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Economic Aspects | Natural Resource Aspects | Institutional Aspects | Social Aspects |Pakistan

ECONOMIC ASPECTS OF SUSTAINABLE DEVELOPMENT IN PAKISTAN

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INTERNATIONAL COOPERATION

Decision-Making: Coordinating Bodies   

The Ministry of Environment, Local Government and Rural Development is responsible for policy decisions on various issues concerning the environment. The Pakistan Environment Protection Council (PEPC) also exists in the Ministry under the Chairmanship of the Prime Minister. Some of the major functions of the PEPC include enforcement of the Pakistan Environmental Protection Act, 1996; and the formulation of National Environmental Policies. In order to promote environmental protection, the Government created the federal Ministry of Environment, Local Government and Rural Development and its technical branches Pak-EPA; four Provincial Departments of Environment, and EPAs. To cope with the environmental situation, EPAs need to be strengthened and well equipped. 

Decision-Making: Legislation and Regulations 

No information is available.

Decision-Making: Strategies, Policies and Plans  

No information is available.

Decision-Making: Major Groups Involvement

The International Union for Conservation of Nature (IUCN) Pakistan operations have focused on the development and the implementation of the National Conservation Strategy (NCS). The World Wide Fund (WWF), Sustainable Development Policy Institute (SDPI) and the Rotary Club are other major groups.

Programmes and Projects 

No information is available.

Status 

No information is available.

Challenges

No information is available.

Capacity-building, Education, Training and Awareness-raising 

No information is available.

Information 

No information is available.

Research and Technologies 

No information is available.

Financing 

In order to accelerate sustainable development, both local financing and foreign funding are arranged through the Ministry of Finance and Economic Affairs Division. In addition, bilateral and regional cooperation to finance environmental projects is also undertaken. However, the availability of foreign funding has been a problem in the past.

Cooperation

To meet the challenges of environment and development in Pakistan, the Government has decided to support and establish a viable and working new global partnership in the social, economic and environmental dimensions. Pakistan began paying priority attention to the protection of the environment soon after the Conference on Human Environment in Stockholm in 1972. As Chair of G-77, Pakistan played a leading role at the UN Conference on Environment and Development (UNCED) in Rio in 1992. Pakistan is one of a handful of developing countries to prepare a comprehensive National Conservation Strategy (NCS) in 1992 in cooperation with national and international organizations. To achieve the goal of environmental protection, Pakistan has signed international agreements, i.e., the UN Framework Convention on Climate Change (UNFCCC), 1994; Montreal Protocol on Ozone Depleting Substances; Basel Convention on Biological Diversity, 1994; International Convention to Combat Desertification, 1994. Pakistan has been quite successful in cooperating with international agencies, e.g., UNIDO, EU, UNDP, UNEP, UNESCAP, ECO, SAARC. SACEP.

In the regional context, Pakistan is working in close cooperation with regional organizations such as the South Asia Association for Regional Cooperation (SAARC), South Asia Cooperative Environment Programmes (SACEP), Economic Cooperation Organization (ECC), United National Economic and Social Commission for Asia and the Pacific (UNESCAP) and the United Nations Environment Programme (UNEP). A number of joint activities have been initiated and are being implemented successfully. To protect the marine environment from land-based activities, a regional Seas Programme of UNEP/SACEP is underway. Pakistan participated in the environmental Management Seminar organized by SACEP in Sri Lanka.

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This information is based on Pakistan's submission to the 5th Session of the United Nations Commission on Sustainable Development, April 1997. Last update: 1 April 1997

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TRADE

Decision-Making: Coordinating Bodies   

No information is available.

Decision-Making: Legislation and Regulations 

No information is available.

Decision-Making: Strategies, Policies and Plans  

No information is available.

Decision-Making: Major Groups Involvement

No information is available.

Programmes and Projects 

No information is available.

Status 

No information is available.

Challenges

No information is available.

Capacity-building, Education, Training and Awareness-raising 

No information is available.

Information 

No information is available.

Research and Technologies 

No information is available.

Financing 

No information is available.

Cooperation

In pursuance of the Uruguay Agreement, the World Trade Organization (WTO) has come into existence. The first Ministerial Conference of the WTP was held recently. Pakistan actively participated in the meeting.

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This information is based on Pakistan's submission to the 5th Session of the United Nations Commission on Sustainable Development, April 1997. Last update: 1 April 1997.

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CHANGING CONSUMPTION PATTERNS

Decision-Making: Coordinating Bodies   

One of the fourteen core issues in the National Conservation Strategy (NCS) is Increasing Energy Efficiency. In 1987, the Ministry of Environment, Urban Affairs, Wildlife and Forestry set up the autonomous Energy Conservation Centre (ENERCON), responsible for energy conservation and energy efficiency.

Decision-Making: Legislation and Regulations 

No information is available.

