AccScience Publishing / AJWEP / Online First / DOI: 10.36922/AJWEP025160121
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ORIGINAL RESEARCH ARTICLE

Exploring stakeholder perspectives on barriers to green financing in Pakistan’s transportation sector

Umelaila Shah1 ,  Atiqah Binte Fayyaz2 ,  Hamza Iftikhar1* ,  Rana Sakandar Hayat3
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1 Department of Government of Public Policy, School of Social Sciences and Humanities, National University of Science and Technology, Islamabad, Pakistan
2 School of Interdisciplinary Engineering & Sciences, National University of Science and Technology, Islamabad, Pakistan
3 Riphah Institute of Public Policy, Riphah International University, Islamabad, Pakistan
AJWEP, 025160121 https://doi.org/10.36922/AJWEP025160121
Received: 18 April 2025 | Revised: 18 June 2025 | Accepted: 20 June 2025 | Published online: 16 July 2025
© 2025 by the Author(s). This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution 4.0 International License ( https://creativecommons.org/licenses/by/4.0/ )
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Abstract

Green finance plays a key role in closing the funding gap for sustainable development and environmental initiatives. In Pakistan, the transport sector contributes over 43% of emissions, causing significant air pollution and public health risks in urban areas. While projects like Karachi’s Green Bus Rapid Transit (BRT) aim to address these issues, the implementation of green financing remains limited due to weak financial incentives, institutional gaps, and low stakeholder engagement. Despite the National EV Policy’s target of 30% electric vehicle penetration by 2030, adoption remains below 1%. This study investigates how green financing can enable sustainable transportation in Pakistan by identifying regulatory, financial, and institutional challenges and opportunities. It analyzes mechanisms such as green bonds, public–private partnerships, and climate funds to assess their potential in addressing barriers to low-carbon mobility. Key challenges identified include the lack of a structured green finance framework, restricted access to international climate finance, and misaligned policies. The research employs thematic analysis, policy matrix evaluations, and meta-analysis to assess financial viability and policy effectiveness. Drawing on stakeholder interviews and a review of national strategies and global best practices, findings emphasize the urgent need for a national green finance strategy, improved climate finance access, and coordinated policy action. Advancing sustainable transport – through EV scale-up, BRT expansion, and clean mobility – demands collaboration across government bodies, financial institutions, and the private sector to build a supportive financial ecosystem, reduce urban air pollution, and align with Pakistan’s climate goals.

Keywords
Green financing
Sustainable transportation
Electric vehicles
Climate finance
Public–private partnerships
Funding
None.
Conflict of interest
The authors declare no conflicts of interest.
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Asian Journal of Water, Environment and Pollution, Electronic ISSN: 1875-8568 Print ISSN: 0972-9860, Published by AccScience Publishing
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