Pakistan will require an estimated $565.7 billion in investment by 2035 to meet its Nationally Determined Contributions (NDC) 3.0 climate targets, participants were told at a business forum focused on sustainable finance and climate reporting.
The estimate was shared during a session on the Pakistan Green Taxonomy and Environmental, Social and Governance (ESG) disclosure frameworks, hosted by the Overseas Investors Chamber of Commerce and Industry.
The discussion brought together corporate leaders and industry stakeholders to examine how sustainable finance and improved ESG reporting can help mobilise capital and strengthen climate resilience.
The session followed the issuance of revised ESG Disclosure Guidelines by the Securities and Exchange Commission of Pakistan, which are now aligned with the Pakistan Green Taxonomy. Speakers said the updated framework is intended to improve transparency, standardise sustainability reporting and support the country’s climate transition.
Participants noted that Pakistan’s NDC 3.0 targets include an unconditional 17 percent and a conditional 33 percent reduction in greenhouse gas emissions, a 30 percent increase in electric vehicle adoption and a shift to 60 percent renewable energy. Achieving these goals, they said, will depend heavily on attracting green-aligned investment, making clear taxonomies and consistent ESG disclosures essential.
Introduced by the State Bank of Pakistan in 2024, the Pakistan Green Taxonomy classifies economic activities that support environmental objectives such as climate mitigation, sustainable water use, ecosystem protection, pollution control, circular economy practices and sustainable land management. The ESG Disclosure Guidelines, which will be phased in as mandatory between 2029 and 2031, provide standardised metrics for sustainability reporting.
The session was conducted by Farrukh Rehman, former president of the Institute of Chartered Accountants of Pakistan, who said integrating the green taxonomy into ESG reporting offers businesses a clear pathway to align with national climate goals and attract sustainable investment.
OICCI Secretary General M Abdul Aleem said accountability and sustainability are increasingly central to corporate strategy, adding that adoption of ESG disclosures and taxonomy-aligned practices can help companies manage climate risks while improving access to capital.
The discussion also covered technical criteria for taxonomy alignment, including contribution thresholds, the “do no significant harm” principle and minimum social safeguards. Participants were briefed on reporting formats and international standards such as GRI, ISSB and TCFD, along with practical steps to ensure consistency and regulatory compliance.
