Pakistan’s mangrove carbon credit sales hit $40mn, boosts target to $12bn by 2075

Woman gardener plants mangroves in Village Haji Doongar Jatt in Sujawal District on August 14, 2023 to mark the start of the Delta Blue Carbon (DBC) - 2 project, which aims to plant and restore mangroves. (AN Photo/ Zulfiqar Kunbhar)
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Updated 18 August 2023
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Pakistan’s mangrove carbon credit sales hit $40mn, boosts target to $12bn by 2075

  • Sindh launches Delta Blue Carbon (DBC) — 2 mangrove plantation, restoration project in coastal districts of Badin, Sujawal
  • Combined foreign direct investment in mangrove plantation project expected to reach $100 million, as per official data

SUJAWAL, SINDH: Cash-starved Pakistan raised its carbon trading sales target this month to $12 billion by launching a new mangrove plantation project at the Indus Delta in the country’s southern Sindh province that has till date sold $40 million worth of carbon credits, officials confirmed.

Known as the vertebra of Pakistan’s ecology and economy, the Indus Delta is the fifth largest in the world and home to the seventh biggest mangrove forest. According to the Sindh Forest Department (SFD), Indus Delta mangroves are unique as they are the largest arid climate mangroves in the world.

With the help of foreign private funding, on August 14, 2023, the SFD launched the new Delta Blue Carbon (DBC) — 2 mangrove plantation and restoration project in the coastal districts of Badin and Sujawal in Sindh. The DBC-2 is a continuation of the 60-year-long Delta Blue Carbon (DBC) — 1 mangrove restoration and plantation project that began in the Indus Delta in 2015 and is still carrying on.

“The current size of the Indus Delta is 670,000 hectares while the Sindh Forest Department aims to complete mangrove restoration and plantation in the Indus Delta on 450,000 hectares by 2030 though DBC-1 and DBC-2 projects,” Riaz Ahmed Wagan, chief conservator of forests in the Sindh Forest Department, told Arab News.




Women gardeners gesture for a group photo at an event to mark the start of the Delta Blue Carbon (DBC) - 2 project, aims to plant and restore mangroves, in Village Haji Doongar Jatt in Sujawal District on August 14, 2023. (AN Photo/ Zulfiqar Kunbhar)

“The ongoing DBC-1 project focuses on 250,000 hectares, while the new DBC-2 project plans to add 200,000 hectares in mangrove growth,” he added.

The forest department official said Sindh’s Indus Delta mangrove plantation is currently Pakistan’s only carbon credits seller project. These projects are designed to reduce or remove carbon dioxide from the atmosphere, and the resulting credits can be bought and sold on the carbon market.

Wagan said Sindh estimated to generate $7 billion in certified emission reductions (CERs) by completing the DBC-1 project by 2075. With the introduction of the DBC-2 initiative, the province aims to add an additional $5 billion by the same year, he added.

“As a result, through the combined projects Sindh is projected now to yield earnings of $12 billion by the year 2075 through carbon credit afforestation sales,” Wagan said.




This photo shows a mangrove nursery at the launch of Delta Blue Carbon (DBC) - 2 project, aiming to plant and restore mangroves, in Village Haji Doongar Jatt in Sujawal District on August 14, 2023. (AN Photo/ Zulfiqar Kunbhar)

According to Pakistan’s Ministry of Climate Change and Environmental Coordination document much of the original area where mangroves were planted has been degraded in the Indus Delta, primarily due to freshwater diversion, over-exploitation (wood, fodder, and grazing), and land-based pollution.

The Kyoto Protocol, an international treaty of which Pakistan is also a signatory, was established in 1997 and enforced in 2005. The treaty aimed to combat climate change and set mandatory emission reduction goals for developed nations.

According to the United Nations Framework Convention on Climate Change (UNFCCC), the Clean Development Mechanism (CDM) lets countries that promised to lower their emissions as part of the Kyoto Protocol, work on projects that reduce pollution in poorer countries. These projects can earn them credits called certified emission reductions (CERs), which help them meet their Kyoto goals.

Pakistan is currently among the top ten countries most impacted by climate change in the world. Officials say as a signatory of the Kyoto Protocol, Pakistan is also making efforts to mitigate and adapt to the effects of climate change. The Indus Delta mangrove plantation is a part of these efforts.




