Pakistan is planning a $615 million green financing initiative aimed at helping export industries reduce carbon emissions, improve energy efficiency, and remain competitive in international markets increasingly shaped by climate regulations.
The initiative “Enhancing Green Export Capacity Through Green Financing” is being led by EXIM Bank in partnership with local financial institutions and international development financing arrangements.
The program is expected to help Pakistan avoid up to 80 million tonnes of carbon dioxide equivalent emissions over its operational lifespan.
The financing initiative targets major export sectors, including textiles, leather, rice, and surgical goods, particularly to help industries comply with the European Union’s Carbon Border Adjustment Mechanism and broader global environmental standards.
Under the proposed structure, the package will consist of $600 million in concessional lending and $15 million in grant support through a blended finance model. The funds will be used to help exporters adopt cleaner technologies, replace outdated machinery, improve energy efficiency, and integrate renewable energy systems into industrial operations at lower financing costs.
Officials said the initiative is aligned with Pakistan’s 2030 emission reduction goals and broader efforts to strengthen sustainable industrial growth while protecting export competitiveness.
The project’s financial structure includes foreign exchange cover and carries an estimated net present value of $9.9 billion and an internal rate of return of 3.08 percent.
The initiative also supports Sustainable Development Goals related to economic growth, industrial innovation, responsible consumption, and climate action, while aiming to generate skilled industrial employment across targeted sectors.
