Pakistan has experienced some of the most challenging times in history where natural disasters, economic instability and societal challenges have tested its resilience to its core. From the catastrophic floods of 2022, which caused over $30 million in damages and impacted around 33 million people, to an economy struggling with inflation and external debt, the country and its industries have struggled to stay afloat.

Despite these struggles, the country is not standing still, rather is moving forward and is determined to create a more sustainable, inclusive and resilient economy. The agriculture sector grew by 5 per cent in FY 2022-23, while exports crossed $31 billion. The IT sector surged by 60pc over the past five years, demonstrating the potential of digital transformation.

Turning challenges into opportunities

The global financial landscape is evolving rapidly where sustainability is no longer a luxury rather a necessity. Globally, ESG investments have witnessed exponential growth. ACCA’s Green finance: a global perspective report highlights how sustainable finance is no longer an option but an imperative for economic stability. In order to create a stronger and more sustainable economy, Pakistan is in a unique position to grasp its recent hardships and convert them into something stronger. While countries globally shift towards ESG focused finance to attract greater investments and strengthen their economies, Pakistan must strengthen its focus on sustainable financial growth, climate adaptation and social advancement.

It is crucial for it to invest in projects that not only drive economic growth but also maintain a strong emphasis on reducing carbon emissions, renewable energy and green finance in their objectives while simultaneously strengthening its infrastructure and disaster preparedness. Moreover, creating job opportunities for the youth are equally important especially in high growth industries such as technology, low carbon solutions, renewable energy, climate tech and agri-tech in order to support financial inclusion and social mobility for the labour force.

Sustainable finance: The foundation of a stable economy

Pakistan issued its first Green Eurobond worth $500 million to finance hydroelectric projects which sets a step forward towards sustainable finance. Moreover, The Securities and Exchange Commission of Pakistan (SECP) introduced ESG reporting guidelines for listed companies which ensures corporate accountability and responsibility for its institutions.

Along with this, banks are launching sustainability-linked loans to fund climate resilient projects which pave a way for sustainable finance growth. However, these initiatives must be scaled up. For Pakistan to fully capitalise on sustainable finance, it must create an environment where investors, businesses and institutions see long-term value in decarbonisation and ESG-aligned investments.

Financial institutions must actively promote green bonds, climate-smart investments and ESG-aligned business models, while the government should introduce tax incentives for ESG investments and strengthen its climate risk disclosures in order to mobilise capital for public private partnerships

There is certainly a huge global shift towards sustainable finance which is an opportunity that Pakistan cannot afford to miss. According to the International Energy Agency (IEA), achieving net-zero emissions by 2050 will require $4 trillion annually in clean energy investments. This presents an opportunity for Pakistan to utilise in order to attract foreign investments and promote long term economic stability. The shift towards green and ESG-aligned finance is already in action.

The role of ACCA in building skills for the youth

The future of Pakistan relies not only on sustainable policies and investment but also on its workforce, ensuring that it is equipped with the right skills and mindset to create a way for this transition. In the current financial landscape, competencies such as understanding ESG frameworks, climate risk assessments as well as the understanding of sustainable investment strategies play a pivotal role in delivering sustainable finance. ACCA has been at the forefront of this shift, ensuring that finance professionals are prepared to lead in a sustainability driven economy.

Through Finance for the Future and strategic collaborations with policymakers, business leaders and regulators, ACCA is actively creating a culture where sustainability is integrated in financial decision-making. In Pakistan, they are working closely with businesses, regulatory authorities and educational institutions to integrate sustainability into finance curriculum and professional training programs, ensuring that professionals are not only aware of sustainability principles but can also apply them effectively in their roles.

ACCA’s report, Professional Accountants at the Heart of Sustainable Organisations, highlights the growing demand for expertise in ESG reporting, climate risk assessment and impact-driven investment strategies. As global markets shift towards sustainable finance, Pakistani finance professionals must stay ahead of the curve to remain competitive and to attract international investment which play a critical role in shaping Pakistan’s path toward long-term economic resilience. ACCA remains committed to this mission, empowering professionals with the skills needed to build a more responsible, inclusive and future-ready financial system for Pakistan.

Unlocking Pakistan’s economic future through sustainable finance

In order for Pakistan to fully capture its potential of sustainable finance, a multifaceted approach is necessary where government bodies, policy makers and private sector leaders coordinate to create an inclusive environment for investment and long term economic stability. Pakistan now stands at the forefront of this transformation, where a commitment to sustainable finance, decarbonisation, ESG-driven investments as well as industrial modernisation is crucial. By strengthening industries, creating jobs and promoting resource optimisation, circularity and indigenisation and aligning them with climate adaptation policies, Pakistan can build a future that is economically strong, socially inclusive and environmentally responsible.

Sustainable finance is no longer an abstract concept rather the future of economic growth. As Pakistan navigates economic recovery, climate adaptation and financial stability, financial institutions, investors and policy makers play a crucial role in integrating sustainability into their roles.

At ACCA, people remain committed to supporting this transformation, ensuring that Pakistan’s financial professionals are equipped with the skills, knowledge and expertise to drive a more inclusive and forward-looking financial system. The choices people will make today will determine the economic prosperity of future generations and embracing sustainable finance is one way to unlock Pakistan’s full potential.

This content is produced in paid partnership with ACCA.