Male gardeners gesture for a group photo at an event to mark the start of the Delta Blue Carbon (DBC) - 2 project, aims to plant and restore mangroves, in Village Haji Doongar Jatt in Sujawal District on August 14, 2023. (AN Photo/ Zulfiqar Kunbhar)

 As per official figures, Pakistan’s emissions in 2018 totaled 489.87 metric tons of CO2 equivalent (MtCO2e), accounting for around 0.50 percent of global carbon dioxide emissions. This suggests that the DBC-1 and DBC-2 emissions credits projects will approximately be equal to half of the country’s emissions.

“The combined carbon offsetting of Pakistan through the DBC-1 and DBC-2 projects is anticipated to reach 240 million metric tons of carbon dioxide equivalent (MtCO2e),” Wagan noted.

“Within this, DBC-1 is projected to capture 140 million metric tons of carbon dioxide equivalent (MtCO2e) through carbon credits, while DBC-2 is expected to reduce approximately 100 million metric tons of carbon dioxide equivalent (MtCO2e) through carbon credits.”

As per official figures, Sindh has sold 3.1 million carbon credits as of now, worth $40 million. By 2075, Sindh is expected to create 140 million carbon credits in the Voluntary Carbon Market (VCM) — a global system to trade carbon offsets.




A woman gardener poses for a photo while planting mangroves in Village Haji Doongar Jatt in Sujawal District on August 14, 2023 to mark the start of the Delta Blue Carbon (DBC) - 2 project, which aims to plant and restore mangroves. (AN Photo/ Zulfiqar Kunbhar)

To date, Sindh has sold a total of $40 million worth of carbon credits in the carbon credit market through DBC-1. The value per carbon credit sold by Sindh has ranged from $12 to $50, reflecting variations in the market, Wagan said.

According to official statistics, combined foreign direct investment in DBC-1 and DBC-2 is projected to reach around $100 million, with an estimated investment of $60 million in DBC-1 and an anticipated investment of $40 million in DBC-2.

According to Waqar Hussain, a senior official at Environment, Climate Change & Coastal Development Department Sindh, the increasing mangrove cover in the Indus Delta would have a positive impact on the economy.

“Mangroves have the ability to absorb four times more carbon dioxide than other trees,” he said. “They act as protective barriers against cyclones and create habitats for aquatic life, benefiting fishing,” Hussain added.




A male gardener poses for a photo while planting mangroves in Village Haji Doongar Jatt in Sujawal District on August 14, 2023, to mark the start of the Delta Blue Carbon (DBC) - 2 project, which aims to plant and restore mangroves. (AN Photo/ Zulfiqar Kunbhar)

 


Pakistani firm partners with UAE’s NymCard to promote fintech innovation in MENAP

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Pakistani firm partners with UAE’s NymCard to promote fintech innovation in MENAP

  • Dellsons Associates is a Pakistani consultancy firm while Nymcard is a UAE-based financial services provider
  • Dellsons to act as a partner agent and refer new business opportunities to Nymcard, says press release

ISLAMABAD: Pakistani financial consultancy firm Dellsons Associates has partnered with NymCard, a leading financial services provider in the UAE, to promote innovation in the fintech landscape and empower businesses in Pakistan and the Middle East, Nymcard said on Wednesday. 

NymCard is a leading provider of end-to-end embedded finance solutions, simplifying payments with its modern platform since 2018. It empowers businesses of all sizes to launch new payment products quickly, including prepaid cards, multi-currency offerings and credit cards.

Dellsons Associates is a leading provider of strategic banking consultancy, training, conferences, event management, IT services, and more, its website says. 

The partnership between the two entities was signed at the Dubai Fintech Summit, a press statement from NymCard said, adding that the strategic alliance would synergize NymCard’s cutting-edge technology with Dellsons’ regional expertise and industry connections in the financial and banking sectors. 

“We are excited to partner with Dellsons Associates, believing the synergies from this collaboration would catalyze cross-regional expansion for both institutions,” Shiraz Ali, the chief business officer at NymCard, was quoted as saying in the press release. 

The press release said Dellsons would act as a partner agent and refer new business opportunities to NymCard, focusing on the fintech and banking sectors in the UAE and Pakistan. It said the partnership would create a powerful alliance to “revolutionize the financial services landscape.”

Dellsons Associates Chairman Ibrahim Amin said his firm was working in Pakistan and the Middle East to promote fintech innovation, financial inclusion, and digitization of cross-border channels of remittances to facilitate different states. 

