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PESHAWAR: Pakistan’s northwestern Khyber Pakhtunkhwa (KP) government on Thursday announced it had completed its first forest carbon credit mapping, saying that projects on over two million hectares of land can be used to generate $4 billion in revenue and create over 50,000 jobs. 

Carbon credits are permits that allow owners— governments or companies— to emit a certain amount of carbon dioxide or other greenhouse gases (GHGs). The United Nations allows polluting companies or countries to buy carbon credits to offset their emissions. These credits can be sold in international carbon markets. 

Forest carbon credit mapping refers to the process of using satellite images, drones, and data to measure the forest land of a particular area. This estimates how much carbon the trees in that given area are absorbing. This data is then used to identify areas where projects can be launched to earn carbon credits.

A ceremony was held at the Chief Minister’s House in Peshawar to mark the launch of KP’s first Forest Carbon Credit Mapping Report, the chief minister’s office said in a statement. The report was launched by Chief Minister Ali Amin Gandapur. 

“Through this mapping, done with the help of modern technology, ten potential projects covering 2.2 million hectares of forest land in the province have been identified,” the statement said.

“These projects can absorb more than 400 million tons of carbon,” the statement added.

The report further said these projects can earn a revenue of $4 billion and create over 50,000 green jobs. Meanwhile, Gandapur said the mapping will serve as a “comprehensive model” for the province’s environmental, economic, and social development.

“The forest area of Khyber Pakhtunkhwa makes up 46 percent of the country’s total forested area,” Gandapur was quoted as saying in the statement. “The forests of the province have the capacity to absorb 50 percent of the country’s carbon.”

The KP chief minister said the provincial government is expected to earn $100 million annually from carbon credits. He said the KP government is undertaking efforts to further increase the forest area of the province.

Pakistan is consistently ranked as one of the world’s worst-affected countries due to climate change. Monsoon rains in the country since June 26 alone have killed around 190 people and injured several others. 

Unusually heavy rains triggered flash floods in June 2022 that killed over 1,700 people and caused damages of over $33 billion, with large swathes of crops and critical infrastructure destroyed by raging currents.

ISLAMABAD: Pakistan lost nearly $1 billion in foreign direct investment (FDI) in the telecom sector in just one year, with inflows plunging from $1.67 billion in 2021–22 to $750 million in 2022–23, according to a new report by the Asian Development Bank (ADB).

The dramatic decline reflects growing unease among investors about Pakistan’s digital infrastructure landscape, which suffers from high taxation, poor spectrum allocation, limited fiber penetration and regulatory unpredictability. While demand for mobile Internet continues to grow, with over 138 million mobile broadband users as of late 2024, the enabling environment for investment has worsened, especially amid Pakistan’s macroeconomic volatility.

Fixed broadband penetration remains at just 1.3 percent, and only 14.8 percent of cell towers are connected to fiber, making it difficult to meet rising data demands or prepare for 5G deployment. The report notes that the telecom sector has contributed over PRs1.28 trillion to the national treasury in the past five years, yet sustained investment in digital infrastructure has failed to materialize.

The bank has warned that without urgent reforms, the sector may fail to deliver on its potential as a key enabler of digital transformation and economic growth.

“The telecom sector in Pakistan has experienced a decline in revenues and foreign investment, which reflects a very challenging business environment,” the ADB wrote in its Pakistan Digital Ecosystem Diagnostic Report, released in July 2025.

The report singles out Pakistan’s spectrum auction model as a major constraint. Starting prices are set in US dollars and often considered unaffordable by private operators, discouraging participation and delaying the deployment of next-generation networks.

“The spectrum auction starting prices and commercial conditions need to be reasonable and attractive for operators,” the ADB said. “This would facilitate the timely and cost-effective launch of 5G technology and enable new applications and innovations in the digital economy.”

Taxes imposed by both federal and provincial authorities are described as among the highest globally for the sector. Right-of-way (RoW) fees, charged annually in Pakistan, further burden service providers, unlike in countries like India where such fees are levied only once and at a nominal rate.

To reverse the downward trend, the ADB has recommended a long-term tax policy guarantee, reform of spectrum pricing mechanisms, and a unified national RoW regime. It also called for deeper engagement with provincial governments to generate “anchor demand” for fiber services through public institutions like schools and hospitals in tier 2 and tier 3 cities.

The report emphasizes that the telecom sector must be viewed not only as a commercial domain but as foundational infrastructure for Pakistan’s future. Without decisive action, it warned, digital inequality will widen and Pakistan’s competitiveness will suffer.

“Pakistan’s digital infrastructure is dragging down its overall digital readiness and economic performance,” the ADB concluded.