Decision-Making: Strategies, Policies and Plans  

Annual Energy Conservation Targets in Percentage (1996-2000):

Sector 1996-1997 1997-1998 1998-1999 1999-2000
Industry 1.6% 3.3% 4.6% 5.5%
Transport t 1.5% 3.0% 5.5% 5.1%
Buildings 1.1% 2.3% 3.2% 3.8%
Agriculture 1.2% 2.5% 3.4% 4.2%

Decision-Making: Major Groups Involvement

No information is available.

Programmes and Projects 

The Ministry of Environment, Urban Affairs, Wildlife and Forestry and ENERCON have initiated programmes to promote efficient energy use. Pilot projects in Karachi and Faisalabad have been proposed. These projects will produce 500 to 1000 kilowatts. The Government has also implemented a programme to audit the energy efficiency of water pumps. The programme includes training of local workshop mechanics, testing facilities and pilot projects.

Status 

Energy savings of US$ 18 million have already been realized. ENERCON has conducted 52 detailed energy audits and 85 preliminary audits.

Challenges

Inefficient use currently results from essentially three sources:

Capacity-building, Education, Training and Awareness-raising 

ENERCON has developed a Home Energy Conservation Seminar targeted at housewives and working women. To date, more than 12,000 women have benefitted from the seminar. ENERCON has trained trainers who respond to requests from the women's organizations and educational institutions in the four provinces.

Information 

No information is available.

Research and Technologies 

ENERCON has been conducting data collection and field research. The knowledge which stems from this experience has served as the basis for training and public awareness programmes, including publications, seminars, workshops and advertisements in newspapers, radio and television. ENERCON has worked to identify opportunities which will yield over US$ 56 million in energy savings. 

Financing 

Domestic resources are being made available for a Five-year Multisectoral Energy Efficiency Investment Programme 1996-2001 (Rs. 93.5 million); a proposed Natural Gas project (Rs. 97 million), intended to be a joint investment from both public and private sectors; a municipal water pump programme (Rs. 158 million); and agricultural tubewell programme (Rs. 250 million); and a Lighting Efficiency Programme (Rs. 80 million).

Cooperation

In 1995-1996, ENERCON conducted jointly with the Energy Conservation Centre (ECC) Japan, UNIDO and UNDP a series of 9 Preliminary Energy Audits in Glass, Plastic Forming and Food Processing Industries. ENERCON has developed a Rs. 92 million five-year energy plan for lighting efficiency in commercial buildings on a national scale. This five-year plan was made in collaboration with the joint UNDP/World Bank Energy Sector Management Assistance Program (ESMAP).

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This information is based on Pakistan's submission to the 5th Session of the United Nations Commission on Sustainable Development, April 1997. Last update: 1 April 1997.

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FINANCING

Decision-Making: Coordinating Bodies   

No information is available.

Decision-Making: Legislation and Regulations 

Consideration is being given to the use of an effluent tax as a means of enforcing National Environmental Quality Standards. The precise modalities are under consideration.

Decision-Making: Strategies, Policies and Plans  

The financial philosophy behind the National Conservation Strategy is that of financial sustainability, meaning that a welfare economic surplus is to be expected, since the cost of the environmentally sound projects will be outweighed by the benefits in the long run.

Decision-Making: Major Groups Involvement

No information is available.

Programmes and Projects 

In general Pakistan has many, and is getting even more, aid-worthy projects which are relevant for the National Conservation Strategy (NCS). Since most of the projects in NCS are labour intensive, it is estimated that Pakistan stands to gain 80,000 jobs a year during the ten years of NCS

Status 

No information is available.

Challenges

In 1994, Pakistan was constrained by a weak fiscal capacity due to a narrow revenue base. Therefore it is unrealistic for the Government to impose more taxation for the financing of the implementation of the NCS.  Pakistan is faced with having to rely entirely on donor support for the first three to five of the ten years of the NCS. 

Capacity-building, Education, Training and Awareness-raising 

No information is available.

Information 

No information is available.

Research and Technologies 

No information is available.

Financing 

Recommendations have been made to redirect existing high-cost development programmes to fund 40% of the total NCS budget. The additional Rs. 90 million was to have come from the private sector, but because of the economic constraints, it may be difficult to meet this recommendation. Recommendations for raising domestic funding include: introduction of the Polluter Pays Principle and other taxation measures in various sectors; adjustment of projects, for example on water; encouragement of private investment, for example in "Conservation pays" projects like recycling paper; supplement lotteries, and fund-raising schemes.

One of the recommendations made in relation to international funding is the implementation of the debt-for-nature swaps, which would allow Pakistan to reduce its foreign debt by using the money for environmental conservation.

Cooperation

A Development Bank in Pakistan was found commercially unviable; therefore an off-shore Fund was recommended since it would have the necessary financial advantages, i.e. zero taxation, for attracting international investors. The Environmental Fund would have an Investment Advisory Company (IAC). The IAC would be composed of shareholders who provide the initial money US$5.0 million or 10% of the estimated requirements. The 90% would be private investors - local and foreign, and multilateral and bilateral institutions such as IBRD, IFC and the Asian Development Bank.

