The Pakistan Clean Environment Fund is back in business after more than a decade of inactivity, with the government moving to activate the dormant fund to raise money for environmental protection work.
The decision came on Monday from the Cabinet Committee on State-Owned Enterprises, chaired by Finance Minister Muhammad Aurangzeb. The committee approved a request from the Ministry of Climate Change and Environmental Coordination to bring the Clean Environment Fund Company back to life under the Pakistan Environmental Protection Agency.
The company will get a fresh board as part of the revival. Two ex-officio directors and three independent directors will be appointed, according to an official statement reported by Dawn.
Pakistan Clean Environment Fund: a decade of dormancy
The fund was set up in 2015 under section 42 of the Companies Ordinance as a non-profit entity. Its purpose was to support environmental protection, conservation, rehabilitation and improvement by helping to mobilise and use resources for green initiatives.
That purpose was never put into practice. The company held no board meetings and stayed inactive for more than ten years, even as state auditors repeatedly warned about the failures.
The Auditor General of Pakistan pointed out that the fund failed to meet its core objectives. It did not hold board meetings, and it did not meet the statutory requirement to hold even annual general meetings, as required under Section 132 of the Companies Act.
The revival therefore starts with basic governance. A board must be in place before the company can raise or spend money, and the new directors will be the first to test whether the fund can work as originally planned.
Why the revival matters now
Pakistan ranks among the lowest countries on a global environment index, and the pressures are visible in daily life. Lahore has repeatedly ranked among the most polluted cities in the country, as Feature Pakistan has reported on Lahore’s worsening smog. Air quality, water stress and waste management all demand steady funding, and a dedicated environment fund could give that work a separate channel outside annual budget allocations.
The fund also fits a wider shift towards cleaner energy and industry. Feature Pakistan has reported on a $2.25 billion lithium battery plant planned in Rawalpindi, a project that shows how much capital is now moving into green manufacturing. A working environment fund could support smaller conservation and rehabilitation projects that large industrial schemes do not cover.
At the same time, the fund’s own history is a warning. A body that stayed dormant for a decade despite audit warnings will need more than a board to become useful. It will need a clear funding plan, published accounts and projects that show results.
What happens next
The immediate step is the appointment of the five directors. After that, the company must set out how it will raise money, which projects it will support and how it will report its spending.
The committee also approved new board members for a couple of other state-owned enterprises at the same meeting, but the environment fund was the notable decision, because it ends a dormancy that lasted longer than the fund’s active life ever did.
For now, the revival is a governance decision, not a spending announcement. No project list and no funding target have been made public yet. The test will come when the fund announces its first real programme and shows that the money reaches the environmental work it was created to support.
Frequently asked questions
What is the Clean Environment Fund Company?
It is a non-profit company set up in 2015 to mobilise finances for environmental protection, conservation, rehabilitation and improvement in Pakistan.
Why was the fund dormant?
The company stayed inactive for more than a decade. It held no board meetings and failed to meet statutory requirements, including the duty to hold annual general meetings, despite repeated warnings from state auditors.
What did the government decide on Monday?
The Cabinet Committee on State-Owned Enterprises, chaired by Finance Minister Muhammad Aurangzeb, approved activating the fund under the Pakistan Environmental Protection Agency and appointing two ex-officio and three independent directors.
Has the fund announced any projects yet?
No. No project list or funding target has been made public so far. The revival begins with governance, and project details will follow once the new board is in place.
