Driving Green PFM Reform in Punjab
The Local Government & Community Development Department (LG&CDD) Punjab, together with the GIZ Participatory Local Governance (PLG) Programme and GOPA Worldwide Consultants, convened an inception workshop on Green Public Financial Management at PC Bhurban to begin integrating climate considerations into provincial and local budgeting.
Senior representatives from LG&CDD, the Finance Department, the Planning & Development Department and pilot municipal committees attended the event to discuss how fiscal policy can better support climate resilience and sustainable local development. The workshop emphasised practical steps to embed Green PFM across government systems.
Participants identified capacity building priorities and explored pilot reforms such as Climate Budget Tagging (CBT), climate-sensitive Budget Call Circulars and the preparation of Citizen Budgets to make public spending more transparent and climate-aware. These measures were presented as tools to help municipalities prioritise resilience in planning and service delivery.
Attendees agreed on a roadmap to test these reforms at the municipal level and to scale effective approaches across Punjab. There was a clear commitment from all partners to mainstream Green PFM reforms into routine public finance practice to strengthen local systems for a more climate-resilient province.
By linking fiscal instruments with resilience objectives, Punjab aims to improve local governance outcomes while responding to the increasing challenges posed by climate variability, ensuring budgets support long-term sustainability and service delivery.



