Pakistan’s mangrove carbon credit sales hit $40mn, boosts target to $12bn by 2075

Woman gardener plants mangroves in Village Haji Doongar Jatt in Sujawal District on August 14, 2023 to mark the start of the Delta Blue Carbon (DBC) - 2 project, which aims to plant and restore mangroves. (AN Photo/ Zulfiqar Kunbhar)
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Updated 18 August 2023
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Pakistan’s mangrove carbon credit sales hit $40mn, boosts target to $12bn by 2075

  • Sindh launches Delta Blue Carbon (DBC) — 2 mangrove plantation, restoration project in coastal districts of Badin, Sujawal
  • Combined foreign direct investment in mangrove plantation project expected to reach $100 million, as per official data

SUJAWAL, SINDH: Cash-starved Pakistan raised its carbon trading sales target this month to $12 billion by launching a new mangrove plantation project at the Indus Delta in the country’s southern Sindh province that has till date sold $40 million worth of carbon credits, officials confirmed.

Known as the vertebra of Pakistan’s ecology and economy, the Indus Delta is the fifth largest in the world and home to the seventh biggest mangrove forest. According to the Sindh Forest Department (SFD), Indus Delta mangroves are unique as they are the largest arid climate mangroves in the world.

With the help of foreign private funding, on August 14, 2023, the SFD launched the new Delta Blue Carbon (DBC) — 2 mangrove plantation and restoration project in the coastal districts of Badin and Sujawal in Sindh. The DBC-2 is a continuation of the 60-year-long Delta Blue Carbon (DBC) — 1 mangrove restoration and plantation project that began in the Indus Delta in 2015 and is still carrying on.

“The current size of the Indus Delta is 670,000 hectares while the Sindh Forest Department aims to complete mangrove restoration and plantation in the Indus Delta on 450,000 hectares by 2030 though DBC-1 and DBC-2 projects,” Riaz Ahmed Wagan, chief conservator of forests in the Sindh Forest Department, told Arab News.




Women gardeners gesture for a group photo at an event to mark the start of the Delta Blue Carbon (DBC) - 2 project, aims to plant and restore mangroves, in Village Haji Doongar Jatt in Sujawal District on August 14, 2023. (AN Photo/ Zulfiqar Kunbhar)

“The ongoing DBC-1 project focuses on 250,000 hectares, while the new DBC-2 project plans to add 200,000 hectares in mangrove growth,” he added.

The forest department official said Sindh’s Indus Delta mangrove plantation is currently Pakistan’s only carbon credits seller project. These projects are designed to reduce or remove carbon dioxide from the atmosphere, and the resulting credits can be bought and sold on the carbon market.

Wagan said Sindh estimated to generate $7 billion in certified emission reductions (CERs) by completing the DBC-1 project by 2075. With the introduction of the DBC-2 initiative, the province aims to add an additional $5 billion by the same year, he added.

“As a result, through the combined projects Sindh is projected now to yield earnings of $12 billion by the year 2075 through carbon credit afforestation sales,” Wagan said.




This photo shows a mangrove nursery at the launch of Delta Blue Carbon (DBC) - 2 project, aiming to plant and restore mangroves, in Village Haji Doongar Jatt in Sujawal District on August 14, 2023. (AN Photo/ Zulfiqar Kunbhar)

According to Pakistan’s Ministry of Climate Change and Environmental Coordination document much of the original area where mangroves were planted has been degraded in the Indus Delta, primarily due to freshwater diversion, over-exploitation (wood, fodder, and grazing), and land-based pollution.

The Kyoto Protocol, an international treaty of which Pakistan is also a signatory, was established in 1997 and enforced in 2005. The treaty aimed to combat climate change and set mandatory emission reduction goals for developed nations.

According to the United Nations Framework Convention on Climate Change (UNFCCC), the Clean Development Mechanism (CDM) lets countries that promised to lower their emissions as part of the Kyoto Protocol, work on projects that reduce pollution in poorer countries. These projects can earn them credits called certified emission reductions (CERs), which help them meet their Kyoto goals.

Pakistan is currently among the top ten countries most impacted by climate change in the world. Officials say as a signatory of the Kyoto Protocol, Pakistan is also making efforts to mitigate and adapt to the effects of climate change. The Indus Delta mangrove plantation is a part of these efforts.




