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 Aurangzeb, took the decision and also approved the induction of new board members to a couple of SOEs.

The committee appro­ved a request from the Mi­nistry of Climate Chan­ge and Environ­me­ntal Coordina­tion to activate the CEFC under the Pakistan Environmental Protection Agency (PEPA) by appointing two ex-officio and three independent directors, an official statement said.

The company was established in 2015 under section 42 of the Companies’ Ordinance to support environmental protection, conservation, rehabilitation, and improvement by facilitating the mobilisation and utilisation of resources for environmental initiatives, but it remained inactive despite repeated warnings from state auditors about statutory violations.

The Auditor General of Pakistan pointed out that the CEFC failed to meet its core objectives because it did not hold board meetings and remained dormant, violating the statutory requirement to hold even annual general meetings mandated under Section 132 of the Companies Act.

Published in Dawn, October 27th, 2026