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Pakistan allocates Rs2.478 billion for climate change in PSDP 2026-27Breaking

June 15, 2026

By Azeem Ahmed Khan

Pakistan has reaffirmed its commitment to environmental sustainability and climate resilience by allocating Rs2.478 billion for ongoing schemes under the Climate Change and Environmental Coordination Division in the federal Public Sector Development Programme (PSDP) 2026-27, with the flagship Green Pakistan Programme continuing to receive the largest share of funding.

According to the PSDP 2026-27 available with Wealth Pakistan, the entire allocation for the division has been earmarked for four ongoing development schemes, reflecting the government's focus on sustaining momentum in climate action, environmental conservation, institutional strengthening and green economic development.

The largest allocation of Rs2.335 billion has been provided for the Up-scaling of Green Pakistan Programme (Revised). The project, which carries a total cost of over Rs122 billion, remains the centerpiece of the government's environmental agenda. The continued funding is aimed at advancing large-scale afforestation, ecosystem restoration, biodiversity conservation and other initiatives designed to strengthen Pakistan's resilience against the impacts of climate change.

Alongside environmental conservation efforts, the government has also prioritized institutional capacity building. An amount of Rs40.66 million has been allocated for the Strengthening Technical Capacities of the Ministry of Climate Change and Environmental Coordination (Revised) project. The initiative seeks to enhance the ministry's ability to formulate policies, coordinate climate actions and effectively address emerging environmental challenges.

Recognizing the growing importance of green jobs and sustainable entrepreneurship, the PSDP has allocated Rs51.6 million for the project "Green Skills for Sustainable Development: Promoting Green Entrepreneurship and Innovation in Pakistan." The programme is expected to help equip young people and entrepreneurs with skills required for the transition towards a greener economy while encouraging innovation in environmentally sustainable businesses.

The development portfolio also includes Rs50 million for the Formulation of National Urban Strategy and Guidelines to Reduce Impacts of Urban Flooding, Droughts, Climate Disasters and Climate-Resilient Spatial Planning in Pakistan. The initiative aims to support cities in improving urban planning and preparedness against climate-related risks, which have become increasingly frequent and severe in recent years.

The PSDP data shows that the cost of the Climate Change and Environmental Coordination Division's ongoing portfolio totals Rs123.62 billion, with cumulative expenditure reaching an estimated Rs35.02 billion by June 2026. The allocation for 2026-27 is intended to maintain progress on key initiatives and ensure the timely implementation of projects supporting Pakistan's climate adaptation and environmental objectives.

Overall, the PSDP 2026-27 reflects the government's continued emphasis on green development, climate resilience, sustainable urban planning and institutional strengthening, with the Green Pakistan Programme remaining the flagship initiative driving the country's environmental transformation.

Credit: INP-WealthPk