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ISLAMABAD, Jun 09 (APP):The federal government, in a major reform, has overhauled the country’s budget system to track and prioritize climate change, gender equality and sustainable development goals (SDGs).
For the first time, all federal budget documents, including the Annual Budget Statement, Performance Budget Book (Green Book), and Budget Call Circular now include detailed breakdowns of climate and gender-related spending.
According to Economic Survey 2024-25 report, the government has introduced a Climate Budget Tagging (CBT) tool to classify and monitor climate-related expenses.
Over 5,000 federal cost centers have been tagged under three key categories: adaptation, mitigation, and supporting activities, aligned with Government National Climate Change Policy. This allows real-time tracking of climate spending, with reports generated quarterly, mid-year, and annually.
To ensure sustained climate action, the government has set minimum thresholds for climate-sensitive spending, mandating at least 8 percent of regular operational expenditures and 16 percent of the Public Sector Development Programme (PSDP) be allocated to climate-related initiatives.
The finance ministry is now mapping climate-related subsidies and developing a framework to identify green revenue streams, ensuring better fiscal planning for climate resilience.
The new system also integrates gender and poverty considerations into climate expenditure analysis, ensuring that budget allocations support vulnerable groups.
This move is expected to help attract international climate finance and private investments by demonstrating Pakistan’s commitment to sustainable development.
Pakistan faces severe climate threats, from floods to extreme heat, making climate-responsive budgeting crucial.
By embedding climate and gender data into financial planning, the government aims to improve transparency, direct funds more effectively, and meet global climate commitments.