Pakistan is emerging as leader not only in the region but the world due to its unprecedented efforts to enhance inclusive wealth comprising stocks of produced, natural and human capital.
The Ministry of Climate Change has been continuously compiling data about its inclusive wealth and sharing it with the United Nations Environment Programme (UNEP). According to the official data, Pakistan began the process of integrating inclusive wealth estimations as part of natural capital accounts. Pakistan is one of the first nations to produce inclusive wealth estimates following the publication of the Dasgupta Review.
The massive restoration efforts particularly through the Ten-Billion Tree Tsunami Programme demonstrated growth in natural capital, created green jobs and restored the degraded land. The carbon sequestered and stored through restoration helped Pakistan in bringing its economy in congruence with the net zero target.
The data showed that Pakistan’s inclusive wealth increased at an average of 2.3 per cent annually in absolute terms. Analysis of the individual capital categories showed that human capital and produced capital grew at a rate of 2.9 per cent and 3.2 per cent respectively, while natural capital declined negligibly, around 0.1 per cent.
However, the last many years have shown evidence of an environmental turnaround, with forests, grassland, sparsely vegetated areas and water bodies all growing in area. An official said, “The inclusive wealth index measures the wealth by carrying out a comprehensive analysis of a productive base. That is, it measures all of the assets from which human well-being is derived, including manufactured, human and natural capital.”
He said, “It is a much more accurate measure of economic progress since it accounts for all five capital factors including financial, manufactured, human, social and natural. Pakistan has been constantly showing progress in inclusive wealth index for last many years.”