ISLAMABAD, May 17 (ABC): Pakistan is planning a $615 million green financing initiative to improve export competitiveness and reduce carbon emissions. The programme aims to avoid up to 80 million tonnes of carbon dioxide equivalent (CO₂e) emissions during its implementation period while helping industries adopt cleaner production methods.
According to documents available with Wealth Pakistan, the initiative is titled Enhancing Green Export Capacity Through Green Financing. EXIM Bank is leading the programme in collaboration with local financial institutions. International development financing arrangements will also support the project.
Programme targets key export industries
According to the document, the programme will focus on major export sectors, including textiles, leather, rice, and surgical goods. Authorities want to help these industries meet international environmental requirements while improving their global competitiveness.
The initiative will also support industries in complying with the European Union’s Carbon Border Adjustment Mechanism (CBAM). At the same time, it aims to promote broader industrial decarbonisation across the country.
Financing package combines loans and grants
The financing package will follow a blended finance structure. It will include $600 million in concessional lending and $15 million in grant support.
The initiative will help exporters adopt clean technologies and energy-efficient production systems at lower borrowing costs. It will also provide technical assistance for upgrading machinery and introducing renewable energy solutions.
Authorities plan to implement the programme across the country. Participating financial institutions and development finance mechanisms will deliver support to the targeted sectors.
Supporting climate goals and industrial growth
According to the document, the project aligns with Pakistan’s 2030 emission reduction targets. It also aims to strengthen the position of Pakistani exporters as international environmental standards continue to evolve.
The programme will use financing for machinery replacement and clean-energy upgrades. These measures aim to improve energy efficiency and lower industrial emissions.
The investment structure follows a blended debt model with foreign exchange cover. The project’s financial indicators include a net present value (NPV) of $9.9 billion and an internal rate of return (IRR) of 3.08%.
Programme linked with sustainable development goals
The initiative also supports Sustainable Development Goals (SDGs) 8, 9, 12, and 13. In addition, the programme identifies skilled industrial employment as one of its expected outcomes.
The initiative forms part of broader efforts to strengthen sustainable industrial practices and support Pakistan’s transition toward lower-carbon economic growth.
