Pakistan parliamentary panel questions climate levy in 2026-27 budget: no concrete projects yet

A Pakistani parliamentary committee has raised concerns about the proposed climate levy in the 2026-27 federal budget, questioning why the government is collecting carbon-related taxes without launching any concrete climate projects. Lawmakers criticized the approach as lip service, noting that funds from the IMF under the Resilience and Sustainability Facility appear to be consumed rather than invested in emissions reduction or adaptation work. The committee also rejected a proposal to lower customs duty on scrap and waste imports, citing environmental risks and contradictions with Pakistan's climate commitments. It approved a token tax increase for vehicles in Islamabad but demanded stricter enforcement of petroleum levy recovery from oil marketing companies, including automatic supply suspensions for defaulters after 30 days. The debate highlights a tension between meeting IMF conditions for climate financing and delivering visible decarbonization projects on the ground. Without project-level transparency, the carbon levy risks becoming a revenue tool rather than a climate instrument.