Page 10 - CMA Journal (Nov-Dec 2025)

Exclusive Interview

Climate justice should mean recognizing that Pakistan
faces a USD 348 billion climate finance gap by 2030, South Asian forums like SAARC
ensuring that finance is grant-based, not debt-driven, remain largely inactive
especially when climate inaction could cost USD 250
billion by 2030 and USD 1.2 trillion by 2050. because of India’s
This financing must not be vague, classified as ODA, or depoliticization of the region,
depend on “private pathways” to unlock climate support
for the vulnerable. It must be measurable, accessible, and even on climate actions which
delivered with speed and predictability.
are essentially transboundary
This is why Pakistan proposed IDCs as a mechanism to
bring transparency and accountability to the pledges
and promises made since Copenhagen. The USD 100 of the region, even on climate actions which are
billion per year commitment never materialized at essentially transboundary. Therefore, Pakistan could
anywhere near the level needed by countries exposed to pivot toward Central Asia to bargain collectively, build
climate shocks. Multilateral forums such as COP are the regional consensus, and move forward together in this
venues to change that. Developing countries like defining decade. We can only hope to meet the
Pakistan rely on multilateralism to deliver climate justice, challenge at multilateral forums together — not in
but the collapse of many donor commitments has left isolation.
these promises largely unrealized.
The Pak–C2 Regional Energy Transition Taskforce can
ICMA: With Pakistan’s ambitious NDC targets, how coordinate cross-border action and unlock shared
can international funding be used most effectively? opportunities. The Taskforce could focus on joint R&D in
renewable technologies and green hydrogen; regional
Sherry Rehman: Pakistan’s NDC 3.0 commits to a 50%
grid integration under CASA-1000 and other corridors;
emissions reduction by 2035, with 17% unconditional
unified green finance frameworks to attract large-scale
and 33% conditional on international finance. The total
climate investment; and transparent tariff and policy
financing requirement is USD 565.7 billion. Between
mechanisms to ensure predictability for investors.
2021–2025, Pakistan has achieved 37% of its targeted
emissions reduction without external aid. Between Pakistan and Uzbekistan have pledged carbon neutrality
2019–2021, Pakistan received USD 5.4 billion in by 2050, while Kazakhstan, a regional manufacturing
climate-related finance, of which 74% went to powerhouse, can play a leading role in developing
mitigation, while adaptation received only USD 1.37 low-emission industrial processes. These represent
billion, despite Pakistan’s extreme climate exposure. pathways to joint prosperity that can unlock capital in
ways that are both creative and potentially
To use funding effectively, Pakistan must prioritize
transformational, but they will require federal focus and
high-impact, climate-rational projects aligned with its
strong ownership in execution.
National Adaptation Plan (2023) and National Climate
Finance Strategy, rather than pursuing fragmented or ICMA: What innovative financing or public-private
piecemeal proposals. partnerships can help accelerate climate adaptation?
Redirecting finance toward adaptation measures such as Sherry Rehman: Pakistan is already moving beyond
flood protection, water security, climate-resilient agricul- traditional aid because of intense competition for
ture, health systems, and early warning systems will deliver climate funds. Parametric insurance now covers 9.1
the greatest returns in terms of resilience and survival. million farmers globally, offering rapid post-disaster
payouts. Financial tools under exploration include green
ICMA: Can you tell us about the Pak C energy
2 sukuk, panda bonds, carbon markets, and green
transition task force and its potential impact on the
region? investment classification systems and taxonomies.
The country also needs to shift toward mobilizing
Sherry Rehman: The Pak–C region, comprising of
2 domestic and private-sector finance, recognizing that
Pakistan, Kazakhstan, and Uzbekistan, with a combined
reliance on international climate funds alone is
population of 308.25 million and a GDP of USD 848
insufficient and increasingly competitive.
billion (IMF), possesses the scale, capacity, and shared
challenges to lead the Global South in defining a At COP30, Pakistan called for reforms to simplify access
collective energy transition pathway. The transition to climate funds such as the Green Climate Fund, while
cannot happen in silos. South Asian forums like SAARC also pledging to self-finance disaster recovery rather
remain largely inactive because of India’s depoliticization than rely solely on emergency assistance from abroad.

8 ICMA’s Chartered Management Accountant, Nov-Dec 2025