“Our key objective is to bring social and economic development through technological solutions, collaborations with emerging players, and networking with communities in Pakistan, the UAE, and different countries of the Middle East and South Asia,” Amin was quoted as saying by the press release. 


Pakistani court grants bail to ex-PM Khan in graft case, says party

Updated 45 min 40 sec ago
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Pakistani court grants bail to ex-PM Khan in graft case, says party

  • Ex-PM Khan, wife were charged with receiving land worth millions of dollars as bribe from real estate tycoon
  • Khan’s party says “fake” cases were designed to damage his and wife’s reputation, keep him away from polls

ISLAMABAD: A Pakistani high court on Wednesday granted bail to former prime minister Imran Khan in a land corruption case, his party confirmed in a statement, rejecting the “fabricated and politically motivated” cases against the cricketer-turned-politician. 

Government officials allege Khan, 71, and his wife received land worth millions of dollars as a bribe from a real estate tycoon Malik Riaz Hussain through the Al-Qadir Trust, a non-governmental welfare organization set up by Bushra Watto, Khan’s third wife, and Khan in 2018 when he was still in office.

The trust runs a university outside Islamabad devoted to spirituality and Islamic teachings, a project inspired by the former first lady, who is also commonly known as Bushra Bibi and has a reputation as a spiritual healer.

Khan was briefly arrested on May 9 in connection with the case, with riots breaking out throughout the country that saw military and government installations attacked. Khan was released shortly but was arrested in August in a separate case related to the sale of state gifts illegally. 

The National Accountability Bureau (NAB), Pakistan’s corruption watchdog, filed a reference against Khan in December 2023 saying he and his wife committed the offense in the land corruption case. In February this year, the former prime minister and his wife were indicted by an accountability court. 

Khan, who denied the charges, appealed against the indictment at the Islamabad High Court. A two-member bench of the IHC comprising Chief Justice Aamer Farooq and Justice Tariq Mehmood Jahangiri had reserved the verdict on Tuesday after both sides concluded their arguments.

“Islamabad High Court has accepted bail petition from the Former Prime Minister Imran Khan & has ordered his release,” Khan’s Pakistan Tehreek-e-Insaf (PTI) party said in a statement. 

The PTI said it had contended that the land of the trust was not for personal gain. It said the former prime minister had established a religious and scientific educational institution with the intention of providing quality education to people regardless of caste, creed, race, religion, or financial status. 

It said that since the trust deed mentioned Khan and his wife could not derive any benefit from it, the “false, fabricated and politically motivated cases were filed against them only to damage their reputation.”

“And to keep him in prison, impeding his participation in general elections,” it added. 

Despite the order, Khan, who has been in jail since August 2023, will not be immediately released as he is serving sentences in two other cases, one in which he and his wife are charged with violating the country’s marriage law when they wed in 2018 and in another where he is accused of leaking state secrets for political gain. 


Pakistan conducts successful training launch of rocket system capable of engaging ‘deep targets’

Updated 49 min 14 sec ago
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Pakistan conducts successful training launch of rocket system capable of engaging ‘deep targets’

  • Fatah II Guided Rocket System can defeat any missile defense system, says army’s media wing 
  • Pakistan sees its missile development as deterrent against nuclear-armed neighbor and rival India 

ISLAMABAD: Pakistan Army on Wednesday successfully conducted the training launch of the Fatah-II Guided Rocket System capable of engaging “deep targets” with high precision, a statement from the army’s media wing said, adding it can defeat any defense system. 

Pakistan sees its missile development as a deterrent against nuclear-armed neighbor India, with which it has fought three wars since independence from Britain in 1947. Both nations have been developing missiles of varying ranges since they conducted nuclear tests in May 1998. In December 2023, Pakistan Army successfully conducted the flight test of the Fatah-II missile, which has a range of 400 kilometers. 

“Equipped with state-of-the-art navigation system, unique trajectory and maneuverable features, Fatah-II is capable of engaging targets with high precision and defeating any missile defense system,” the Inter-Services Public Relations (ISPR), the army’s media wing, said. 

“Fatah -II is being inducted in Pakistan’s Artillery Divisions for stand-off, precision engagement of deep targets.”

The army said the rocket system would “significantly upgrade” the reach and lethality of Pakistan Army’s conventional arsenal.

The flight test was witnessed by Pakistan Army’s chief of general staff and senior officers of the country’s air force, army and navy forces, apart from scientists and engineers.

