Web Desk
Pakistan’s Clean Environment Fund (CEF), created to support green projects and promote sustainable development, has remained inactive for nearly ten years. This prolonged dormancy raises serious concerns about the government’s commitment to environmental governance.
An audit of the Pakistan Environmental Protection Agency (Pak-EPA) for FY2023–24 revealed troubling findings. The fund, incorporated in May 2015 under Section 42 of the Companies Ordinance, failed to meet its core objectives. Since its launch, it has not conducted operations, held board meetings, or released financial statements.
Moreover, the audit noted that the management did not organize mandatory Annual General Meetings (AGMs), violating Section 132(1) of the Companies Act 2017. This lapse could result in penalties from the Securities and Exchange Commission of Pakistan (SECP), which oversees corporate compliance.
In addition, the administrators ignored the requirement to prepare annual financial reports under Section 223 of the same Act. This failure raises serious questions about transparency, oversight, and institutional accountability.
Although the CEF Board holds legal authority to manage operations and form committees, it continues to remain inactive. In response, Pak-EPA blamed delays on the Ministry of Climate Change and Environmental Coordination. The Ministry, responsible for nominating board members, has not completed the process. Although it recently approved a plan to convene a board meeting, preparations remain incomplete.
However, auditors rejected this explanation, calling it unsatisfactory. They warned that prolonged inactivity has weakened Pakistan’s environmental performance. Furthermore, the report highlighted that multiple reminders to convene Departmental Accounts Committee (DAC) meetings—sent between October 2024 and January 2025—received no response.
Consequently, the audit urged the government to activate the Clean Environment Fund without delay. Reviving the fund would restore institutional credibility, support enforcement, and restart stalled environmental projects.
Meanwhile, Pakistan’s environmental sector faces growing challenges. Climate-induced floods, worsening smog, and deforestation continue to strain national resources. Yet, financial and administrative paralysis has stalled progress. Experts argue that the dormant Clean Environment Fund reflects a broader failure to turn climate pledges into action. At the same time, global funding opportunities for developing nations continue to expand.
Ultimately, without operational systems and political will, environmental promises risk becoming hollow. Reinvigorating Pakistan’s Clean Environment Fund is not just a legal requirement—it’s a vital step toward climate resilience.
