The Green Climate Fund (GCF) has pledged $15 million to Sarmayacar, a Pakistani venture capital firm, to help fund startups focused on combating climate change. Sarmayacar’s CEO, Rabeel Warraich, confirmed the commitment and stated that this funding would play a crucial role in their new fund, which is projected to reach up to $40 million. The fund is aimed at startups in sectors such as energy, electric mobility, water treatment, recycling, sustainable agriculture, and carbon accounting.
The GCF funding comes as Pakistan continues to recover from extreme weather events, including devastating floods in 2022, which displaced millions and were exacerbated by climate change. However, despite these challenges, venture capital funding in Pakistan has significantly declined, with only $16 million raised in the first nine months of 2024—a 57% drop compared to the same period in 2023.
Sarmayacar is working to raise an additional $10 million, with plans to deploy the fund’s capital by the first quarter of 2025. This initiative is a part of global efforts to help developing nations like Pakistan adapt to climate change and address the effects of extreme weather.
The GCF has already allocated $282.7 million to Pakistan across various projects. Additionally, the International Monetary Fund (IMF) is in talks with Pakistan to provide further climate-related funding through its Resilience and Sustainability Trust (RST).
