Lahore – June 28, 2025: In a bold step toward sustainable development, the Punjab government has allocated Rs795 billion for a climate-resilient infrastructure and development strategy in the fiscal year 2025–26 — the largest-ever climate-focused public investment by a provincial government in Pakistan.

According to official documents and policy planners, the climate allocation spans 14 departments, focusing on adaptation, risk reduction, and long-term resilience against floods, droughts, air pollution, and urban heatwaves.

Key Areas of Climate Investment

The bulk of the funding will support:

• Water conservation and irrigation modernization
• Afforestation and green urban spaces
• Early warning systems and disaster preparedness
• Climate-resilient housing and infrastructure projects
• Energy transition and clean public transport systems

Over Rs100 billion is dedicated to smart agriculture to protect crops from erratic weather patterns and water shortages.

Departments Involved in Climate Spending

The 14 departments contributing to the climate budget include:

• Irrigation, Agriculture, Housing, Urban Development
• Forest, Health, School Education, Livestock, and Energy

Each department has identified specific climate-sensitive projects in consultation with the Planning & Development Board (P&D) and Punjab Climate Change Department.

“This isn’t a one-off initiative. We are mainstreaming climate resilience into all tiers of development planning,” said a senior P&D official.

International Backing and Monitoring

Punjab’s climate plan has received technical assistance from international partners, including the World Bank, Asian Development Bank, and GIZ Germany, especially in aligning with Sustainable Development Goals (SDGs) and the Paris Agreement.

The government also announced a Climate Budget Tagging system to ensure transparency and traceable expenditure across all departments.

Experts Caution on Execution

Environmental experts and economists have welcomed the ambitious allocation but warned:

• Execution must be transparent and backed by strong monitoring
• Funds should not be diverted to routine development disguised as climate action
• Community-level participation is crucial to ensure equitable and lasting impact

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