Assessing the Impact of Green Finance Initiatives on the Sustainable Development of Pakistan : A Secondary Data Analysis

Abstract

Environmental issues are directly in the way of Pakistan's route to sustainable development. High emissions and pollution are caused by an over reliance on fossil fuels for industry and energy. The environment is also contaminated by waste from industries and automobiles. In addition to raising the risk of climate change, environmental deterioration is putting lives in jeopardy. Pakistan's transition to a low-carbon economy is a high priority due to these issues. This entails substantial investments in sustainable practices and green technology. Perhaps the financing need for this transition can be filled by green finance. Pakistan may mitigate environmental disruptions and halt climate change by exploring the potential of green financing. It works well at reducing the lack of resources as well. This study focuses on how Pakistan's sustainable development may be aided by green economic policies and practices. It examines secondary time series data on Pakistan's green economy, financial or economic growth, institutional quality indices, and carbon dioxide emissions from 2013 to 2022. The correlations between these parameters are displayed by regression analysis. The findings show that strong institutions and steady economic growth in Pakistan are associated with a more thriving green economy. Thus, green investment and policies may support Pakistan's economic growth while preserving the environment for coming generations. On the other hand, paradoxically, greater institutional qualities may be a reflection of quicker technical advancement as they are linked to higher CO2 emissions. The organizations discovered no evidence of a meaningful relationship between the green economy and either economic expansion or CO2 emissions. One of the main suggestions is to prioritize institutional integrity in order to promote insolvency. Targeted environmental measures that strike a balance between economic growth and sustainability are required in light of the strong findings. Sustainable solutions must reduce CO2 emissions as Pakistan's population expands. Ultimately, even while the green economy has the potential to spur growth, its successful integration into more comprehensive policies is still required. In order to design coherent policies that would balance Pakistan's growth trajectory with climate resilience, the report identifies research needs