Climate change is Pakistan’s most urgent and pressing threat, and perhaps our country’s biggest opportunity to jump into a more resilient and self-reliant future.
Pakistan needs resources for climate resilience, mitigation and adaptation, not just to survive, but to thrive.
Climate justice is important for Pakistan, but equally important and promising is the climate opportunity the country presents in areas like carbon markets, restoration, renewable energy, and climate led innovation.
As the country’s and, in fact, South Asia’s oldest and Pakistan’s largest, business chamber, we feel we have a role to play. Only last year, the chamber’s contribution to social responsibility and sustainability amounted to over US$ 50 million.
OICCI is already playing a monumental role on climate. As the sole private sector participant from Pakistan at COP28, OICCI has been advocating for sustainable public-private partnerships to address climate challenges. T
he Chamber organized Pakistan’s first and only climate conference, after COP27, that brought together diverse and relevant stakeholders. The conference continues to be an important tradition annually for actionable recommendations to support a climate-resilient future.
OICCI’s engagement in global climate forums is: mobilizing capital for decarbonization, promoting circular economy practices, and influencing policies that align with Pakistan government’s climate action objectives. The OICCI member companies are making notable strides.
The installation of solar power plants with capacities, targeting a 30 percent reduction in Scope 1 and Scope 2 CO2 emissions by 2030, and achieving zero liquid discharge in wastewater management are some of the areas our members are actively working on.
Members are also working on increasing water recycling ratios within plants by 35 percent and reduce plastic usage for a circular future by one-third. The OICCI member companies aim to achieve carbon neutrality between 2040 till 2050 with a 50 percent reduction in greenhouse gas emissions by 2030.
We have observed increasing level of investments in renewable energy sources, with a significant push towards solar and wind energy, and the transition to Euro-V compliant fuels by 2030.
Many of OICCI members including Unilever, Nestle, BASF, Standard Chartered, Infra Zamin, Abbott, Dawlance/Arcilek/Beko, Toyota Indus Motor Company, just to mention a few amongst many, are working on climate initiatives that will help lead us to a sustainable future.
However, the work of OICCI members alone may not be enough to help Pakistan course correct and future-proof its climate needs. In recent years, we have faced some of the most severe impacts of climate change—devastating floods, extreme heatwaves, and unpredictable weather patterns that have affected millions of lives and disrupted the economy.
Lahore, one of our biggest cities, has faced smog levels upwards of 1,100. These profound challenges pose also an opportunity.
As the government continues to work on addressing immediate needs, for the medium to long term, a sustainable impact will only be possible if the private sector commitments to climate are supported by green financing in the long run. It is imperative that private sector explores different green financing options such as green bonds and sustainability-linked loans and the State Bank of Pakistan creates a policy framework to encourage this. Our goal is to bridge the $152 billion adaptation financing gap by making green finance and sustainability a core focus.
Pakistan has some of the highest solar irradiation levels in the world, with landscapes ideal for wind energy projects, and its river systems offer significant potential for hydroelectric power and opportunity for impact investments.
The strategic development of these resources can not only satisfy local energy needs but also contribute significantly to the global renewable market. Urban development, green tech, and water management, circularity, green infrastructure, including sustainable urban planning, are all opportunities.
FDI can accelerate the development of renewable energy infrastructure, promote sustainable agriculture from an agricultural country, and increase innovation. These investments can create green jobs, boost the economy, and improve the quality of life for millions.
Several countries like Pakistan have demonstrated remarkable success in attracting climate-related FDI, offering practical lessons to those in similar circumstances. Their stories share a common thread: the importance of setting clear targets and implementing supportive policies to attract climate FDI. For a country like Pakistan, this means not just setting ambitious goals but also creating an inviting environment for investment, and this is where OICCI can help the government and in advising and attracting investors.
Partnering with the private sector, investing in essential infrastructure like grid connectivity, and maintaining a stable political and economic climate are all critical to building trust with potential investors.
By channelling investments into these critical areas—renewable energy, water management, and urban sustainability—we can assist Pakistan in turning its climate vulnerabilities into strengths. This not only aids Pakistan but sets a global example of how targeted investments can enhance resilience and sustainability in response to climate change.
Copyright Business Recorder, 2025
The writer is Chief Executive/Secretary-General OICCI
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