Month: July 2026

Islamabad: Pakistan’s Resilience and Sustainability Facility (RSF) with the International Monetary Fund (IMF) represents an important shift in recognizing climate change as a macroeconomic challenge, but substantial reforms are still needed to ensure global climate finance genuinely supports resilience and sustainable development.

This was the crux of a discussion at the launch of a policy study conducted jointly by Dr Asad Sayeed, Executive Director of Collective for Social Science Research (CSSR), Karachi, and Dr Khalid Waleed, Research Fellow at Sustainable Development Policy Institute (SDPI) here.

The study critically assessed Pakistan’s $1.4 billion IMF Resilience and Sustainability Facility and its relationship with the IMF’s Extended Fund Facility (EFF), said a press release.

Opening the discussion, Dr Sajid Amin Javed, SDPI’s Deputy Executive Director (Research), said the study fills an important policy gap by critically examining Pakistan’s first engagement with the IMF’s climate financing facility. He noted that although the government primarily viewed the RSF as an additional source of external financing during any foreign exchange crisis, the facility carries broader implications for climate resilience and sustainable development that require careful assessment.

Dr. Sajid observed that it was encouraging to see international financial institutions, particularly the IMF, introducing initiatives such as the RSF, which reflects the growing recognition that climate change has far-reaching macroeconomic implications, from public debt sustainability to long-term development planning. However, he stressed that considerable work remains to ensure such initiatives genuinely strengthen resilience rather than merely extending conventional stabilization programmes. This also underscores the need to reconfigure the global financial architecture to effectively respond to climate challenges, he said.

He further argued that climate-related financing initiatives should be harmonized with existing IMF programmes to avoid contradictory policy outcomes. According to him, while climate resilience is being promoted through one financing window, other IMF-supported reforms, including taxes on solar energy and fiscal measures, may simultaneously discourage renewable energy adoption and weaken long-term sustainability objectives.

Presenting the study findings, Dr Asad Sayeed said Pakistan’s recurring balance-of-payments crises, climate vulnerability and energy transition challenges have converged, making climate finance a critical policy issue. He said the study finds that the IMF’s RSF is primarily designed to reinforce macroeconomic stabilization rather than finance genuine climate adaptation and resilience.

Dr. Asad noted that although Pakistan falls among the countries most vulnerable to climate change, the financial support available under the RSF remains insignificant compared to the country’s adaptation and energy transition requirements. He maintained that climate financing should move beyond liquidity support and address the structural drivers of climate vulnerability.

Dr Khalid Waleed said the study identified significant contradictions between the IMF’s Extended Fund Facility and the Resilience and Sustainability Facility. While both programmes emphasize macroeconomic reforms, measures such as higher electricity tariffs, subsidy rationalization and taxation of renewable energy technologies undermine affordability and energy justice, he said.

Dr Khalid observed that the burden of these reforms falls disproportionately on low- and middle-income households despite Pakistan contributing only a negligible share of global greenhouse gas emissions. He added that negotiations and implementation of the RSF have largely done under the Ministry of Finance, while the Ministry of Climate Change, the Climate Change Authority and provincial governments have had only limited involvement despite being central stakeholders in climate policy.

He noted that the study found little evidence of comprehensive distributional impact assessments examining how IMF-supported reforms affect urban middle-income households, small farmers and other vulnerable groups, raising concerns over the social equity of the reform package.

The study recommends that revenues generated through the carbon levy should be ring-fenced exclusively for climate adaptation and mitigation projects. The researchers argue that such a mechanism would improve transparency and ensure climate-related taxes directly finance climate action.

The study also recommends removing fiscal barriers to renewable energy. It further calls for treating solar technologies and battery storage as strategic capital goods to accelerate renewable energy adoption and improve long-term energy security.

Islamabad: The government is planning to establish a Rs 9.8 billion footwear industrial hub near Lahore in a bid to attract foreign investment. According to official documents available with Wealth Pakistan, the proposed project will be sponsored by the Ministry of Industries and Production, with the Small and Medium Enterprises Development Authority (SMEDA) as the lead executing agency. The Board of Investment (BoI) and provincial industry departments will act as lead partners.

