Towards Green Finance: A Framework for Sustainable Economic Development in Pakistan

Pakistan, a developing economy facing severe environmental and economic challenges, requires robust financial mechanisms that address climate change, resource depletion, and foster long-term economic growth. Green finance, which supports investments in environmentally sustainable projects that yield financial returns, is a critical tool for driving the transition to a low-carbon economy. This research explores the potential of green finance in Pakistan, identifying the key barriers and opportunities, and developing a comprehensive framework that could facilitate sustainable economic development. Through a mixed-methods approach, including a detailed literature review, surveys, and semi-structured interviews with key stakeholders, this paper provides a thorough analysis of the current landscape of green finance in Pakistan. Findings reveal that, while there is considerable potential, significant barriers, including regulatory gaps, limited financial products, and lack of expertise, must be overcome for green finance to flourish in the country. The paper concludes with policy recommendations for creating a sustainable green finance ecosystem that can help Pakistan meet its long-term sustainable development goals.