Reduced productivity, premature deaths and healthcare costs from poor air costing Pakistan 6.5 % of its GDP
Islamabad,September 7, 2024 (TW) __ Vehicular growth has happened at the cost of the human economy in Pakistan. Air pollution cuts short average life by 5 years in most polluted areas of Pakistan. Blind growth strategies, lack of emission standards, and enforcement of regulations in the transport sector have cost citizens their lives, increased disease burden and healthcare costs mainly in urban areas. Reduced productivity, work absences, and premature deaths from air pollution dry the revenue stream and large-scale manufacturing costs the economy 6.5% of the country’s GDP/year. Fair Finance Pakistan coalition shared in its media statement to mark the International Day of Clean Air for Blue Skies, observing urgent need for stronger partnerships, increased investment, and shared responsibility to combat air pollution.
Pakistan Economic Survey 2023-24 reports motor cars hold the largest share (4.9 million) of the 35 million registered motors in Pakistan. Big auto manufacturers in Pakistan including Indus Motors, Honda Atlas and Hyundai reported record sales in 2024 after a brief slump last year. Car sales in Pakistan rose to 120 percent on year to year basis in the fiscal year ending 2024. In June 2024, auto sales jumped to 13,284 units and touched an 18-month high. A stable currency and a reduction in interest rates by banks are cited as major reasons behind the rise in car sales.
In its statement, Fair Finance Pakistan noted, “As populations are increasingly concentrated in urban areas, the number of people living near roadways are exposed to traffic-related air pollution from nitrogen oxide. Exposure to NO2 in confined environments, such as tunnels, increase health risks, penetrates deep into the lungs and affect human organs, including the brain and lead to neurodevelopmental disorders. These associated health risks from air pollution translate into lower productivity and diminished individual cognitive and physical capabilities, meaning lower incomes and slow economic growth in the long run.
In his X statement, Asim Jaffry, Country Program Lead, Fair Finance Pakistan emphasized, “Air pollution is an avoidable problem. We need clear policy directions to avoid this problem. Multi-lateral financial institutions should increase significant resources to help Pakistan’s private sector move towards net-zero transition. Commercial banks must include air quality in their risk assessments and sustainable due diligence before lending money to companies.”
In his message, Hammad Naqi Khan, Director General, WWF Pakistan said, “Pakistan’s average PM 2.5 levels (73.7 µg/m3) are more than 14 times higher than the WHO PM2.5 annual guideline. Every city in Pakistan included in the 2023 World Air Quality Report measured concentrations above 30 µg/m3, at least six times the recommended WHO annual PM2.5 guideline. The government has enacted the National Clean Air Policy, Punjab Clean Air Action Policy and Punjab Smog Policy, however, there is a need for strong public-private partnerships to ensure the implementation and enforcement of these policy measures.”
Mukhtar Ali, Executive Director, Center for Peace and Development Initiatives (CPDI) strongly recommended the banks in Pakistan to adopt clear policies on financial disclosure in line with the requirements of citizens’ right to information, as guaranteed through Article 19A of the Constitution. He particularly emphasized the need to disclose all policies related to investment, human resources, human rights, climate change, complaint mechanisms and financing on websites to ensure transparency and enable peoples’ right to information. “Fairness is possible only when maximum information freely flows in a society.”
FFP Coalition member Nadeem Iqbal, CEO, TheNetwork for Consumer Protection said channeling technical support in transferring clean technologies will promote SDG on sustainable consumption, directly contribute to lower air pollution. Reduce, recycle and reuse should be the buzzwords for all consumer items.
In her message, Ume Laila Azhar, Executive Director, HomeNet shared 68,100 children under five years of age died in Pakistan in 2021 due to high exposure to air pollution. Poor air impacts children’s and women’s health at all stages of life and hinders their participation in economic growth of the country.
“Regulatory authorities must set robust emissions standards, smog checks and incentives for clean vehicles,” Hussain Jarwar, CEO, Indus Consortium and member of Fair Finance Pakistan Coalition shared in his message.
Fair Finance Pakistan Coalition recommends policy direction and implementation towards fuel compliance standards of Euro 6 and 7 to lessen air pollution in Pakistan.