SUMMARY of the Article “Climate-smart finance bill,” by Ali Tauqeer Sheikh, Dawn, June 20th, 2024

The article criticizes Pakistan’s proposed finance bill for the next fiscal year for its lack of commitment to climate resilience, despite the country being highly vulnerable to climate change. The bill does not set a direction for sustainable economic development or climate-resilient investments and overlooks the need for institutional and policy reforms to address economic damages from climate-induced disasters. The government has instead chosen a simplistic approach to generate revenue by cutting subsidies, with little focus on economic development or climate resilience. Key government entities, such as the Planning Commission and the Finance Ministry, have failed to integrate climate considerations into their budgeting and reporting processes, resulting in a lack of climate-smart budgeting. Comparisons are drawn with Bangladesh, which has made significant strides in climate-proofing its budget and establishing climate funds and frameworks to support climate resilience. Pakistan is urged to adopt similar measures, including tracking climate-related expenditures, aligning budgetary processes with national climate policies, and exploring innovative green finance mechanisms like green bonds and debt-for- » Read More…