KARACHI: Pakistan will require an estimated $565.7 billion in investment to meet its Nationally Determined Contributions (NDC) 3.0 climate commitments by 2035, participants were told at a high-level business forum on sustainable finance and climate reporting.
The estimate was shared during a session on the Pakistan Green Taxonomy (PGT) and Environmental, Social and Governance (ESG) Disclosure Guidelines, hosted by the Overseas Investors Chamber of Commerce and Industry (OICCI) on Wednesday. The event, attended by senior business leaders and industry stakeholders, underscored the importance of sustainable finance and transparent ESG reporting in mobilising investment and strengthening Pakistan’s climate resilience.
The session was held against the backdrop of the Securities and Exchange Commission of Pakistan’s (SECP) issuance of revised ESG Disclosure Guidelines for listed companies, formally aligned with the Pakistan Green Taxonomy. The initiative aims to strengthen sustainability reporting, enhance transparency, and support Pakistan’s climate transition and environmental commitments.
Speakers noted that Pakistan’s NDC 3.0 targets include a 17 per cent unconditional and a 33 per cent conditional reduction in greenhouse gas emissions, a 30 per cent increase in electric vehicle adoption, and a shift to 60 per cent renewable energy. Achieving these targets will depend heavily on mobilising green-aligned investment, making frameworks such as the Pakistan Green Taxonomy and robust ESG disclosure practices critical in directing capital towards sustainable projects.
Launched by the State Bank of Pakistan in 2024, the Pakistan Green Taxonomy provides a clear classification system for identifying economic activities that contribute to environmental objectives, including climate change mitigation, sustainable water use, ecosystem protection, pollution prevention, the circular economy, and sustainable land management. Complementing this framework, the ESG Disclosure Guidelines, which will be phased in as mandatory between 2029 and 2031, establish standardised metrics for financial and non-financial sustainability reporting.
The session was conducted by Farrukh Rehman, an expert on climate regulatory compliance and former president of the Institute of Chartered Accountants of Pakistan (ICAP), who said: “The integration of the Pakistan Green Taxonomy into ESG reporting provides a roadmap for businesses to align their operations with national climate objectives. Transparent and structured reporting will help attract sustainable investment and enable companies to contribute meaningfully to Pakistan’s environmental and social goals.”
OICCI Secretary General M Abdul Aleem said the corporate sector increasingly recognises accountability and sustainability as central to business strategy. “By adopting ESG disclosures and PGT-aligned practices, companies can attract investment, drive innovation, and strengthen resilience against climate-related risks,” he added.
The session also covered the technical criteria for PGT alignment, including the substantial contribution test, the ‘do no significant harm’ principle, and minimum social safeguards to promote ethical and responsible business practices. Participants were guided through reporting formats, international standards such as GRI, ISSB and TCFD, and step-by-step ESG reporting processes to ensure consistency and regulatory compliance.