President Asif Zardari, Prime Minister Shehbaz Sharif, Chairman Joint Chiefs of Staff Committee General Shamshad Mirza and Army Chief General Syed Asim Munir congratulated the participating troops and scientists over the achievement.

As Pakistan and India continue to test missiles and build their weapons armor, analysts warn Asia may be sliding into an accelerating arms race. 
 


Ancient spring festival kicks off in Pakistan’s Chitral, drawing crowds with traditional music and dance

Updated 27 min 56 sec ago
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Ancient spring festival kicks off in Pakistan’s Chitral, drawing crowds with traditional music and dance

  • Chilam Joshi festival is celebrated by the Kalash people, often described as pagan due to their religious practices
  • The annual event is integral to the identity of the Kalash community and the continuity of its ancient traditions

PESHAWAR: The Khyber Pakhtunkhwa (KP) Tourism Authority on Tuesday announced the beginning of a popular cultural festival in Pakistan’s northwestern Chitral region, saying the event had attracted large numbers of foreign and local tourists like in the past.

The Chilam Joshi festival is celebrated by the Kalash people, who are often described as pagan due to their religious beliefs and practices involving the worship of multiple gods and spirits, to mark the arrival of spring and celebrate the bounty of nature.

Known for music, dance, and colorful clothes, the festival is also associated with the preparation for new crops, symbolizing hope and prosperity for the community.

“The ancient Kalash festival ‘Chilam Joshi’ has kicked off in full swing,” the KP tourism authority said in a statement. “Young women of Kalash danced to the beat of drums while wearing intricately embroidered garments, enhancing the colors of the festival.”

The statement added that district administration officials, members of the Kalash Development Authority and a large number of domestic and foreign tourists were also attending the festivity.

“The district administration has arranged foolproof security for the festival,” it added. “Tourism police are also providing services for the guidance of tourists.”

Chilam Joshi is said to be the oldest festival of the Kalash tribe. It involves various rituals, the most well-known being the one where people dance with walnut branches in hand.

The festival will last for three days in the area known for its rugged terrain and scenic beauty. The annual event is considered integral to the identity of the indigenous Kalash community and the continuity of its ancient traditions.
 


Pakistan shares hit fresh record on rate cut hopes, IMF talks

Updated 15 May 2024
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Pakistan shares hit fresh record on rate cut hopes, IMF talks

  • Pakistan last month completed a short-term, $3 billion IMF program, seeking fresh, longer-term bailout 
  • IMF mission is in Pakistan to discuss financial year 2025 budget, policies, reforms under potential new program

Pakistan’s benchmark share index touched a lifetime high on Wednesday, breaching the key level of 75,000, on hopes that easing inflation could pave the way for interest rate cuts as early as June.

Still attractive stock valuations, expectations of more foreign inflows, and the start of talks with the IMF on a new loan program added to the bullish sentiment.

The index was trading at 75,013 points at 0531 GMT, up 0.7 percent, after hitting an intraday high of 75,115. It has surged 80 percent over the past year, and it is up 16.1 percent year-to-date after an IMF rescue last summer helped the government avert a debt default.

On Monday, the index closed at a record of 73,822, up 1 percent.

Mohammed Sohail, CEO of Topline Securities, said Wednesday’s gains were fueled by foreign fund buying.

On Tuesday, the MSCI index added a Pakistani bank, National Bank of Pakistan, to the MSCI frontier market index. Its shares rose 1.6 percent on Wednesday, outperforming the benchmark index.

“We estimate Pakistan’s weight will also increase, thereby having the potential to attract more passive foreign funds,” said Sohail.

The market is picking up steam due to an anticipated decline in inflation to 13.5 percent for May and expectations of a monetary easing cycle starting in June, said Shahid Habib, CEO of Arif Habib Limited.

Investors were also optimism about discussions on a new International Monetary Fund financing program and the economic roadmap ahead, Habib said.

Pakistan last month completed a short-term, $3 billion IMF program, but the government of Prime Minister Shehbaz Sharif has stressed the need for a fresh, longer-term program.

An IMF mission is in Pakistan to discuss the financial year 2025 budget, policies, and reforms under a potential new program.

Wall Street bank Citi expects Pakistan to reach a four-year agreement with the IMF worth up to $8 billion by end-July, and recommends going long on the country’s 2027 international bond.