Climate Change Impacts: Generating Private Sector Financing in Pakistan

Extreme climate changes in Pakistan are inevitable in the coming decades. These climate changes have the potential to cause mass migrations and severe losses on Pakistan’s exports, infrastructure, and human security. To tackle these challenges, there is a need to generate financing from the private sector in such a way that private sector earns profit on their investment in an ecologically beneficial manner rather than investing on projects which are harmful to the environment. For this purpose, green bonds, sustainability linked bonds, conservation financing, public – private partnerships and investments in agriculture as well as renewable energy sectors are some of the financial pathways to generate financing in Pakistan. However, these routes shall require extensive changes in Pakistan’s legal apparatus from both the financial perspective as well as from the environmental milieu.