Dr Shezra Mansab proposes climate funds, clean energy incentives and tax relief for renewables

ISLAMABAD, (APP - UrduPoint / Pakistan Point News - 17th Jun, 2026) Minister of State for Climate Change and Environment Coordination Dr Shezra Mansab Ali Khan Kharal on Wednesday proposed the establishment of dedicated Federal and provincial climate funds, with special allocations for highly climate-vulnerable regions, including Sindh and Khyber Pakhtunkhwa.

Participating in the National Assembly budget debate, she also recommended a mandatory climate reinvestment mechanism, suggesting that at least 25 percent of climate-related revenues be earmarked for adaptation and mitigation projects.

She suggested the government to reduce or eliminate taxes on solar panels, battery storage systems and other renewable energy equipment to accelerate the transition towards clean energy.

Highlighting the budget’ she said a billion of rupees had been set aside for 43 hydropower projects, describing it as the largest single-year investment in clean energy.

She said major initiatives included the Diamer-Bhasha Dam, Dasu Dam, and a Karachi water supply project, for which Rs10 billion had been allocated.

She stressed that water security was directly linked to national security and called for increased investment in dams and reservoirs to meet long-term water needs.

On the broader economic situation, she said the government had inherited a fragile economy but said that ongoing reforms had contributed to stabilisation.

She said foreign exchange reserves had improved from critically low levels, inflation had declined from a peak of 38 percent, and growth had been restored.

She added that the size of the economy had expanded to $452 billion, with per capita income rising and inflation projected at around 6.7 percent in 2026.

She added that the policy rate had been reduced from 22 percent to 11 percent, improving credit access for businesses and households.

On external accounts, she said foreign exchange reserves had increased to $17.

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2 billion, supported by remittances, IT exports and external inflows, strengthening import cover.

She added that credit rating agencies had upgraded Pakistan’s outlook, reflecting improved macroeconomic stability.

She also referred to housing and privatisation initiatives, describing them as part of broader structural reforms.

Turning to climate policy, she said the budget represented a milestone in Pakistan’s climate fiscal framework, pointing to initiatives such as the Green Pakistan programme, green skills development and urban resilience strategies.

The Minister also hailed the expected signing of the Islamabad Peace Accord in Switzerland, describing it as a landmark diplomatic development and evidence of a “paradigm shift” in Pakistan’s global standing.

She expressed gratitude to Prime Minister Shehbaz Sharif, saying he had “led from the front” in advancing diplomatic efforts.

She also acknowledged Field Marshal Syed Asim Munir, praising his continuous engagement alongside the civil leadership, and Deputy Prime Minister Ishaq Dar for consistent diplomatic efforts.

She said recent developments reflected a significant change in Pakistan’s international perception, crediting coordinated diplomacy and sustained engagement at the highest levels.

According to her, Pakistan’s recent diplomatic activity had placed the country at the centre of global attention and earned appreciation from international leaders.

She said a major crisis had been averted that could have escalated into a broader global conflict, calling it a notable achievement of statecraft.

Rejecting past narratives of isolation, she said recent progress had repositioned Pakistan as an active voice for peace.

She added that international engagement, including reactions on global platforms, demonstrated growing recognition of Pakistan’s diplomatic role.

APP/zah-sra