Karachi, January 14: Pakistan will need a staggering US$565.7 billion in investment to achieve its Nationally Determined Contributions (NDC) 3.0 climate commitments by 2035, it was revealed during a session on Pakistan Green Taxonomy (PGT) and ESG Disclosure Guidelines hosted by the Overseas Investors Chamber of Commerce and Industry (OICCI). The session, attended by top business executives and industry stakeholders, highlighted the critical role of sustainable finance and transparent ESG reporting in attracting the investments necessary to build Pakistan’s climate resilience.
The session was held in the backdrop of the Securities and Exchange Commission of Pakistan’s issuance of the revised ESG Disclosure Guidelines for listed companies, formally aligning them with the Pakistan Green Taxonomy. The move is aimed at strengthening sustainability reporting, enhancing transparency, and supporting Pakistan’s climate transition and environmental commitments.
The session outlined that Pakistan’s NDC 3.0 targets include a 17 percent unconditional and 33 percent conditional reduction in greenhouse gas emissions, a 30 percent increase in electric vehicle adoption, and a shift to 60 percent renewable energy. Meeting these ambitious goals will depend heavily on mobilizing green-aligned investments, making frameworks like the Pakistan Green Taxonomy and robust ESG disclosure practices essential for guiding capital toward sustainable projects.
The Pakistan Green Taxonomy (PGT), launched by the State Bank of Pakistan in 2024, provides a clear classification system for identifying activities that actively contribute to environmental objectives, including climate change mitigation, sustainable water use, ecosystem protection, pollution prevention, circular economy, and land management. Complementing this, the ESG Disclosure Guidelines, which will transition to mandatory reporting between 2029 and 2031, establish standardized metrics for financial and non-financial sustainability reporting.
The session on green financing was conducted by Farrukh Rehman, an expert on climate regulatory compliance and Former President, The Institute of Chartered Accountants of Pakistan (ICAP), who emphasized, “The integration of Pakistan Green Taxonomy into ESG reporting is a roadmap for businesses to align operations with national climate objectives. Transparent and structured reporting will attract sustainable investment and enable companies to contribute to Pakistan’s environmental and social goals.”
OICCI Secretary General, M. Abdul Aleem, added, “The corporate sector is aware of growing importance of accountability and sustainability as key to business strategy. By adopting ESG disclosures and PGT-aligned practices, companies can secure investment, drive innovation, and enhance resilience against climate-related risks.”
The session also covered technical criteria for PGT alignment, including the substantial contribution test, do-no-significant-harm principles, and minimum social safeguards to ensure ethical and responsible practices. Attendees were guided through reporting formats, international standards such as GRI, ISSB, and TCFD, and stepwise ESG reporting processes to ensure compliance and consistency.
