Pakistan is introducing a $615 million initiative to help exporters in the textile, leather, and surgical sectors reduce carbon emissions. The program, led by EXIM Bank, uses a blended finance model featuring $600 million in concessional loans and $15 million in grants to fund cleaner technologies and renewable energy integration. This move is primarily designed to keep Pakistani exports competitive against the European Union's Carbon Border Adjustment Mechanism (CBAM). The government aims to avoid 80 million tonnes of CO2 equivalent emissions while upgrading outdated industrial machinery.
