Pakistan to introduce carbon pricing: ADB report

ISLAMABAD: Pakistan is set to introduce a carbon pricing mechanism as part of its efforts to reduce greenhouse gas emissions, according to a recent report by the Asian Development Bank (ADB). The move aligns with global initiatives aimed at addressing climate change.

The ADB’s “Asian Economic Integration Report 2024, Decarbonizing Global Value Chains” highlights the importance of implementing such policies to curb emissions. While some Asian economies have already adopted carbon pricing mechanisms, including carbon taxes and emissions trading systems, Pakistan is among several countries planning to follow suit.

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The report underscores the urgency of action, noting that several Asian economies are among the top 10 nations most vulnerable to long-term climate risks. Additionally, Asia has borne the brunt of multi-hazard losses over the past two decades.

In a separate development, the ADB has initiated a review of its country portfolio, citing the importance of trade agreements in promoting economic integration. Several agreements, including the Indonesia–Republic of Korea Comprehensive Economic Partnership Agreement (CEPA), have recently come into effect, facilitating trade between Asian economies.

The report also highlights the recovery of migrant outflows from Asia and the Pacific following the disruptions caused by the COVID-19 pandemic. While some economies have seen a resurgence in outbound migration, others are still below pre-pandemic levels.

Pakistan’s Logistics and Freight Policy, aimed at bolstering domestic and international supply chains, is also mentioned in the report. The policy seeks to integrate various modes of transport, including road, rail, marine, inland waterways, and aviation.

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Despite challenges such as rising protectionism and slowing trade and investment integration since 2019, regional cooperation remains crucial.

The report underscores the importance of dialogue and collaboration in addressing supply chain vulnerabilities and climate change risks across Asia. Strengthening connectivity and investment in infrastructure are identified as key strategies to enhance economic resilience and foster mutual benefits among Asian economies.