THE WORLD BANK ENVIRONMENT AND NATURAL RESOURCES GLOBAL PRACTICE SOUTH ASIA REGION FORESTS FOR GREEN PAKISTAN: FOREST POLICY NOTE JUNE 2018 THE WORLD BANK ENVIRONMENT AND NATURAL RESOURCES GLOBAL PRACTICE SOUTH ASIA REGION FORESTS FOR GREEN PAKISTAN: FOREST POLICY NOTE Standard Disclaimer: This volume is a product of the staff of the International Bank for Reconstruction and Development/ The World Bank. The findings, interpretations, and conclusions expressed in this paper do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Copyright Statement: The material in this publication is copyrighted. 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Photos Credit: Front Cover - top photo: Dave Primov/Shutterstock.com; bottom left: Mairee/Shutterstock.com; bottom right: Zahid Khan/Shutterstock.com; Inside – page 9: Mairee/Shutterstock.com; page 19: MJ/Shutterstock.com; Back Cover – left photo: Dave Primov/Shutterstock.com; center: Zahid Khan/Shutterstock.com; and right: Jiang Ru/World Bank CONTENTS Acronyms .......................................................................................................................................................01 Executive Summary .......................................................................................................................................02 1. Introduction to the Country ....................................................................................................................04 2. Status of Forest Resources in Pakistan.....................................................................................................06 3. Contribution of Forests to the National Economy ..................................................................................10 4. Policy and Institutional Context ..............................................................................................................14 5. Development Partner Engagement in the Forestry Sector .....................................................................18 6. Opportunities to Support Green Growth through Sustainable Forest Sector Development ......................................................................................................................20 6.1 Policy Interventions ..........................................................................................................................20 6.2 Technical and Institutional Capacity Building .................................................................................21 6.3 Investments .......................................................................................................................................21 7. Recommendation for World Bank Engagement .....................................................................................24 8. References ................................................................................................................................................26 9. Annex A: Comparison of Province-wise Forest Area Estimates through Various Studies......................28 10. Annex B: Classification of Forests Based on Legal Status, Tenure Type, and Ecology..........................30 11. Annex C: Investment in Pakistan's Forestry Sector.................................................................................33 12. Annex D: Brief Overview of Donor-funded Projects in the Forestry Sector ..........................................34 Forests for Green Pakistan ACRONYMS ADB Asian Development Bank AJK Azad Jammu and Kashmir BTTAP Billion Tree Tsunami Afforestation Program DFO Divisional Forest Officer FAO Food and Agriculture Organization FATA Federally Administered Tribal Areas FCPF Forest Carbon Partnership Facility FSMP Forestry Sector Master Plan GB Gilgit-Baltistan GDP Gross Domestic Product GHG Greenhouse Gas GPP Green Pakistan Program ICIMOD International Centre for Integrated Mountain Development IUCN International Union for Conservation of Nature KP Khyber Pakhtunkhwa MoCC Ministry of Climate Change MoE Ministry of Environment NDC Nationally Determined Contribution NGO Nongovernmental Organization NTFP Non-Timber Forest Product OIGF Office of Inspector General of Forests PES Payment for Environmental Services PFI Pakistan Forest Institute REDD+ Reducing Emissions from Deforestation and Forest Degradation, and Foster Conservation, Sustainable Management of Forests, and Enhancement of Forest Carbon Stocks UNDP United Nations Development Programme WAPDA Water and Power Development Authority WWF World Wildlife Fund All dollar amounts are U.S. dollars unless otherwise indicated. Forest Policy Note 01 EXECUTIVE SUMMARY The forest cover in Pakistan is low. The latest forest the country's population depends on firewood as a assessment from 2011 estimates 4.47 million ha of total major source of household energy and about 100,000 forest area in the country, or 5.1 percent of the total people are involved in the fuelwood trade, generating land area (Bukhari, Laeeq, and Ali 2012). Distribution about PKR 11.3 billion ($113 million) annually. In of forests varies by province and other administrative addition, more than 500,000 workers are employed by area; it is highest in Khyber Pakhtunkhwa (32.7 forest industries and about 80 percent of the people percent), followed by Sindh (14.8 percent), Punjab living in rural areas depend on non-timber forest (12.4 percent), Federally Administered Tribal Areas products to supplement their incomes. Ecologically, (11.9 percent), Balochistan (11.1 percent), Azad forests provide critical ecosystem services (e.g., water Jammu and Kashmir (9.6 percent), and Gilgit- regulation, sediment control, and biodiversity Baltistan (7 percent). conservation) that are fundamental to the sustainability and resilience of Pakistan's future Pakistan does not have a system for regularly and development. Socially, forests are closely linked to consistently assessing, monitoring, and sharing data on gender issues in rural Pakistan. forest cover, growing stock, and supply and demand of forest products. Limited data show that Pakistan's Pakistan's forests are in the domain of provincial forest resources have been decreasing and degrading governments. With the promulgation of the 18th over the last few decades due to unsustainable Amendment to the Constitution in 2010, large sets of management and exploitation of available forest responsibilities were transferred from the federal resources. Deforestation in natural forests is taking Ministry of Environment to the local level. Provincial place at the rate of 0.75 percent, or 27,000 ha per year forest departments, with their varying capacities, (FAO 2009). The limited forest resources have been strengths, and priorities, now have the key role in unable to meet the demand for forest products in the managing forest resources. country, which far exceeds the current level of sustainable domestic supplies. Pakistan's forest policies and legal frameworks are outdated, however, both at the national and provincial The forestry sector contributes to Pakistan's national levels. The Pakistan Forest Act 1927 is the principal economy by creating employment opportunities and piece of forestry legislation, and forest management generating taxes and revenues. However, such benefits departments continue to prioritize timber production. are yet to be studied thoroughly and evaluated In principle, production forests are managed quantitively. Qualitatively, the sector provides forest according to the working plans, which are developed products and related employment opportunities that under approved working plan codes from the 1930s; in are key to rural livelihoods and economic develop- practice, not all production forests have working plans. ment. For example, according to the Food and In addition, no management plans are prepared for Agriculture Organization (FAO 2009), 68 percent of non-production forests. 