Pakistan Revives Green Fund After 11 Years to Tackle Pollution

The federal government has decided to revive the Clean Environment Fund Company (CEFC) after more than 11 years of inactivity. The fund aims to mobilise financial resources for environmental protection, conservation and pollution-control projects across Pakistan. The Cabinet Committee on State-Owned Enterprises (CCoSOEs) approved the decision on October 26 during a meeting chaired by Finance Minister Muhammad Aurangzeb. The committee approved the appointment of two ex-officio directors and three independent directors to reactivate the company under the Pakistan Environmental Protection Agency (PEPA). Established in 2015 as a non-profit organisation, the CEFC was designed to support environmental conservation, rehabilitation and improvement. However, the company remained inactive for years. The Auditor General of Pakistan also raised concerns about its failure to meet statutory requirements, including holding board meetings and annual general meetings. The revival comes as Pakistan continues to face serious air pollution, particularly in major cities. Vehicle emissions remain one of several contributors to deteriorating air quality. Therefore, the fund could potentially support cleaner transport, vehicle emissions monitoring and other pollution-control initiatives. However, the government has not announced any specific funding for the automotive sector. It has also not confirmed whether electric vehicles, charging infrastructure or emissions testing will receive financial support. The immediate priority is to make the company operational and establish its funding arrangements. The government has yet to disclose the available budget, financing sources, project selection criteria or implementation timeline. For now, the decision will not change vehicle taxes, registration requirements or emissions regulations. The fund's impact will depend on its ability to secure resources and direct them towards practical environmental projects.