In global finance, Environmental, Social and Governance (ESG) principles are being marketed as a quiet revolution. Capital, we are told, has discovered a conscience, and sustainability now walks hand in hand with profitability. With ESG-linked assets forming a growing share of global investment, the message for Pakistan seems straightforward: align with ESG or risk being left behind.

But before embracing this narrative, a harder question must be asked. Is ESG in Pakistan becoming a genuine tool to protect people and the planet, or is it drifting toward yet another well-crafted framework that looks impressive on paper while leaving structural damage intact?

Pakistan sits at the intersection of overlapping crises. It ranks poorly on global competitiveness, remains among the most climate-vulnerable countries and faces recurring floods, heatwaves, energy shortages and widening inequality. These are not distant threats but lived realities. In theory, ESG frameworks are designed to address precisely these risks. In practice, however, the danger lies in mistaking formal adoption for real transformation.

There is visible institutional momentum. The Pakistan Stock Exchange (PSX) and the Securities and Exchange Commission of Pakistan (SECP) have introduced ESG task forces, roadmaps, disclosure guidelines and international partnerships. These moves signal awareness and intent. Yet intent alone does not rebuild washed-away villages, clean polluted air or stabilise fragile livelihoods.

Regulation lies at the heart of........

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