Pakistan is taxing carbon through levies on fuel and vehicles, but the revenue is not being returned to citizens or used to fund clean alternatives. The article argues that without a recycling mechanism, carbon pricing becomes regressive and loses public support. It proposes using carbon revenue for household climate dividends via BISP, electric mobility for two and three wheelers, and investment in rooftop solar and battery storage. The author calls for a Carbon Tax Recycling Act that would mandate transparent reporting and allocate most revenue to the transition itself. The piece connects carbon pricing to IMF reform conditions and notes that Pakistan already has the delivery infrastructure through existing social protection systems. The core argument is that unrecycled carbon taxes are fiscal crutches, not climate policy.