Male gardeners gesture for a group photo at an event to mark the start of the Delta Blue Carbon (DBC) - 2 project, aims to plant and restore mangroves, in Village Haji Doongar Jatt in Sujawal District on August 14, 2023. (AN Photo/ Zulfiqar Kunbhar)

 As per official figures, Pakistan’s emissions in 2018 totaled 489.87 metric tons of CO2 equivalent (MtCO2e), accounting for around 0.50 percent of global carbon dioxide emissions. This suggests that the DBC-1 and DBC-2 emissions credits projects will approximately be equal to half of the country’s emissions.

“The combined carbon offsetting of Pakistan through the DBC-1 and DBC-2 projects is anticipated to reach 240 million metric tons of carbon dioxide equivalent (MtCO2e),” Wagan noted.

“Within this, DBC-1 is projected to capture 140 million metric tons of carbon dioxide equivalent (MtCO2e) through carbon credits, while DBC-2 is expected to reduce approximately 100 million metric tons of carbon dioxide equivalent (MtCO2e) through carbon credits.”

As per official figures, Sindh has sold 3.1 million carbon credits as of now, worth $40 million. By 2075, Sindh is expected to create 140 million carbon credits in the Voluntary Carbon Market (VCM) — a global system to trade carbon offsets.




A woman gardener poses for a photo while planting mangroves in Village Haji Doongar Jatt in Sujawal District on August 14, 2023 to mark the start of the Delta Blue Carbon (DBC) - 2 project, which aims to plant and restore mangroves. (AN Photo/ Zulfiqar Kunbhar)

To date, Sindh has sold a total of $40 million worth of carbon credits in the carbon credit market through DBC-1. The value per carbon credit sold by Sindh has ranged from $12 to $50, reflecting variations in the market, Wagan said.

According to official statistics, combined foreign direct investment in DBC-1 and DBC-2 is projected to reach around $100 million, with an estimated investment of $60 million in DBC-1 and an anticipated investment of $40 million in DBC-2.

According to Waqar Hussain, a senior official at Environment, Climate Change & Coastal Development Department Sindh, the increasing mangrove cover in the Indus Delta would have a positive impact on the economy.

“Mangroves have the ability to absorb four times more carbon dioxide than other trees,” he said. “They act as protective barriers against cyclones and create habitats for aquatic life, benefiting fishing,” Hussain added.




A male gardener poses for a photo while planting mangroves in Village Haji Doongar Jatt in Sujawal District on August 14, 2023, to mark the start of the Delta Blue Carbon (DBC) - 2 project, which aims to plant and restore mangroves. (AN Photo/ Zulfiqar Kunbhar)

 


13 women-led startups graduate from program by Pakistan’s largest digital bank

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13 women-led startups graduate from program by Pakistan’s largest digital bank

  • Incubator program equipped women with skills, financial literacy and tools to upscale startups, says Mobilink Bank 
  • Pakistani startup Ecobricks bags “Best Startup Award” while Recycle Bin, EcoGrow each won Innovation Challenge 

ISLAMABAD: Thirteen women-led startups recently graduated from an incubator program offered by Pakistan’s largest digital microfinance bank, equipping them with skills, financial literacy and the tools to upscale their enterprises, Mobilink Bank said in a statement this week. 

International and local rights groups have spoken out against women being marginalized in conservative Pakistan, where they are often subjected to gender inequality, suffer from lack of work opportunities, face violence and sexual abuse. 

A graduation ceremony of Mobilink Bank’s ‘Women Inspirational Network (WIN) Incubator Program’ was held in Islamabad on Saturday, Mar. 8, on the occasion of International Women’s Day. The event was attended by key stakeholders, industry leaders, businesswomen, partner organizations and media representatives, Mobilink Bank said in a statement on Monday. 

“As a future-ready bank, we’re not just providing tools and opportunities but paving the way for lasting change,” Haaris Mahmood Chaudhary, chief executive officer and president of Mobilink Bank, said in a statement. “When a woman rises, she lifts her family and community with her.”

