Faiza Tehseen

Pakistan can enhance its global trade position and attract foreign investment by adopting green industrial practices, said Muhammad Saleem, media spokesperson for the Ministry of Climate Change and Environmental Coordination (MoCC&EC), in an exclusive interview with WealthPK.

“Green industrialization is not only an environmental necessity but an economic opportunity too. With the help of all stakeholders, Pakistan can successfully transition toward an eco-friendly industrial economy. This shift will create new jobs, reduce environmental pollution, and contribute to the country’s long-term climate resilience,” he said.

With right policy measures, investments, and collaborations, Pakistan can successfully transition toward an eco-friendly industrial economy, ensuring adherence to global environmental standards. Pakistan’s industrial sector contributes around 20% of the nation's GDP but it is also a major source of deforestation, water pollution, and carbon emissions.

Among the industries with the highest environmental impact is the plastics sector, which accounts for 15% of GDP and provides jobs to over 1.2 million people. The plastics industry is notorious for its significant greenhouse gas emissions, excessive waste generation, and insufficient regulatory compliance, causing severe environmental degradation, needing a stronger regulatory framework and improved recycling practices.

“The Government of Pakistan is actively pursuing a Green Industrialization agenda to meet its climate goals, build climate resilience, and create a sustainable industrial ecosystem. However, this transformation requires extensive policy measures and a robust regulatory framework,” the MoCC&EC spokesperson said. Under the UNCTAD & SPRC Green Industrialization Project, Pakistan has developed a Green Industrialization Policy Framework, and a comprehensive plan to reduce the industrial GHG emissions.

Collaboration among various stakeholders is key to the framework’s success. Muhammad Saleem further said, “The Ministry of Climate Change, along with the Ministry of Industries & Production, Ministry of Commerce, Board of Investment, and Provincial Departments of Industries, is working on finalizing and implementing the policy.” The country’s financial sector is also playing a vital role in promoting green industrialization.

The State Bank of Pakistan’s Green Taxonomy initiative aims to mobilize green finance, providing crucial funding for industries adopting sustainable manufacturing practices. He said, “The path to green industrialization is riddled with obstacles. One of the primary barriers is the high initial investment required for eco-friendly infrastructure.

Many businesses hesitate to make the necessary investments due to the costs associated with adopting cleaner technologies. The country is also facing a shortage of skilled labour and technical expertise.” “Pakistan’s energy sector remains heavily reliant on fossil fuels, which further complicates the transition to greener alternatives.

Many industrial units continue to pollute the environment without facing adequate regulatory enforcement, and the lack of stringent measures to curb emissions has delayed the shift toward clean energy,’’ he told WealthPK. Saleem said the National Electric Vehicle Policy (NEVP) and the 2019 Renewable Energy Policy aim to generate 60% of Pakistan’s energy from clean sources by 2030.

The Punjab Green Development Program and the Pakistan Green Stimulus Plan focus on eco-friendly industrial setups that promote cleaner production processes. The government has partnered with institutions like the United Nations Industrial Development Organization (UNIDO) and the World Bank to secure financing for green initiatives.

To drive the transition to greener industrial processes, financial incentives, such as tax relief and subsidies, are needed to encourage investment in eco-friendly technologies, he added. Talking with WealthPK, Muhammad Akbar, an environmentalist from Gilgit-Baltistan (GB) said, “To accelerate green industrial growth and to meet global environmental standards, Pakistan needs to integrate environmentally sustainable methods with industry.

Fostering public-private partnerships will also scale up green projects by leveraging resources and expertise from both the government and the private sector.” He said weak regulatory enforcement allows the industrial units to add pollution to the environment.  The energy sector’s heavy reliance on fossil fuels is also delaying the transition to green energy alternatives. The increasing global regulatory frameworks including the European Union’s carbon Border Adjustment Mechanism (CBAM), and international trade standards are highly favoring green supply chains.

In the absance of adopting cleaner technologies, Pakistan’s export-oriented industries may lose competitiveness in the international markets. “Investing in research and innovation is crucial to advancing clean technologies and improving energy efficiency. Creating an enabling environment for foreign investments will attract international capital to boost the sustainable industries in Pakistan,” he added.

Credit: INP-WealthPk