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This information is based on Pakistan's submission to the 5th Session of the United Nations Commission on Sustainable Development, April 1997. Last update: 1 April 1997.

For the Ministry of Finance and Economic Affairs, click here:
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For information on participating States in the Global Environment Facility, click here:
For information about issues and projects in Asia and and the Pacific from the World Bank, click here:

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TECHNOLOGY

Transfer of Environmentally Sound Technology

Decision-Making: Coordinating Bodies   

No information is available.

Decision-Making: Legislation and Regulations 

No information is available.

Decision-Making: Strategies, Policies and Plans  

No information is available.

Decision-Making: Major Groups Involvement

No information is available.

Programmes and Projects 

The Federation of Chambers of Commerce and Industry (FPCCI) has launched a five-year Environment Technology Programme for Industry (ETPI) with the support and assistance of the Government of the Netherlands. The main goal of the programme is to help Pakistani industries identify and implement the most economical pollution prevention and abatement technologies.

Pakistan is involved in a project called "Transfer of Technology for Sustainable Industrial Development" with the Swiss Government. The project is administered by the Pakistani Ministry of Environment, Urban Affairs, Forestry and Wildlife and will be carried out by the Sustainable Development Policy Institute (SDPI). It involves two phases:

Status 

The Government has encouraged the industrial sector to utilize clean production processes. For this purpose, various incentives are available to industry which include preferential treatment in loan facilities by banks and DFIs, and lower import tariffs on anti-pollution equipment. There has not been much headway on the adoption of environmental management systems because of the lack of awareness and the higher cost of ISO certification. However, the government is giving due importance to the matter and the proposal is under consideration to devise a mechanism so that PSI may be accredited to do ISO 14000 certification locally.

Challenges

No information is available.

Capacity-building, Education, Training and Awareness-raising 

No information is available.

Information 

No information is available.

Research and Technologies 

No information is available.

Financing 

No information is available.

Cooperation

The Swiss government has granted US$1 million for the implementation of the second phase of the Pak-Swiss cooperation programme. The SDPI was supported in enhancing capacity and expertise concerning technology transfer by the Norwegian Agency for International Cooperation (NORAD), the Canadian International Development Agency (CIDA) and the Swiss Development Corporation (SDC). The Environment and Urban Affairs Division and Pakistan Environmental Protection Agency have been supported in capacity building by a World Bank funded project on Environmental Protection and Resource Conservation.

Pakistan is a member of APO and also benefits from the facilities available through UNIDO, UNEP, and UNDP.

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Biotechnology

Decision-Making: Coordinating Bodies   

A special institutional body, the National Institute for Biotechnology and Genetic Engineering, (NIBGE) is in charge of this sector.  It had a professional staff of 68 in 1994.  NIBGE has an evaluation committee which yearly reviews programmes and makes suggestions for improvements. 

Decision-Making: Legislation and Regulations 

A Biotechnology Code of Conduct for the Release of Organisms into the Environment has been prepared for national adoption. The Code of Conduct has been modelled from the code of conduct prepared by UNIDO. The enforcement of the code of conduct will be in the hands of the Biosafety Committee which will check all handling of Genetically Modified Organisms (GMO). The procedure contains principles on biotechnology risk assessment and risk management.

Decision-Making: Strategies, Policies and Plans  

No information is available.

Decision-Making: Major Groups Involvement

No information is available.

Programmes and Projects 

No information is available.

Status 

No information is available.

Challenges

No information is available.

Capacity-building, Education, Training and Awareness-raising 

Workshops are being organized on a quarterly basis to enhance awareness and understanding of biotechnology issues.

Information 

No information is available.

Research and Technologies 

No information is available.

Financing 

In 1994, the national budget allocated to NIBGE amounted to US$ 0.36 million. 

Cooperation

NIBGE has received support from the International Atomic Energy Agency and the U.S.A. NIBGE tries to involve industry in its work by inviting management to discuss marketing possibilities for environmental protection.  Traditional methods and knowledge of indigenous peoples are being accommodated in the policies of NIBGE.

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This information is based on Pakistan's submission to the 5th Session of the United Nations Commission on Sustainable Development, April 1997. Last update: 1 April 1997.

Click here to link to the Biosafety Information Network and Advisory Service (BINAS), a service of the United Nations Industrial Development Organization (UNIDO), which monitors global developments in regulatory issues in biotechnology.
Click here to go to the Web Site of UNEP's International Register on Biosafety.
Click here for the International Centre for Genetic Engineering and Biotechnology Biosafety WebPages

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INDUSTRY

No information is available.

 

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TRANSPORT

No information is available.

 

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SUSTAINABLE TOURISM

No information is available.

 

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