Graduates of ‘Women Inspirational Network (WIN) Incubator Program’ pose for a picture in Islamabad March 8, 2025. (Mobilink Microfinance Bank)

Pakistani startup Ecobricks received the “Best Startup Award” and a prize of Rs1 million ($3,573), while Recycle Bin and EcoGrow were each awarded Rs500,000 ($1,786) as winners of the Innovation Challenge. 

“The awards recognized promising ideas and provided crucial financial support to fuel these businesses’ continued growth and success,” the bank said. “The bank also announced the launch of the program’s second cohort to continue nurturing a thriving ecosystem for women-led businesses.”

Pakistan’s foreign secretary Amna Baloch was the chief guest at the event. She described the incubator program as a “resounding success.”

“The stories of these women inspire hope and motivate others to take the reins of their lives into their own hands,” Baloch said in a statement.


Pakistan oil regulator in crosshairs of refineries, marketing firms over ‘take or pay’ clause

Updated 50 min 41 sec ago
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Pakistan oil regulator in crosshairs of refineries, marketing firms over ‘take or pay’ clause

  • OMCs strongly oppose proposal due to fear of liquidity crises, supply disruptions and potential market exits
  • Refineries say oil marketing firms failing to lift product disrupts operations, threatens supply chain stability

ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) said this week it would mediate between refineries and Oil Marketing Companies (OMCs) to reach a “mutually agreeable” resolution on differences over the authority’s proposal to impose a “take or pay” clause in purchase agreements with refineries, which OMCs argue would unfairly burden them.

Pakistan has five oil refineries that process crude oil to produce refined petroleum products. Around 30 OMCs are licensed by the Oil and Gas Regulatory Authority (OGRA) to ensure the availability of petroleum products in the country.

A conflict emerged between local oil refineries and OMCs over OGRA’s proposal to include a take or pay clause in Sales Purchase Agreements (SPAs), with OMCs strongly opposing the move fearing liquidity crises, supply disruptions and potential market exits. Under the new contracts, oil marketing companies would have to pay at least cost to refineries if they are unable to pick up their allocated quantities of product.

The chairman of the Oil Marketing Association of Pakistan (OMAP), a body representing two dozen small and medium-sized Oil Marketing Companies (OMCs), wrote a letter to OGRA Chairman Masroor Khan this week to formally oppose the proposed clause, saying it would serve the interests of refineries and large OMCs at the expense of smaller players, further consolidating the monopolistic control of big fish in the oil sector. 

OGRA spokesperson Imran Ghaznavi told Arab News refineries and OMCs had been asked to enter into written sale and purchase contracts. 

“The take or pay clause means if an OMC does not buy the contracted quantity, it will still have to pay the purchase price or a penalty and vice versa,” he said. 

OMAP chairman Tariq Wazir Ali told Arab News on Monday the body had “expressed our grave concerns regarding the proposed imposition of the take or pay clause in the SPAs between refineries and OMCs as it poses significant risks to the financial sustainability of OMCs.” 

He said imposing a take or pay clause would hamper competition, discourage new entrants, and ultimately harm the overall efficiency of the petroleum supply chain. He also said the proposed clause overlooked refineries’ opportunistic behavior as they often withheld supply when prices were expected to rise, forcing OMCs into costly imports, and offloaded maximum stock when prices fell, causing financial losses to OMCs.

Given these circumstances, it was unreasonable to expect OMCs to bear inventory losses while refineries remained insulated from the market’s volatility, Ali said. 

“The proposed mechanism must be accompanied by a robust enforcement framework ensuring that refineries adhere to the same rules of fair play and supply commitments, regardless of market price trends,” he added, urging OGRA to convene an inclusive consultative meeting with equal representation of all stakeholders, including small and medium OMCs, before finalizing a decision. 

“MUTUALLY AGREEABLE CONTRACTS“

The conflict has emerged after five leading oil refineries wrote a letter to the OGRA chairman, arguing that OMCs had frequently failed to pick up agreed quantities of High-Speed Diesel (HSD) and Motor Gasoline (MOGAS), which had disrupted refinery operations and threatened supply chain stability. The refineries said while they maintained commercial agreements with OMCs, it was OGRA’s responsibility to enforce compliance with these contracts.

