ISLAMABAD: The private sector players of the country came together at the ‘Breathe Pakistan’ conference, to share their side of the story regarding their role in the narrative. On day one of the moot, World Bank Global Director for Climate Change Valerie Hickey, Federal Planning and Development Minister Ahsan Iqbal, Coordinator to the PM Romina Khurshid, and Supreme Court Justice Mansoor Ali Shah appeared united on the necessity of the private sector taking lead in Pakistan’s climate action.
In the symposium titled, Igniting a dialogue between government & corporate sector on a new blueprint for climate resilience in Pakistan, Senior Advisor for Law and Public Policy to the Government of Pakistan Daud Munir began by saying that Pakistan needs “a fundamental shift in our approach to climate action. Speaking from the perspective of the government, I am appreciative of their efforts because they have taken a turn towards cooperation. However, fostering public private partnership remains the key that needs to be capitalised.”
He said that the government is responsible for several public responsibilities including the climate, but there are things where the government is not the expert, “for instance it should perhaps not be at the forefront of the execution of the policy. That’s where the private sector comes in.”
Munir added that the government does not see any harm if the private sector seeks to make profit. “But the private sector needs to be open to taking a risk. The private sector players in Pakistan are very risk aversive, and I understand that there are legitimate concerns, but perhaps the private sector can take a lead in diluting those concerns by working with the government.”
CEO & Secretary General Pakistan Banks Association, Muneer Kamal, said that while the situation is dire and Pakistan lost USD12.5 billion due to climate impact in a year and a half, all is not yet lost.
He said, “By 2050, Pakistan would have lost 18-20 percent of its GDP to climate impact,” adding that this is a wake-up call for the private sector, but there is some good news coming from the private sector as well.” He mentioned that the State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP) have already come up with green guidelines for the corporate sector and that is yielding results.
Business tycoon and philanthropist Syed Babar Ali shared his message for public-private partnership, in which he shared an anecdote. “In Holland, I was told that the glass of water in front of me has been drank seven times before, which shows the level of recycling in the European countries. Pakistan needs to look into recycling water and ensuring that not a drop goes to waste,” he said.
Syed Babar Ali highlighted that there is massive need for educating the farmers, as well as the industry. “They need to be taught on how to conserve water and opt for such agricultural practices,” he said, adding, “First we need to educate ourselves, and then the farmers and industries. The industrial sector needs to recycle their water, and those who are doing it already need to share their ways with others.”
He said that Pakistan should be grateful for what it has and try to preserve those resources. “We get rains but we are not harvesting rain water. We are blessed with sunshine, we should also take advantage of solar power,” he said, adding that the private sector should not wait for the government to do something when there is so much that can be done by the private sector itself.
Jazz Chief Corporate & Regulatory Officer Syed Fakhar Ahmed shared the perspective of technology and telecom in this regard, and said that the private sector is playing a role in prioritizing environment friendly products. However, he said that there is still need for spreading awareness among the masses. “The technology companies are adopting renewable energy for their own businesses and for their products. But the people also need to be made aware of the possibilities of products that consume less electricity,” he added.
However, he said that instead of focusing only on grand initiatives, smaller, collective action should also be promoted. “Why don’t we go back to the basics?” he said, adding, “How many of us stop on our ways to pick up the trash, or when we reach in our offices we take a moment to think that how could that office be more energy efficient? These are very small initiatives but if they become part of the overall approach to the issue, it could lead to a huge impact.”
EBM Executive Director Shahzain Munir said that the food industry is trying to keep the food affordable in face of eroding food security due to climate change, but they require the government’s assistance. “As was mentioned yesterday, climate is now an issue of economy. With the catastrophe as the floods, the responsibility we bear is of keeping food affordable. Climate change is not a problem for everyone. But it is a huge problem for poor. We need to be mindful of that,” he said.
Munir said that when floods happened, food prices fluctuated massively in the country. He said, “If the climate change continues to impact food prices like this, we have a very big problem. The private sector, which is us, will continue to lead but the time for awareness is over, but we need the government to support us in keeping food affordable.”
He also highlighted the impact of climate change on youth of today affecting the economy of tomorrow. “Our biggest asset is the youth. Now we have a large youth population and deteriorating climate. These are our future professionals. If they are not taken care of and given a healthy environment to grow, we will have a serious problem going into the future,” he said.
Danish Khaliq from BYD highlighted that EVs are not only beneficial for the environment but they also lead to notable savings for the consumers too. He said that the private sector has realised the potential of EVs and is playing its part in promoting this alternative over fossil fuel based vehicles, which can reduce emissions up to 80 percent.
DAI UK Climate and Environment Director Kate Wilson Hargreaves highlighted that the private sector, particularly the banking sector, can aide in facilitating climate financing. She said that through better products, and inclusivity of marginalised groups while developing financial products, the banking sector can channel financing towards those most affected and most vulnerable to climate change.
International Finance Corporation (IFC) Country Manager For Pakistan & Afghanistan Zeeshan Sheikh said that there is an overarching goal for helping the countries that are being impacted by the climate, and within that goal is the room for policy. “One of our policy initiative is to aide the countries in their journey towards climate action by promoting engagement with other countries who have been through a similar journey,” he said, adding, “the second part of that is engaging with the financial sector.”
The biggest push we have in the climate sphere is from the financial sector, he said. There are multiple ways how the financial sector is aiding in this fight, from scholarships and training to green financing and green bonds, Sheikh added. “There are also products like transition loans, that are targeted at transforming carbon-heavy businesses towards more environment friendly alternatives,” he added.
He said that IFC is also playing its part by taking on the risk of loans issued by climate action financial institutions, to promote higher instance of such financing.
Advisor for the Pak-German Climate & Energy Partnership at the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GMBH, Sobiah Becker, said that dearth of policies is not the main challenge for a country like Pakistan but their relevance was: “Pakistan’s policies need to be tailored to the conditions in the country and the resources at its disposal.”
Lamenting about the role of public sector representatives, CEO Sindh People’s Housing for Flood Affectees (SPHF) Khalid Mehmood Shaikh said that they have been trying to create a long-term relationship, which is why there are various risks: “Often we create good projects, but some officers from the public sector – I won’t take names – mess up the whole thing.” He added that there needs to be a vision which is not short-term and takes into account all those on the margins.
Unilever Chairman and CEO Amir Paracha left the audience thinking about the upcoming battle against climate change: “Fight, flight or freeze when it comes to climate change, our choice is now inevitable. It’s only to fight.”