7 ** ¶ HE government`s plan to present a climate-focused budget for the next fiscal year is a paradigm shift in a 6 national economic planning. And a welcome one as it is about time that Pakistan`s enormous climate-related challenges were incorporated in its economic strategy, even though cynics argue that the policy shift is driven by liquidity compulsions to secure climate funds from the IMF. According to the minister of state for climate change, nearly 30pc of all public development projects for the next year will undergo a Climate Public Investment Management Assessment. This announcement came at a conference where experts highlighted Pakistan`s many challenges including increased vulnerability to climatic risks, which are affecting agriculture; constraints on development expenditure imposed by the IMF`s austerity programme; and the need to switch to renewable energy and transport electrification.
As one of the countries most affected by climate change, Pakistan has suffered massive economic and infrastructural losses due to recurring extreme weather events besides paying a heavy human cost. It may take decades before we can recoup the enormous losses suffered on account of natural disasters such as floods and droughts that have led to irreparable economic losses, even if it is hard to tell which of the two climate change or terrorism has proved more lethal for the people. But it is never too late to revise priorities. The brute reality is that the country cannot avoid the adverse impacts of climate change. Yet with the adoption of smart policies and allocation of maximum resources for climate adaptation and mitigation, we may still be able to substantially contain potential future losses. True, the government is facing a cash crunch but the IMF`s $1.4bn climate resilience facility can prove to be the starting point. Besides, the government can also slap carbon taxes on industrial and other polluters to not just raise revenues for investment in climate resilience initiatives but also force them to take action to adopt cleaner technologies and avoid punitive levies. In the past, we have seen private enterprises act swiftly when their businesses and profits were threatened due to demands for environmental-friendly practices by foreign buyers.
Aligning the government system and policies with climate goals is not enough; it is also crucial for the private sector to make the required changes whether motivated by incentives or driven by government pressure.
