Fundamental direction of Pakistan economic growth model should be synchronized with green growth to eliminate black footprint in the process of economic development and sustainable growth.
Prof. Dr. Muhammad Naveed
To uplift economic advancement and financial capitalization, green growth has become strategy of economic development across emerging and advanced countries. In purview of economic turmoil and global climate change, green economy has become underlying mechanism beyond environmental economics and has become mainstream politics and business drive across the world.
In addition, consistent with Principals of Responsible Investment (PRI), United Nations 2023 Agenda for Sustainable Development Goals (SDGs) has signified the importance of Sustainability Index through accounting and practice-based measures.
To improve well-being of people and combating environmental risks, Belt and Road Initiative (BRI) is a critical component of achieving green transitions in regional Economy of Pakistan enhancing sustainable development.
Moreover, it is imperative compliance with SDGs-2023 which is Global Agenda of United Nations. Under purview of China Pakistan Economic Corridor (CPEC), BRI not only contributing to national development of Pakistan but also regional connectivity, but also opened manifold avenues of progressive cooperation in sectors including public welfare, mining, telecommunications, sciences and technology and agriculture with significant prospect towards economic and financial growth.
Though significance of factors contributing towards green economy has been analyzed from several directions; however, comparatively less attention has been devoted by research scientists and financial economists towards combine perspective of Financial Technology and Green Finance on economic growth.
From this perspective of financial development, mapping of comprehensive index to evaluate green growth of regional economy based on settings of financial technology through CPEC governance mechanism is latent need.
Learning lessons from China’s fast economic growth which was long been achieved at the adverse cost of environmental pollution. Undoubtedly, China has emerged as largest and fast-growing economy of the world; however, its economic growth is accompanied by serious environmental pollution, and this growth model not seems sustainable in long run.
Hence, it necessitates that fundamental direction of Pakistan economic growth model should be synchronized with green growth to eliminate black footprint in the process of economic development and sustainable growth.
Previous school of thought has considered environmental protection costly and feared that sustainable development might inhibit countries economic growth. Modern era of 21st Century supported with Digital Transformation signifies strategic level importance of SDGs to combat climate change and bring diversity, equality, inclusiveness and belonginess.
From sustainable development point of view to promote economic development, green growth has become instrument to keep long-term balance between economic growth and environmental protection.
In accordance with Financial Stability Board (FSB), Fintech is huge triumph towards scientific progression, technological advancement and economic development. It brought about financial plexus that support creation of flexible new business models (FBMs), processes, applications and products that capitalized significant impact and contribution in capital markets, financial institutions and enhancement of financial services.
Fintech is a broader extension of financial ecosystem with innovation drives in borrowing and lending mechanism, insurance, credit markets and smart contracts. These innovations including block-chain-assisted applications, cryptocurrencies and smart contracts and digital financial governance regulations.
Development of green growth index not only develop nexus between government spendings’ and green economic performance through financial technology but also aligns the concept of green economy into mainstream politics and business, as well as key component of UN-PRI 2030 Agenda for Sustainable Development Goals (SDGs).
The writer is
Dean Management Sciences, Bahria University, Islamabad.
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