Pakistan’s footwear sector is technically capable but remains concentrated in informal and semi-organised production units, particularly around Lahore. The absence of a dedicated footwear industrial zone has resulted in fragmented manufacturing, high logistics costs, limited technology upgrading, and weak capacity to attract large-scale domestic and foreign investment.

The planned hub is intended to address these structural gaps by creating a purpose-built industrial platform where investment, technology, compliance services, and common infrastructure can be co-located.

The project objective is to establish a specialised industrial hub for footwear manufacturing near the Lahore cluster, providing a compliance-ready platform for technology adoption, production expansion, and private investment attraction.

The total Public Sector Development Programme (PSDP) requirement has been estimated at Rs9.8 billion, with no foreign exchange component.

The proposed phasing includes Rs280 million in FY2026-27, Rs5.32 billion in FY2027-28, Rs2.8 billion in FY2028-29, and Rs1.4 billion in FY2029-30. The project is expected to be completed over five years.

The scope of work includes feasibility studies and site selection, master planning, construction of internal roads, boundary walls, electricity distribution networks, gas supply, water and sanitation facilities, drainage systems, common utility buildings, green spaces, effluent management systems, and common facility areas.

A major component will be the establishment of a technology adoption platform, including a technology demonstration centre equipped with modern cutting lines, injection moulding equipment, and automated stitching machinery. This is expected to support technology transfer to occupant firms and help manufacturers move towards higher-value and export-oriented production.

The project also proposes shared testing and quality control laboratories, storage for chemical and material inputs, safety facilities, buyer meeting spaces, showroom facilities, and other common services.

Under the implementation arrangement, SMEDA will lead project design, procurement, and technical coordination. The BoI will handle investor facilitation, allotment policy development, incentive packages, registration, and one-window service provisions for hub occupants. The provincial industry departments will coordinate land acquisition, provincial approvals, and interaction with the local government.

A high-level steering committee, comprising the Ministry of Industries and Production, SMEDA, BoI, and the provincial government, will provide executive oversight.

The expected outcomes include a fully developed and operational footwear industrial hub, organised industrial plots, shared facilities, increased private investment, expanded production capacity, improved access to technology and compliance services, and a measurable contribution to footwear export growth targets.

Islamabad: For more than six decades, the Indus Waters Treaty (IWT) has served as the cornerstone of Pakistan’s water security, providing the certainty needed to develop the Indus Basin Irrigation System and sustain the country’s agriculture, hydropower generation and economic growth.

Widely regarded as one of the world’s most enduring transboundary water agreements, the Treaty has also played an important role in maintaining regional stability.

India’s decision in May 2025 to hold the treaty in abeyance, suspend hydrological data sharing and accelerate upstream infrastructure development has introduced significant uncertainty into Pakistan’s water management framework. Beyond legal and diplomatic concerns, the growing ability to influence the timing and predictability of river flows, particularly in the Chenab River poses a serious challenge to Pakistan’s long-term water, food, energy and economic security.

Lt Gen (r) Muhammad Saeed, Chairman Water and Power Development Authority (WAPDA) said Pakistan’s hydropower system, irrigated agriculture and much of its economic development have evolved on the foundation of uninterrupted and predictable flows from the western rivers. The treaty has also contributed significantly in the overall strategic stability of South Asia.

In the recently concluded Water Convention under UN arrangements at Geneva, he said nation states have been asked to strengthen governance and transparency on shared river basins in pursuit of the ‘One Water-One Vision’ principle.

‘India, on the contrary, is moving entirely in the opposite direction,’ he said, adding that regardless of the legal debate concerning the Indian decision, its strategic consequences for Pakistan are very serious.

‘It marks a departure from more than six decades of treaty-based water cooperation and introduces uncertainty into a river system that guarantees Pakistan’s water, food and energy security,’ he said.

The WAPDA Chairman pointed out that since May 2025, India continued to accelerate the development of upstream infrastructure on the western rivers, while inviting bids for fast-track implementation of additional projects, including the planned expansion of Ranbir Canal and the Chenab-Beas Link Tunnel.

He warned that considered collectively, these developments could severely threaten Pakistan’s long-term water security.

He also mentioned that India had suspended sharing of hydrological data for the Western Rivers with Pakistan’s Commissioner for Indus Waters, contrary to the data-sharing obligations envisaged under the IWT. During the 2025 flood season, the absence of timely river flow information adversely affected Pakistan’s flood forecasting and emergency preparedness, increasing risks to human life, critical infrastructure, and livelihoods.

