Islamabad: The federal government has allocated Rs2.478 billion under the Public Sector Development Programme (PSDP) 2026-27 for ongoing initiatives aimed at strengthening climate resilience, promoting green entrepreneurship, and improving environmental planning across Pakistan.
The funding, announced on Friday, covers four key projects under the Climate Change and Environmental Coordination Division. The initiatives focus on sustainable development, institutional capacity building, and urban climate risk management.
According to Beyond Time News, the allocations reflect the government’s continued emphasis on addressing environmental challenges and supporting long-term climate adaptation strategies.
Major Funding for Green Pakistan Programme
The largest share of the allocation, Rs2.336 billion, has been set aside for the Up-scaling of the Green Pakistan Programme (Revised).
The project, which has already been approved by the Executive Committee of the National Economic Council (ECNEC), carries a total estimated cost of Rs122.147 billion.
Officials said that significant spending has already been recorded under the programme, with further expenditures expected before the end of June 2026. The remaining financial commitment, known as throw-forward liability, stands at over Rs41 billion.
The initiative aims to support environmental restoration efforts, expand green cover, and promote sustainable land management practices.
Strengthening Climate Governance and Institutional Capacity
Another Rs40.661 million has been allocated for strengthening technical capacities within the Ministry of Climate Change and Environmental Coordination.
The revised project, approved by the Departmental Development Working Party (DDWP), has a total cost of Rs916.028 million.
Authorities said the initiative is designed to improve institutional performance, enhance technical expertise, and support policy implementation related to environmental protection.
According to Beyond Time News, improving governance capacity is seen as a critical step in ensuring effective climate policy execution.
Support for Green Skills and Entrepreneurship
The government has also earmarked Rs51.600 million for a project focused on promoting green entrepreneurship and innovation.
Titled “Green Skills for Sustainable Development,” the initiative aims to equip individuals with skills needed for environmentally sustainable businesses and technologies.
The project, approved by the DDWP, has a total cost of Rs450 million. Officials noted that the entire cost remains as future financial liability, indicating that implementation is still in early stages.
Experts say such initiatives are increasingly important as countries shift toward low-carbon and climate-resilient economic models.
Urban Planning and Disaster Risk Reduction
A further Rs50 million has been allocated for the development of a national urban strategy.
The project focuses on reducing the impacts of urban flooding, droughts, and climate-related disasters through improved spatial planning and risk management guidelines.
Approved by the Central Development Working Party (CDWP), the initiative has a total estimated cost of Rs106.401 million.
Officials said the project aims to strengthen urban resilience by integrating climate risk considerations into city planning and infrastructure development.
Read more:Government, PPP Continue Budget Talks as PSDP Funding Remains Key Focus
Overall Climate Development Portfolio
The Climate Change and Environmental Coordination Division’s ongoing development portfolio has a total approved cost of Rs123.619 billion.
Up to June 30, 2026, estimated spending stands at Rs35.023 billion, while future financial obligations are projected at Rs42.771 billion.
The PSDP 2026-27 allocation of Rs2.478 billion forms part of this broader investment framework aimed at addressing environmental and climate-related challenges.
According to Beyond Time News, these investments are intended to support Pakistan’s transition toward more sustainable and climate-resilient development pathways.
Growing Focus on Climate Resilience
Pakistan continues to face increasing climate-related risks, including floods, heatwaves, and water scarcity. In this context, government planners have emphasized the importance of integrating climate resilience into national development priorities.
The latest allocations suggest a continued shift toward green infrastructure, environmental governance, and disaster risk reduction strategies.
Conclusion
The PSDP 2026-27 allocations highlight Pakistan’s ongoing commitment to climate-focused development projects, with funding directed toward environmental restoration, institutional strengthening, and urban resilience.
While the financial scale remains relatively modest compared to the overall development budget, officials say these initiatives are part of a broader strategy to address long-term climate vulnerabilities.
Frequently Asked Questions
How much funding has been allocated for climate projects in PSDP 2026-27?
The government has allocated Rs2.478 billion for four ongoing climate-related projects.
Which project received the largest share of funding?
The Green Pakistan Programme received the largest allocation of Rs2.336 billion.
What is the focus of the green skills project?
It aims to promote green entrepreneurship and sustainable development skills.
Why is urban planning included in climate projects?
To reduce risks from flooding, droughts, and climate-related disasters through better spatial planning.
What is the overall cost of the climate development portfolio?
The total approved cost is Rs123.619 billion.
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