Pakistan eyes carbon market partnership with ADB to advance climate goals

Pakistan’s Climate Change Minister Dr. Musadik Malik speaks during a meeting with a high-level Asian Development Bank (ADB) delegation in Islamabad on May 29, 2025. (Handout/Climate Ministry)
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Updated 29 May 2025
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Pakistan eyes carbon market partnership with ADB to advance climate goals

  • Carbon markets reduce emissions by letting countries buy and sell tradable ‘carbon credits’
  • Pakistan introduced its first carbon market policy last year to drive a low-carbon transition

ISLAMABAD: Pakistan’s Climate Change Minister Dr. Musadik Malik on Thursday met with a high-level Asian Development Bank (ADB) delegation to explore potential collaboration on carbon markets as part of the country’s evolving climate strategy, said in an official statement.

The visiting team was led by Toru Kubo, ADB’s Senior Director for Climate Change and Sustainable Development. The discussions focused on leveraging carbon markets to reduce greenhouse gas emissions and attract new streams of climate finance for sustainable development.

Carbon markets are trading systems that allow countries, companies or organizations to buy and sell carbon credits or permits representing the right to emit a specific amount of carbon dioxide. These markets create financial incentives for reducing emissions and investing in greener alternatives.

“Both sides agreed to formulate a comprehensive, mutually aligned climate change strategy, with a specific focus on carbon credit mobilization, climate innovation and outcomes-based project implementation,” the climate change ministry said in a statement.

The two sides also explored ways for Pakistan to strategically align its carbon finance agenda with the Sustainable Development Goals, aiming to turn climate action into a driver of economic growth, it added.

On the occasion, Malik assured the ADB of full support in the strategy formulation, emphasizing that it should remain “impact-driven, transparent and results-oriented.”

Kubo highlighted ADB’s support for developing member countries, including Pakistan, by enhancing their carbon finance capabilities through mobilizing investments in low-carbon technologies, enabling them to access and benefit from global carbon markets.

The ministry said the meeting showed that climate action is now seen as a way to boost the economy, not just an environmental measure, with more countries paying attention to carbon markets.

Pakistan unveiled the country’s first National Carbon Market Policy in November 2024, saying that the government wanted to attract investments in green initiatives and transition toward a low-carbon economy.

According to the Global Climate Risk Index, Pakistan is ranked as the fifth most vulnerable country to climate change.

In 2022, devastating floods claimed about 1,700 lives and affected more than 33 million people, causing economic losses exceeding $30 billion.

Although international donors pledged over $9 billion to support Pakistan’s flood recovery, officials report that only a small portion of the promised funds were received by the country.


Pakistan says defense pact with Saudi Arabia elevated brotherly ties to ‘new heights’

Updated 25 February 2026
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Pakistan says defense pact with Saudi Arabia elevated brotherly ties to ‘new heights’

  • Pakistan, Saudi Arabia signed strategic defense pact last year pledging aggression against one will be treated as attack on both
  • Deputy PM Ishaq Dar says enduring bonds with Islamic and Arab nations form vital pillar of Pakistan’s foreign policy 

ISLAMABAD: Deputy Prime Minister Ishaq Dar said on Wednesday that Pakistan’s defense pact with Saudi Arabia elevated its brotherly ties with the Kingdom to “new heights,” stressing that close ties with Arab and Islamic nations form a key pillar of Islamabad’s foreign policy. 

Pakistan and Saudi Arabia signed a Strategic Mutual Defense Agreement on Sept. 17 last year, pledging that aggression against one country would be treated as an attack on both, enhancing joint deterrence and formalizing decades of military and security cooperation.

Both nations agreed in October 2025 to launch an economic cooperation framework to strengthen trade and investment ties. 

“In the Middle East, our landmark Strategic Mutual Defense Agreement with Saudi Arabia has elevated our brotherly ties to new heights,” Dar said while speaking at the Pakistan Governance Forum 2026 event in Islamabad. 

The Pakistani deputy prime minister was speaking on the topic “Navigating International Relations Amidst Changing Geo-Politics.”

Dar noted that Pakistan has reinforced partnerships with other Middle Eastern nations such as the UAE, Qatar, Jordan, Oman, Egypt and Bahrain. He said these partnerships have yielded “concrete agreements” in investment, agriculture, infrastructure, and energy sectors. 

“Our enduring bonds with Islamic and Arab nations form a vital pillar of our foreign policy, and we will continue to expand our partnerships across Asia, Latin America, and Africa,” he said. 

Dar pointed out that the presidents of Kazakhstan, Uzbekistan and Kyrgyzstan have undertaken visits to Pakistan in recent months, reflecting Central Asian nations’ desire to boost cooperation with Islamabad.

On South Asia, the Pakistani deputy PM said Pakistan has successfully transformed its fraternal ties with Bangladesh into “a substantive partnership.”

“Similarly, the trilateral mechanism involving China, Pakistan, and Bangladesh has been launched with a view to expanding and deepening regional cooperation and synergy,” the Pakistani minister said. 

He said Islamabad has strengthened its “all-weather” partnership with China via the second phase of the multi-billion-dollar China-Pakistan Economic Corridor agreement and “unwavering support” from both sides for each other’s core interests. 

Dar said Pakistan had also reinvigorated its partnership with the US, advancing cooperation in trade, technology, investment, and regional stability. 

“This calibrated approach has enhanced our ability to navigate complexity with skill and confidence, ensuring that our national interests are served without compromising our core foreign policy principles,” he said.