Govt expects Rs50 billion from Climate Support Levy, allocates Rs4.96 billion for climate ministry

The federal government expects to raise Rs50 billion through the newly introduced Climate Support Levy on fuel products in FY2026-27, while allocating nearly Rs4.96 billion to the Ministry of Climate Change and Environmental Coordination.

Budget documents show that the ministry has been allocated Rs2.48 billion under the Public Sector Development Programme (PSDP) and another Rs2.48 billion for current expenditure.

The development allocation is slightly higher than the revised PSDP allocation of Rs 2.30 billion in the outgoing fiscal year.

A review of PSDP documents shows that the bulk of the ministry’s development spending will go to the Up-scaling of Green Pakistan Programme, formerly known as the Ten Billion Tree Tsunami Programme.

The project has been allocated Rs2.34 billion, accounting for almost 94% of the ministry’s total development budget. The programme is aimed at increasing forest cover and supporting environmental conservation efforts across the country.

Other climate-related projects have received comparatively smaller allocations. The Green Skills for Sustainable Development project has been allocated Rs51.6 million, while Rs50 million has been earmarked for preparation of a National Urban Strategy and guidelines aimed at reducing the impact of floods, droughts and other climate-related risks in urban areas.

Another Rs40.7 million has been allocated for strengthening the technical capacity of the Ministry of Climate Change and Environmental Coordination.

The ministry’s current expenditure budget includes Rs1.48 billion for grants and subsidies, Rs619 million for operating expenses, Rs232 million for employee-related costs and Rs121 million for physical assets.

Budget documents indicate that environmental protection remains a relatively small component of federal spending. The ministry’s development allocation of Rs2.48 billion represents less than a quarter of one percent of the federal PSDP, which has been set at Rs1 trillion for FY2026-27.

The documents further show that the total cost of ongoing climate-related projects under the ministry exceeds Rs123 billion, indicating that substantial funding will be required in future years to complete existing schemes.