ISLAMABAD, May 22 -- In a major step toward climate accountability, the Finance Division has introduced Form-III C to track and classify subsidies based on their environmental impact. The new form will be used in the upcoming 2025-26 federal budget as part of Pakistan's climate-focused fiscal reforms.

Previously, the government had started tagging budget allocations by climate relevance - including adaptation, mitigation, and transition - for civil and development sectors. Now, this tagging system has been expanded to include subsidies, a large and often opaque part of public spending.

Subsidies, which help reduce costs for consumers and producers, will now be categorized according to their contribution to climate goals. Principal Accou...