an estimated $565.7 billion in investment to meet its Nationally Determined Contributions (NDC) 3.0 climate targets by 2035, participants were told at a session hosted by the Overseas Investors Chamber of Commerce and Industry (OICCI) in Karachi.

The session took place following the Securities and Exchange Commission of Pakistan’s issuance of revised ESG Disclosure Guidelines for listed companies, formally aligned with the Pakistan Green Taxonomy.

Under NDC 3.0, Pakistan has committed to a 17 percent unconditional and 33 percent conditional reduction in greenhouse gas emissions, a 30 percent increase in electric vehicle adoption, and a shift towards 60 percent renewable energy. Participants noted that achieving these targets will depend heavily on attracting green-aligned domestic and foreign investment.

The Pakistan Green Taxonomy, launched by the State Bank of Pakistan in 2024, provides a classification framework to identify economic activities that contribute to environmental objectives. These include climate change mitigation, sustainable water use, ecosystem protection, pollution prevention, circular economy practices, and sustainable land management.

The ESG Disclosure Guidelines outline standardised financial and non-financial reporting metrics. These disclosures will move towards mandatory compliance between 2029 and 2031, allowing companies time to strengthen internal systems and reporting capacity.

The technical session was conducted by Farrukh Rehman, a climate regulatory compliance expert and former president of the Institute of Chartered Accountants of Pakistan. He said the integration of the Green Taxonomy into ESG reporting offers businesses a clear roadmap to align operations with national climate objectives and attract sustainable investment.

OICCI Secretary General M. Abdul Aleem said the corporate sector increasingly recognises sustainability and accountability as core business priorities. He added that adopting ESG disclosures and PGT-aligned practices can help companies access capital, drive innovation, and manage climate-related risks.

Participants were also briefed on key technical criteria under the taxonomy, including the substantial contribution test, do-no-significant-harm principles, and minimum social safeguards.