The Ministry of Climate Change and Environmental Coordination on Wednesday announced the launch of the Challenge Fund for Climate Resilient Infrastructure, an initiative designed to bolster Pakistan’s adaptive capacity in the face of increasing climate challenges.
This transformative fund, launched here at the Ministry, would be funded by the German Federal Ministry for Economic Cooperation and Development (BMZ) and jointly implemented by GIZ Pakistan and Adam Smith International (ASI).
The Challenge Fund is part of the broader framework of the Pak-German Climate & Energy Partnership (PGCEP), a key initiative of the German development cooperation’s bilateral portfolio in Pakistan.
The Challenge Fund is being launched under the aegis of GIZ’s Energy, Climate Change, and Just Transition Cluster, in collaboration with the Ministry of Climate Change and Environmental Coordination, to support the implementation of the National Adaptation Plan of Pakistan (NAP).
The National Adaptation Plan of Pakistan serves as a comprehensive framework to address the country’s vulnerabilities to climate change and enhance resilience across critical sectors.
Aligned with the global adaptation goals under the Paris Agreement, the NAP outlines strategies to reduce risks associated with extreme weather events, protect ecosystems, and ensure climate-resilient development in agriculture, water resources, infrastructure, and urban planning.
The Challenge Fund directly supports the implementation of the NAP by prioritising projects that strengthen adaptive capacity in vulnerable areas of Khyber Pakhtunkhwa, Punjab and Islamabad Capital Territory (ICT).
These regions are experiencing a range of climate-related challenges, including frequent flooding, water scarcity, and heightened risks to agriculture and urban infrastructure. The fund focuses on strategic solutions addressing local vulnerabilities through high-impact, gender-responsive, and scalable infrastructure.
The fund will select up to five demonstration projects designed to be implemented within one year, showcasing practical, sustainable approaches to climate resilience. Applicants are encouraged to propose solutions that address specific climate impacts across rural, peri-urban, or urban settings. Priority will be given to projects that are technically feasible, sustainable, and capable of driving long-term resilience and stability for local economies and socio-economic systems.
Romina Khurshid Alam, Coordinator to the Prime Minister on Climate Change said, “The launch of the Climate Resilient Infrastructure Challenge Fund marks a significant milestone in our ongoing efforts to strengthen Pakistan’s capacity to adapt to climate change. I believe this innovative fund will empower provinces and local governments to develop and implement innovative infrastructure projects that are not only climate-resilient but also contribute to sustainable development goals and the well-being of local communities.”
Speaking about overarching objectives of the initiative, Secretary, Climate Change and Environmental Coordination Ministry Aisha Humera Moriani remarked that this much-needed climate-resilient infrastructure development initiative to be spearheaded jointly by the climate change & environmental coordination ministry and GIZ, a German governmental development agency – aims to bolster the country’s infrastructure resilience against the impacts of climate change and support the construction of sustainable and adaptive infrastructure across vulnerable regions.
She said the fund will be, indeed, a crucial step towards ensuring the country’s infrastructure can withstand the growing threats posed by climate-related disasters, including floods, droughts and extreme weather events.”
Secretary said that the Climate Resilient Infrastructure Challenge Fund would go a long way supporting the design, construction and renovation of infrastructure projects with a focus on climate resilience and adaptation.
She said, “We here at the ministry and in collaboration with our partner organization GIZ will make all-out efforts so that the fund is steered in a way so that it open to both public and private sector projects, encouraging innovation and participation from a wide range of stakeholders.”
Maria-José Poddey, Country Director of GIZ Pakistan, underscored the importance of initiatives like the Challenge Fund stating, “is not just about building infrastructure-it’s about building capacity. We aim to empower organisations, firms, and communities with the technical expertise and operational capabilities they need to lead in climate-resilient infrastructure development.”
The launch event, organised by the Ministry, highlights Pakistan’s commitment to addressing climate vulnerabilities through innovative and sustainable solutions, remarked Zulfiqar Younas, additional secretary-I at the climate change and environmental coordination ministry.
“Endorsing the Challenge Fund reflects the Ministry’s commitment to mobilising resources, fostering innovation, and promoting collaborative efforts to meet the Pakistan’s climate goals,” the senior climate change ministry official remarked.
Addressing the event, additional Secretary-II, Hammad Shamimi said that as Pakistan is one of the most climate-vulnerable countries in the world, the Climate Resilient Infrastructure Challenge Fund would prove as a proactive approach to mitigate climate risks and secure a more sustainable and resilient future for our people and infrastructure.
