Federal Climate Change Minister Musadik Malik on Wednesday announced plans for a $10 million clean-air startup fund, pledging domestic resources to support pollution solutions.
Speaking at the Pakistan National Clean Air Conference 2026, Malik said the government had approached development partners before deciding to finance the initiative itself.
He said authorities expected approval of the fund’s board on Thursday, October 29.
Malik framed the proposed initiative as an obligation to future generations rather than a grant or loan. He said Pakistan would pursue clean-air measures with or without external support.
However, he acknowledged the World Bank, Asian Development Bank, UNICEF and German development agency GIZ for supporting climate-related initiatives.
Pollution costs Pakistan 6.5% of GDP, minister says
Malik put air pollution’s economic burden at the equivalent of 6.5% of Pakistan’s gross domestic product.
He linked that cost to illness, hospitalisation and the financial pressures families face when pollution damages their health.
The minister described polluted air as a human-induced crisis shaped by policy decisions and economic activity.
Poor and vulnerable communities bear the heaviest consequences because they have fewer resources to protect themselves, he said.
He highlighted the exposure of children, street vendors and farmers, contrasting their circumstances with wealthier households that can afford air purifiers.
Malik also referred to patients with chronic obstructive pulmonary disease who depend on oxygen and medication.
His remarks placed public health and household finances at the centre of the government’s clean-air agenda.
Practical solutions must protect livelihoods
The minister urged policymakers to recognise that agricultural communities contributing to pollution also suffer its consequences.
He called for practical measures that address environmental damage while taking affected families’ livelihoods into account.
Malik said cleaner air required engineering solutions, effective policies and financial commitments, rather than declarations and slogans.
He reaffirmed the government’s willingness to work with development partners on measures that reduce pollution and protect public health.
The government’s announcement did not specify application dates, eligibility criteria or the financing arrangements that individual startups would receive.
For prospective applicants, those operational details remain important as the proposed fund moves towards implementation.
Fund follows wider clean-air investment
The announcement comes alongside existing efforts to strengthen air-quality management in Pakistan.
In March 2025, the World Bank approved a $300 million concessional loan for the Punjab Clean Air Program.
That programme supports Punjab’s Smog Mitigation Action Plan across transport, agriculture, industry, energy and municipal services.
It aims to reduce fine particulate pollution, known as PM2.5, by 35% over a decade, benefiting 13 million residents of Lahore Division.
Planned interventions include 5,000 super seeders to reduce crop-residue burning and 600 electric buses to encourage public transport use.
The programme also provides for expanded air-quality monitoring and two fuel-testing laboratories.
Those measures illustrate the range of agricultural, transport and monitoring interventions already included in Pakistan’s broader response to air pollution.