‘Such actions are inconsistent with humanitarian principles, undermine international water-course cooperation and violate the fundamental objective of safeguarding populations from transboundary flood hazards. Moreover, Indian actions limit Pakistan’s ability of realising Sustainable Development Goals (SDGs) 6.5, 6.5.1 and 6.5.2, which are globally shared objectives,’ he said.

The Chairman WAPDA said as a lower riparian state, Pakistan’s irrigation system, reservoirs, agriculture, growing population, and industrial development depended heavily on reliable and predictable river flows originating upstream.

‘Any uncertainty in the quantity or timing of these flows presents a strategic challenge that extends far beyond conventional water management, directly affecting national water, food, energy, environmental, and economic security,’ he said.

The geographical configuration of Indus Basin makes the reliability and predictability of flows in Chenab River indispensable for safe and efficient operation of IBIS. The non-availability of river flow data from upstream significantly weakens Pakistan’s ability to regulate canal diversions, manage floods, and issue timely warnings, he added.

‘In the event of extreme hydrological conditions, the absence of such information can endanger human lives, damage critical infrastructure, and increase economic losses,’ he said.

The emerging challenge is the cumulative capability created by multiple upstream projects to increasingly regulate the quantity, timing and predictability of flows entering Pakistan.

‘Carrying an average annual flow of 25 million acre-feet (MAF) at Marala, it irrigates nearly 10 million acres through the Marala, Khanki, Qadirabad, Trimmu and Punjnad Barrages. These command areas constitute one of Pakistan’s most productive agricultural regions, contributing significantly to national production of wheat, rice, sugarcane and other strategic crops while supporting millions of rural livelihoods,’ he said.

Federal Minister for Information and Broadcasting Attaullah Tarar called Pakistan’s right to water under the Indus Waters Treaty (IWT) as its “inalienable right” and ‘a lifeline that the country will protect’.

Tarar in a post on X said India’s unilateral attempt to hold the IWT in abeyance had “no legal or moral standing” describing the move as a failed attempt that had caused India “nothing but embarrassment.”

He said the action was a clear violation of the “One Water-One Vision” principle endorsed by the United Nations.

Barrister Danyal Chaudhry, Federal Parliamentary Secretary for Information and Broadcasting terming water as ‘national security’ said the challenges surrounding the Indus Waters Treaty underscore the importance of upholding international commitments, ensuring transparency and pursuing dialogue over unilateral actions.

‘Pakistan remains steadfast in protecting its legitimate water rights while advancing sustainable management of this vital resource,’ he said.

Senator Dr. Afnan Ullah Khan said the Chenab River’s strategic importance stems from the fact that most of its catchment lies in India before entering Pakistan. As Pakistan has limited alternative sources to compensate for upstream regulation, the reliability and predictability of Chenab flows are critical to the stable operation of the Indus Basin Irrigation System.

MPA Farah Khan Advocate said despite the Indus Waters Treaty, India never misses an opportunity to play with the lives of millions. Even in water, they show malice undermining humanity and international law. This is another stark example of how they weaponize water against a neighbor, Pakistan.

‘Water is not a weapon; it is a shared lifeline. For decades, the Indus Waters Treaty has safeguarded food security, livelihoods, and regional stability. Yet, India repeatedly undermines these obligations: suspending treaty terms, withholding vital hydrological data, and disrupting predictable river flows,’ she said.

Michael Kugelman, policy expert on South Asia said Pakistan is a highly water-insecure country and is heavily dependent on the waters of the Indus River and its tributaries that flow into Pakistan from India.

Until last year, he said, when India suspended the Indus Waters Treaty, the treaty’s dispute-resolution mechanisms had been remarkably successful. Ultimately, both sides accepted the outcomes of the mediation processes provided for under the treaty, demonstrating that its institutional framework was capable of managing disagreements peacefully.

Kugelman said one important feature of the Indus Waters Treaty is that it was co-signed by the World Bank, giving it a significant degree of international legitimacy. This has prompted discussion about whether the international community, including the World Bank, could or should play a role in addressing the current situation.

