The Centre for Strategic Perspectives at the Institute of Strategic Studies, Islamabad hosted the fourth working session of Islamabad Conclave 2025 on Regional Cooperation on Economy and Climate Change, bringing together policymakers, researchers and civil society to discuss practical pathways for South Asia.
Haroon Sharif opened the session with a forward-looking keynote urging a rethink of South Asia’s future amid global disorder, shrinking development finance and rising investment risks. He argued that political friction has held back the region’s economic potential and called for a brick-by-brick, results-driven approach to regional cooperation. Mr Sharif proposed a framework centred on digital cooperation, climate-focused partnerships and the inclusion of emerging economic actors such as China and Gulf states. He warned that bilateral water treaties are inadequate for rapidly changing Himalayan hydrology and pressed for trilateral water-management arrangements alongside a private sector–driven regional climate and development bank. He closed with an optimistic focus on youth empowerment and private sector leadership.
Dr Safdar Sohail highlighted the deep interlinkage between industrial policy and climate action, noting that Pakistan’s weak alignment between the two undermines competitiveness as international measures like the EU’s Carbon Border Adjustment Mechanism emerge as non-tariff barriers. He called for regional technology transfer, greener value chains and coordinated industrial transitions to enable deeper regional cooperation on economy and climate.
Dr Pema Gyamtsho emphasised the transboundary nature of climate impacts across the Hindu Kush Himalaya, describing nature as South Asia’s most important economic asset. He urged integrating natural capital into planning, creating shared data platforms and joint early-warning systems, and coordinating resilience investments to protect both mountain and downstream communities.
Dr Dilli Raj Khanal shared Nepal’s experience with hydropower exports, carbon markets and community forest management while pointing to a widening gap between national climate commitments and available financing. He stressed the need for regional pathways that prioritise clean energy transition, green growth and low-carbon industries to address financing shortfalls.
Aisha Khan framed climate change as the region’s foremost security threat, warning that melting glaciers, shifting monsoons and increasing water scarcity could heighten the risk of conflict if left unmanaged. She proposed a South Asian climate agreement and a regional climate finance mechanism that reframes cooperation around human wellbeing and ecological stability.
The interactive question-and-answer segment saw participants probe water governance, climate resilience and opportunities for deeper regional cooperation. The session concluded with Ambassador Khalid Mehmood, chairman of the ISSI Board of Governors, presenting commemorative mementos to the speakers, underscoring a shared commitment to practical steps toward regional cooperation on economy and climate change.
