ISLAMABAD, July 4: Returns from high economic growth were being minimised in Pakistan due to degradation of environment. This was the unanimous view of a number of speakers at the launch of a three-year programme titled “Building Coalitions for Change to Implement Pro-Poor Environmental Fiscal Reforms (EFR) in Pakistan” on Tuesday.

The project launched by World Conservation Union (IUCN) will cost Swiss Francs 1.25 million (approximately Rs56 million). It is being funded by the Swiss Agency for Development and Cooperation (SDC).

The project aims at enhancing national capacity to research, formulate, review and implement comprehensive environmental fiscal reforms. It will engage governments at the federal and provincial levels to build support for EFR.

“We are over estimating our profits. And we are ignoring the environmental deterioration which is occurring from economic advancement,” said Chief of Research, Pakistan Institute of Development Economics, Dr Rehana Siddiqui, during her presentation.

As much as 50,000 tons of waste was being generated per day. Only 20-25 per cent waste was collected, but not properly disposed of. Vehicular pollution had increased 15-20 times more than internationally acceptable limits, said Dr Siddiqui.

She said food processing industries, leather, chemical and electrical goods industries were major waste generators. They were responsible for discharge of liquid effluents, and used outdated production technology.

“Reviewing low prices of water can rationalise water usage in the irrigation sector. And leather factories can extract more than 90 per cent of chrome from waste water they dump into water bodies and reuse it. It is being done in Kasur. And they are causing less harm to the environment.”

Another area of focus was forestry. “The total forest cover in Pakistan is four per cent, and it’s decreasing fast. It should be 20-25 per cent according to international requirements. We are also worried about the types of trees being planted as substitutes for the old ones being cut,” she said.

The project will work on understanding options and the feasibility of EFR through research in different fields (solid waste, sanitation, water charges, tourism, land tenure rates, recovery charge system etc.)

Usman Iftikhar, an environmental economist from IUCN Asia Region, highlighted the issues, basic concepts and best global practices for environmental fiscal reforms for poverty reduction. He explained the link between poverty reduction and environmental and fiscal benefits of EFR.

Denis Bugnard, country director, SDC Pakistan, said the EFR project presented a great challenge. He stressed on educating citizens on how to protect environment.

Mr Bugnard stressed on the need to focus in the earthquake- hit area as there was a lot of construction work going on. He further hoped that the project would build new alliances with donors and funding companies for future implementation of such schemes.