Pakistan's Climate Budget Cuts Critical Funding Amid Escalating Environmental Challenges

Pakistan's federal budget for the upcoming fiscal year has reduced spending on climate action even as the country faces a growing threat from extreme weather and glacial melt, according to several reports from Dawn, one of the country's leading English-language dailies. The cuts have drawn sharp criticism from senators and policy experts, who warn that the reductions are out of step with the country's environmental vulnerabilities.

The climate ministry's allocation under the Public Sector Development Programme (PSDP) has been cut from Rs3.5bn to Rs2.48bn, as reported by two of the sources. The figures were confirmed in a Senate committee meeting presided over by Senator Sherry Rehman, who chairs the standing committee on climate change. Calling the reduction "shocking," Rehman warned that Pakistan is entering a "period of heightened environmental vulnerability" marked by worsening climate extremes should address was quoted by one of on Thursday. The committee also noted that the ministry's capacity to utilise already allocated funds is limited.

Wider Cuts Across Climate Allocations

A more detailed breakdown of the budget, reported by another article, shows reductions across almost all climate-related funding heads for the next fiscal year. Mitigation funds have been slashed from Rs603 billion to Rs124 billion, while adaptation money has been reduced from Rs85 billion to Rs70 billion. The "green component" of subsidies has also faced cuts, with the energy sector allocation declining from Rs529 billion to Rs423 billion. They food, industry, transport, and agriculture sectors also saw reduced allocations.

This is not a universal cut, however, as disaster management appears to have been spared. The budget includes a new disaster-tagging initiative, with Rs19 billion earmarked for reconstruction, while recovery and rehabilitation funds have risen from Rs1.1 billion to Rs21 billion.

Experts have questioned the approach. Giovanni Maurice Pradipta, a policy adviser at the global NGO Germanwatch, noted that Pakistan's vulnerability tells us adaptation and resilience should receive at least as much attention as mitigation. "Given the country's exposure to floods and heat waves," he said, "it's all the more important to prepare developing countries' budgets and fiscal space for climate action." Malik Amin Aslam, a former climate change minister, called the budget a "suicidal story" and said the funding stream for addressing climate adaptation issues, specifically heat stress, is "totally missing."

Key Claims

  • PSDP Allocation: The climate ministry's Public Sector Development Programme allocation is reduced from Rs3.5 billion to Rs2.48 billion, as reported by two of the three sources.
  • Mitigation Funds: Mitigation funds are reduced from Rs603 billion to Rs124 billion, according to a single source.
  • Adaptation Funding: Adaptation money is slashed from Rs85 billion to Rs70 billion, also from a single source.
  • Glacial Lakes: Suparco has identified 130 potentially dangerous glacial lakes in Pakistan's northern regions, with 24 currently unfrozen and under observation.
  • Temperature Anomaly: Global temperatures in June 2026 were approximately 1.47 degrees Celsius above historical averages, while Pakistan's temperatures were around 1.56 degrees Celsius above baseline levels, as reported by one source.
  • 2022 Flood Losses: The devastating floods of 2022 caused losses estimated at over $30 billion, according to a single source.

Perspectives

Lawmaker's View (Senator Sherry Rehman): The cuts are "shocking" and come at a time when climate risks are "increasing, not decreasing." She also questioned the need for perists, institutions, such as the proposed Climate Authority, which she sees as bureaucratic overlap.

Expert Criticism: Giovanni Maurice Pradipta (Germanwatch) argues that adaptation and resilience deserve at least as much attention as mitigation given Pakistan's flood and heatwave vulnerability. Malik Amin Aslam called the budget a "suicidal story," pointing to the absence of specific funding for heat adaptation.

Concern Over Climate Outlook: Sources report that Suparco has issued warnings about El Niño conditions potentially bringing weaker monsoon rains, more frequent heat waves, droughts, and warmer winter — all threats to agriculture, water supplies, and public health. The long-term outlook for glacier melt the adds to concerns over downstream river flows.

Looking Ahead

With the budget now before parliament, the debate is likely to intensify. Lawmakers, scientists, and civil society are calling for transparency and structural reforms, including the reallocation of funds from other sectors to meet the climate challenge. The coming months, at its that could test already stretched for Pakistan's economy and its most disadvantaged communities.