The refineries pointed to Rule 35(g) of the Pakistan Oil (Refining, Blending, Transportation, Storage, and Marketing) Rules 2016, which mandates that local production must be prioritized before allowing imports. Keeping this in mind, they have supported OGRA’s suggestion of introducing a take or pay clause to ensure product uplift but say it should be implemented through mutual agreement and strict regulatory oversight. 

“The engagement sessions with the OMCs will start soon,” OGRA spokesperson Ghaznavi said, “and OGRA will, in the best national interest and for achieving efficiency in the oil supply chain, mediate between refineries and OMCs for a mutually agreeable sale and purchase contracts.”


Pakistan launches first dematerialized ID card on silver jubilee of database authority 

Updated 10 March 2025
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Pakistan launches first dematerialized ID card on silver jubilee of database authority 

  • Digital Pakistan initiative aims to expand knowledge-based economy, spur socio-economic growth using digital technologies
  • Pakistan has made considerable progress in its digital transformation journey with rapid expansion of mobile broadband networks 

ISLAMABAD: Pakistan’s National Database and Registration Authority (NADRA) marked its silver jubilee on Monday, launching the country’s first dematerialized ID card to commemorate 25 years in legal identity management and national database integration.

The launch of the new card is part of the government’s vision of a Digital Pakistan, where citizens will have digital certificates instead of material ID or, at least, in addition to material ones.

“Federal Minister for Interior and Narcotics Control Syed Mohsin Raza Naqvi commended the launch of the dematerialized ID as a step toward digital identity,” NADRA said in a statement. 

“With the launch of this feature in the Pak ID Mobile Application, citizens will no longer need to carry physical ID cards. Moreover, digital verification systems will soon be implemented to facilitate authentication for various services under the World Bank-funded Digital Economy Enhancement Project.”

A pilot project for the fully digital identity will be launched on Aug. 14, 2025 to coincide with Pakistan’s Independence Day.

Pakistan has made considerable progress in its digital transformation journey with the rapid expansion of mobile broadband networks over the last decade. Today, nearly 80 percent of the adult population lives in areas served by mobile broadband (3G or 4G) networks, compared to 15 percent in 2010. But experts say more work must be done to ensure that connectivity reaches everyone, as only 22 percent of the population is subscribed to mobile Internet. 

To this end, Digital Pakistan is a flagship initiative of the government to expand the knowledge-based economy and spur socio-economic growth using digital technologies. 

“The vision with regards to Digital Pakistan Policy is to become a strategic enabler for an accelerated digitization ecosystem to expand the knowledge based economy and spur socio- economic growth,” according to a government policy document outlining the strategy.


No Pakistani players on ICC Champions Trophy 2025 team of the tournament

Updated 10 March 2025
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No Pakistani players on ICC Champions Trophy 2025 team of the tournament

  • India won ICC Champions Trophy 2025 on Mar. 9 
  • Pakistan crashed out of home trophy without a win

ISLAMABAD: The International Cricket Council (ICC) on Monday announced its ‘Team of the Tournament’ for the Champions Trophy 2025, which concluded last week, with no Pakistani player making it on the prestigious list.

The ninth edition of the Champions Trophy saw India being crowned as the winners on Mar. 9 after they overcame New Zealand in the final. Pakistan ended their campaign in the home trophy without a win.

“Several exceptional performers lit up the tournament with the bat and ball,” ICC said on its website. “The best of them made it to the Team of the Tournament.”

The team includes six players from India, four from New Zealand and two from Afghanistan.

Here’s what the side looks like:

1. Rachin Ravindra (New Zealand)

251 runs, 62.75 average, two hundreds

2. Ibrahim Zadran (Afghanistan)

216 runs, 72 average, one hundred

3. Virat Kohli (India)

218 runs, 54.5 average, one hundred

4. Shreyas Iyer (India)

243 runs, 48.6 average, two fifties

5. KL Rahul (wk) (India)

140 runs, 140 average, 42 highest score*

6. Glenn Phillips (New Zealand)

177 runs, 59 average, two wickets, five catches

7. Azmatullah Omarzai (Afghanistan)

126 runs, 42 average, seven wickets, one five-wicket haul

8. Mitchell Santner (c) (New Zealand)

Nine wickets, 26.6 average, 4.80 economy

9. Mohammed Shami (India)

Nine wickets, 25.8 average, 5.68 economy, one five-wicket haul

10. Matt Henry (New Zealand)

Ten wickets, 16.7 average, 5.32 economy, one five-wicket haul

11. Varun Chakaravarthy (India)

Nine wickets, 15.1 average, 4.53 economy

12th player: Axar Patel (India)