He said the fundamental principle underlying the treaty is that neither country should seek to withdraw from or suspend it unilaterally. If either party is dissatisfied, the treaty envisages resolving disputes bilaterally through dialogue and the mechanisms already established within the agreement, rather than abandoning its commitments, he added.

Dr. Roxolana Zig³n, Head of the Scientific Centre for International and Strategic Studies at UWC, Moscow said the Indus Waters Treaty of 1960 remains fully valid and legally binding. She said that any continued unilateral suspension of the treaty could have serious security and humanitarian implications not only for Pakistan and India but for the wider South Asian region.

She described the Indus Waters Treaty as one of the most successful and durable transboundary water-sharing agreements in history, adding that it continues to serve as a global model for the peaceful management of shared water resources.

Nazar Ul Islam, a journalist covering important national issues said legal battles aside, suspending the Indus Waters Treaty could have far-reaching consequences.

He said as Pakistan’s population continues to grow, water uncertainty may increasingly threaten the country’s food production and energy security.

Gabriel Eckstein, Law professor and President of International Association for Water Law in his post on X also endorsed Pakistan’s viewpoint highlighting the significance of Indus Waters Treaty for Pakistan and also for the entire region.

Islamabad: The Securities and Exchange Commission of Pakistan (SECP) Commissioner Muzzafar Ahmed Mirza has urged the business and industrial community to formalize their businesses through corporatization to improve governance, enhance transparency, and access new financing and growth opportunities.

Addressing the Sialkot Chamber of Commerce and Industry, Mirza said that SECP is simplifying regulatory procedures, reducing compliance requirements, and expanding digital services to make incorporation and corporate compliance easier for businesses.

He said corporatization provides enterprises, including family-owned businesses, with greater credibility, improved governance frameworks, and better access to investment and formal financing channels.

Speaking on the occasion, SECP Commissioner Muhammad Ali Farid Khwaja highlighted the importance of promoting an investment culture in Pakistan and encouraged the business community and youth to participate in the capital market through informed investment decisions.

He said increased participation of local investors would strengthen financial markets, support wealth creation, and contribute to economic development.

The Commissioners reaffirmed SECP’s commitment to developing a transparent, digitally enabled corporate sector and promoting wider participation of businesses and investors in Pakistan’s economic growth.

Islamabad: The Islamabad High Court (IHC) on Monday referred a petition challenging the auction notices issued for Bahria Town properties to the office of the Chief Justice for the constitution of an appropriate bench.

The matter came up before Justice Arbab Muhammad Tahir, who observed that he had previously heard the dispute in an intra-court appeal (ICA) and, therefore, considered it appropriate that the case be placed before another bench.

During the hearing, counsel for the petitioner, Farooq H. Naek, informed the court that an earlier writ petition on the matter had already been decided by former Chief Justice Sarfraz Dogar.

Justice Tahir also questioned why NAB Prosecutor Rafi Maqsood was present at the rostrum despite no notice having been issued to the bureau. The prosecutor responded that he was available to assist the court if required.

The court further inquired whether an intra-court appeal had previously been filed in the matter. The NAB prosecutor informed the court that the issue was currently pending before the Supreme Court and that a similar plea had earlier been dismissed by an IHC division bench.

Justice Tahir observed that since the incumbent Chief Justice had previously dealt with matters relating to the case, it would be appropriate for the petition to be placed before him. He directed that the case file be forwarded to the Chief Justice’s office for constitution of a new bench, expressing the hope that the matter could be taken up the same day.

The petition challenges notices issued by the National Accountability Bureau (NAB) for the auction of five Bahria Town properties scheduled for July 7.

Islamabad: Federal Minister for Parliamentary Affairs Dr. Tariq Fazal Chaudhary on Monday said Pakistan’s rights under the Indus Waters Treaty (IWT) are historic, legitimate, and non-negotiable.

In a post on his X account, he said, “Water is our lifeline, essential for our people, agriculture, and future generations. Any unilateral attempt to undermine this internationally recognised agreement is neither as simple nor as acceptable as India may assume.”

He said international commitments could not be set aside through unilateral decisions or political ambitions.

“Pakistan stands firm and is fully capable of defending its rightful share of water while continuing to uphold the principles of justice, cooperation, and the global vision of ‘One Water-One Vision’,” he added.