Budget Blow to Climate Action: Sherry Rehman Slams Cut in Climate Budget

In a scathing address to the Senate, Senator Sherry Rehman—Vice President of Pakistan Peoples Party (PPP) and Chairperson of the Senate Standing Committee on Climate Change—criticized the federal budget 2025–26 for its climate budget cut, calling it “unfair and dangerous” in the face of Pakistan’s escalating climate emergency.

She highlighted the disconnect between the government’s allocation priorities and the pressing realities of climate vulnerability, record heatwaves, and environmental degradation.

Solar Panel Tax Relief Welcomed

While critical of several budgetary measures, Rehman acknowledged a small win in the reduction of tax on solar panels from 18% to 10%.

“Would have preferred no tax, but at least now on solar panels, the tax is reduced from 18 per cent to 10 per cent,” she said.

This move, long advocated by the PPP across both houses and finance committees, signals progress toward incentivizing renewable energy. However, Rehman emphasized that more systemic reforms are needed to shift Pakistan toward green energy and climate resilience.

Climate Budget Cut Sparks Concern

The core of Rehman’s criticism centered around the Ministry of Climate Change’s budget reduction from Rs3.5 billion to Rs2.7 billion.

“At this inflection point, we needed to put our money where our maximum challenges arise,” she argued.

Pakistan now tops the German Watch Climate Risk Index 2025, facing extreme heat above 50°C in the south and a sharp decline in water availability. According to Rehman, this budget cut weakens Pakistan’s climate diplomacy, reduces capacity to honor 27 international climate treaties, and jeopardizes access to global climate finance, including the Loss and Damage Fund won through hard-earned negotiations.

“We have already lost our voice on the Loss and Damage Fund secured with serial hard work and commitments by Foreign Minister Bilawal Bhutto Zardari and PM Shehbaz Sharif.”

Environmental Setbacks and Public Health Risks

Senator Rehman also outlined massive setbacks in environmental protection allocations:

• Pollution control budget halved
• Environmental protection funding dropped from Rs7.2 billion to Rs3.1 billion
• Zero allocation for rainwater harvesting
• Loss of 27,000 hectares of agricultural land annually

Further, she condemned the imposition of 18% GST on electric and hybrid vehicles, calling it a “counterproductive policy in a climate emergency.”

“Air pollution already causes 128,000 deaths each year in Pakistan,” she warned, citing the Air Quality Life Index 2024, which states that nearly the entire population breathes toxic air.

Rehman also referenced a World Bank study, which estimates that air pollution costs Pakistan 7% of GDP annually.

Education Grants Restored After Pushback

On a more positive note, Rehman praised the government’s acceptance of the PPP’s recommendation to restore the university grant to Rs4.6 billion.

“Special attention is being given to youth education in Balochistan and Sindh, but we need a systemic response,” she said.

This move was seen as crucial in addressing the 26 million children still out of school in Pakistan.

Wage Justice and Regressive Tax Woes

Rehman didn’t mince words when addressing income inequality and the need for a fair minimum wage.

“I am unhappy to see that we raised our own salaries but failed to raise the minimum wage. Why?”

She emphasized the unbearable financial burden faced by ordinary Pakistanis amid rising utility bills and heatwaves, noting that the current minimum wage remains below the global poverty threshold.

Her call to action:

“Let’s look to the bottom of the social pyramid with real lenses.”

Petrol Price Surge and Economic Pressure

Senator Rehman connected the recent surge in petrol prices to geopolitical instability, particularly the conflict between Israel and Iran.

“Oil prices are already rising after Israel’s war on Iran. In such tough times, we must stand up for our people, not abandon them to economic hardship.”

She called on the government to mitigate global economic shocks through pro-people policies instead of austerity-focused measures.

Indus Waters Treaty and Water Weaponisation

One of the most alarming revelations in her speech was the accusation that India had unilaterally suspended the Indus Waters Treaty during a time of extreme drought in Pakistan.

“Pakistan has always desired peace. But India’s decision to treat shared water as a weapon is unprecedented and dangerous.”

Rehman commended Pakistan’s diplomatic corps for presenting a strong case in Washington, London, and Brussels.

“Pakistan acted as a responsible and mature nuclear power,” she said, while criticizing India for its “unclear and provocative posture.”

Conclusion: A Call for Climate-Responsive Governance

Sherry Rehman’s Senate address was a powerful indictment of budgetary neglect during a time of unprecedented climate, economic, and social crises. Her critique of the climate budget cut lays bare the risks of short-term fiscal thinking in an era that demands urgent and sustained climate investment.

She ended by thanking Prime Minister Shehbaz Sharif, Chairman Bilawal Bhutto Zardari, and the Foreign Office for advocating Pakistan’s case internationally.

“We had productive conversations everywhere, and Pakistan’s narrative stood out stronger.”

However, Rehman’s warning remains clear: without bold domestic action, Pakistan risks undoing its diplomatic gains and failing its most vulnerable citizens.

Internal Links

• Pakistan’s Climate Diplomacy in 2024
• Air Pollution Crisis in Urban Pakistan

External DoFollow Links

• Air Quality Life Index 2024
• World Bank Report on Air Pollution and Economy
• Germanwatch Climate Risk Index 2025