Five wickets, 39.2 average, 4.35 economy


Geopolitics and lack of buzz blight Champions Trophy’s return

Updated 10 March 2025
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Geopolitics and lack of buzz blight Champions Trophy’s return

  • Indian board BCCI stuck to their policy of not touring Pakistan because of strained political ties 
  • Allowing India to play all their matches in Dubai robbed Pakistan of honor of hosting the final 

Geopolitical reality, lack of buzz in host nation Pakistan and mediocre cricket in general meant Champions Trophy’s much-anticipated return to the calendar did not go according to plan for the governing International Cricket Council (ICC).
The one-day international (ODI) tournament served as an ICC fundraiser but offered no assurance about the future of a format battling for relevance in a cricket landscape ruled by Twenty20 leagues either.
Financial engine India’s participation, a key factor behind the commercial success of any cricket tournament, was in doubt after Pakistan bagged the hosting rights for the first ICC event in the country since 1996.
The Indian board (BCCI) stuck to their policy of not touring Pakistan because of the strained political ties between the bitter neighbors, who play each other only in ICC events.
Like for the 2023 Asia Cup in Pakistan, a ‘hybrid model’ was agreed on under which India were allowed to play their matches in Dubai to salvage a tournament, which had been discontinued after the 2017 edition.
Under the agreement running until 2027, Pakistan will play in a neutral venue for any ICC event, like next year’s Twenty20 World Cup, scheduled in India.
Reigning T20 world champions India beat New Zealand in Sunday’s final to prove their credentials as a white-ball behemoth.
India have lost just one match — the final of the ODI World Cup in 2023 — in their last three ICC events and probably did not require what many called an “unfair advantage” of playing all their matches in Dubai.
“I feel sorry for India’s cricketers,” award-winning cricket writer Nicholas Brookes told Reuters.
“They are an outstanding team – in my mind, streets ahead of their competition regardless of conditions, and one of the greatest white-ball sides the game has seen.
“This tournament should have been their victory lap, but their brilliance has been somewhat overshadowed by constant questions about unfair advantages.”
Allowing India to play all their matches in Dubai robbed Pakistan of the honor of hosting the final and disrupted the schedule of the knockout matches.
South Africa were made to take a farcical 18-hour trip to Dubai in anticipation of a semifinal against India before flying back to Pakistan to face New Zealand.

“BENDING OVER BACKWARDS”

The whole affair made the ICC, currently headed by former BCCI secretary Jay Shah, look weak in front of the world’s richest cricket board.
The scheduling also favored India, who had a week’s rest between their last two group matches, while Afghanistan played twice in three days.
“That looks like the ICC putting finances ahead of fairness,” said Brookes, whose “An Island’s Eleven” charts the history of Sri Lankan cricket and won the Wisden Book Of The Year award in 2023.
“Some people will naturally think that the governing body is bending over backwards to accommodate India.”
Defending champions Pakistan looked under-prepared for the tournament, both on and off the field.
Eleventh-hour facelift to stadiums in Karachi and Lahore, sparse crowd and three washouts dampened the spirit among the locals.
Adding to their woes, Mohammed Rizwan and his men finished bottom of Group A after a winless campaign that included a defeat by arch-rivals India.
An injury-ravaged Australia fielded a second string pace attack with Steve Smith, who quit ODIs after their semifinal exit, leading them in the absence of regular skipper Pat Cummins.
New Zealand all-rounder Rachin Ravindra bagged the player-of-the-tournament prize, while fellow Black Cap Glenn Phillips redefined fielding with gravity-defying catches and India’s Virat Kohli proved he is not a spent force yet but the cricket was largely mediocre.
Afghanistan could not make the last four but impressed on their Champions Trophy debut while former champions England are searching for a new captain after their winless campaign prompted Jos Buttler to step down.