As the situation continues to unfold, • Allocations in all climate heads face cuts, except for disaster management • Experts call for transparency in climate spending, structural reforms ISLAMABAD: Climate allocations in the next fiscal year ’ s federal budget again fall short of putting Pakistan on a path towards a climate-smart future and inclusive growth despite the immediate risks it poses to the country. Except for disaster management finance, allocations in almost all climate categories have decreased compared to the outgoing financial year. Officials are expected to release further statements.

Context and History

The issue at hand has deep roots and a history that continues to shape the current situation.

“ Given the country ’ s exposure to floods and heat waves, adaptation and resilience should receive at least as much attention as mitigation, ” he said, adding it was equally vital to prepare developing countries ’ budgets and fiscal space for climate action, as it was to push for multilateral ( worldwide) solutions.

Overall, the climate budget for the next year has shrunk except for the disaster spending.

At the same time, in addition to the newly introduced disaster tagging, the government earmarked Rs19bn under the head of reconstruction, while rec­overy and rehabilitation funds have risen from Rs1.1bn to Rs21 billion.

Reactions and Responses

Those with expertise in the area say the timing of this development is particularly notable.

Past climate transformation minister Malik Amin Aslam said the budget reflected a “ suicidal sto­ry ” as he questioned a decrease in climate allocations.

According to those with knowledge of the situation, experts believe that these concerning reports should have been reflected in the fiscal allocations, but there seems to be a general disregard for this looming disaster.

What has become increasingly clear is that the one good thing that came out of this budget is no new taxes on renewables, but energy expert Dr Khalid Waleed told Dawn that pre-budget speculations that the government would tax solar and batteries bumped the prices up nonetheless.

Policy Implications

Looking at the practical effects, the outlook remains significant and wide-ranging.

The government aims to collect Rs20bn in the EV adoption levy, a 100pc increase, and Rs50bn in the Climate Backing Levy to control emissions.

Of particular significance is the fact that dr Abid Suleri, a member of Pakistan ’ s Domestic Economic Advisory Council, said the money collected under the climate levy should be spent to address climate change instead of making it a part of a wider budget pool.

Adding to the complexity of the situation, according to climate policy expert Ali Tauqeer Sheikh, climate revenue instruments, such as the carbon tax, without a robust public transport network, merely act as exclusionary tools that punish the public in the name of climate move.

At the same time, failing that, it is just another means of fleecing the public and throwing the collected funds in a black hole. ” For Mr Sheikh, climate change must become the prism through which the government should view the entire economic and financial system, whereas calling out the government ’ s failure to prioritise ecosystem protection against slow-onset disasters, like droughts, Glofs and displacement.

Notably, he said since 2021, the PSDP funding for the ministry

The Road Ahead

With key questions still unanswered and the situation continuing to develop, observers are watching closely for the next steps. This outlet will continue to provide updates as the story progresses.