Pakistan may allocate Rs2.78 billion for climate change in budget 2026-27

ISLAMABAD – Pakistan, one of the countries most affected by climate change, is set to allocate Rs2.78 billion in the proposed federal budget for the financial year 2026–27 to address the growing environmental challenges. According to budget documents, the Climate Change Division has not introduced any new development projects for the upcoming fiscal year. The proposed allocation will be used to finance three ongoing schemes. These three projects, with a total estimated cost of Rs123.51 billion, are expected to utilize around Rs35 billion by June 30, 2026. For the next financial year, a further Rs2.78 billion has been proposed for their continuation. Under the proposed budget, Rs2.49 billion is earmarked for the Green Pakistan Programme, while around Rs297 million is allocated for improving the ministry’s technical capacity. Only Rs1.6 million has been suggested for the Green Skills initiative under the Sustainable Development Goals framework. Pakistan continues to face severe climate-related risks, including unusually heavy monsoon rains, glacial lake outburst floods, heatwaves, forest fires, and significant human and financial losses. Reports indicated that more than 1,000 lives were lost in last year’s floods. Although the government, in coordination with provinces, prepared a 245-day monsoon response plan and announced the installation of an early warning system, several measures have yet to be fully implemented.