Dormant green fund revived
ISLAMABAD: Ranked among the lowest on the global environment index, Pakistan on Monday decided to activate the Clean Environment Fund Company (CEFC), which remained dormant for more than a decade after its creation as a non-profit entity, to mobilise finances for environmental protection initiatives. The Cabinet Committee on State-Owned Enterprises (CCoSOEs), chaired by Finance Minister Muhammad…
Pakistan has revived the dormant Clean Environment Fund Company (CEFC), which had lain idle for over a decade after its inception in 2015. The decision, taken by the Cabinet Committee on State-Owned Enterprises chaired by Finance Minister Muhammad Aurangzeb, aims to mobilize funds for environmental protection initiatives.
The revival saw the appointment of two ex-officio and three independent directors by the Ministry of Climate Change and Environmental Coordination, operating under the Pakistan Environmental Protection Agency. This move follows repeated warnings from state auditors about the company's statutory violations, including its failure to hold board meetings and annual general meetings as mandated by the Companies Act.
Established in 2015 under section 42 of the Companies’ Ordinance, the CEFC was initially designed to support environmental protection, conservation, rehabilitation, and improvement through the facilitation of resource mobilization and utilization for environmental initiatives. Despite these provisions, the company remained dormant, with the Auditor General of Pakistan highlighting its inability to fulfill its core objectives.
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