02 Forests for Green Pakistan The federal Ministry of Climate Change promulgated • Policy Interventions the National Forest Policy of 2015, which is a positive development. The policy aims at serving as an o Support to implement the National Forest umbrella forest policy to support provincial forest Policy 2015, to devise and implement policies. Its adoption at the provincial level, however, is participatory policies in the provinces yet to happen. o Strengthen the coordination mechanism Historically, the forestry sector has been a low among the provincial and federal institutions development priority and has received limited for effective management and coordination investments. Budget allocations for this important o Create a conducive policy environment for sector is normally less than one percent of most private sector participation in the forestry provincial budgets. The launching of the ambitious sector Billion Tree Tsunami Afforestation Program ($150 million) in Khyber Pakhtunkhwa and the Green • Technical and Institutional Capacity Building Pakistan Program ($36 million), however, shows the o Continue supporting the Forest Management government's recognition of the importance of the Information System forestry sector. This is also hopefully the beginning of needed policy shifts for the sector. o Support forestry research, education, knowledge sharing, and capacity building The World Bank supported Pakistan's forestry sector until 2000, and then remained disengaged until 2015. • Investments Few other donors—primarily the United Nations Development Programme, the Food and Agriculture o Increase forest cover for socioeconomic and Organization, and international non governmental environmental benefits through afforestation, organizations such as World Wildlife Fund, agroforestry, and plantations International Union for Conservation of Nature, and o Promote forest-based entrepreneurship and International Centre for Integrated Mountain livelihood support Development—maintained support on a small scale. o Improve forest management practices and Since 2015, the World Bank has been supporting sustainable management of existing forests Pakistan with $7.4 million to help the country prepare for reducing emissions from deforestation and forest The significant role of the forestry sector in Pakistan's degradation through technical studies, consultations, national economy, and in supporting rural livelihoods, and capacity-building activities. poverty reduction, sustainable development, climate change mitigation and adaptation, and resilience to Long-term forest investments are required to harness vulnerabilities related to climate change and natural the huge potential of forest contributions to resilient disasters, war rants support from the donor ecosystems, rural livelihoods, the national economy, community, including the World Bank. The potential and the global environment. In recent years the forest investment can build on the enabling government has augmented its attention to forests, as environment that the ongoing REDD+ Readiness demonstrated by the nationally determined Project is creating. contribution, the Green Pakistan Program, and the Billion Tree Tsunami Afforestation Program. Future Given the institutional and regulatory complexity of support is needed to enhance and scale up these new forest management issues in Pakistan, initial and important initiatives in order to strengthen engagements should focus on relatively simpler tasks landscape management, reduce poverty and improve (such as increasing the forest cover for multiple livelihoods, and foster private sector development. benefits) and gradually move to more challenging tasks (such as sustainable management of existing forests The following three broad areas have been identified and addressing such issues as land tenure, human- for future support to address current challenges in the wildlife conflict, and conservation management). sector: Forest Policy Note 03 CHAPTER 01 INTRODUCTION TO THE COUNTRY Pakistan is the 33rd largest country in the world, (GB), and Azad Jammu & Kashmir (AJK). The 18th spanning 79.6 million ha (Government of Pakistan Constitutional Amendment in 2010 enhanced 2016). It is also the sixth most populous country with provincial autonomy; as a result, 43 departments in 18 207 million people, of which 61 percent reside in rural ministries were devolved to the provinces. areas and 39 percent in urban areas. It is a middle- income country with a per capita gross domestic Pakistan is one of the countries that is most vulnerable product of $1,468 in 2016. Pakistan is mainly a dry to climate change. The Global Climate Risk Index from land, with 80 percent of its land in arid and semiarid 1996 to 2015 prepared by German watch found zones. It has a continental type of climate characterized Pakistan the seventh most affected country in the by extreme variations of temperature seasonally and world. The National Disaster Management Authority daily. reports that extreme climate events (1994–2013) caused $4 billion per year in economic losses Pakistan is a federation that comprises four provinces (Government of Pakistan 2016). The last five floods and three administrative areas. The provinces are (2010–2014) resulted in monetary losses of over $18 Punjab, Sindh, Khyber Pakhtunkhwa (KP), and billion, with 38.12 million people affected, 3.45 million Balochistan, and administrative areas are the Federally houses damaged, and 10.63 million acres of crops Administered Tribal Areas (FATA), Gilgit-Baltistan destroyed (Government of Pakistan 2016). 04 Forests for Green Pakistan CHAPTER 02 STATUS OF FOREST RESOURCES IN PAKISTAN The forest cover in Pakistan is extremely low as a percentage of According to FAO (2010), Pakistan had 1.68 million ha total land area. In absolute terms, however, Pakistan has more of forests in 2010; 1.9 million ha in 2005; 2.1 million ha forest area than Afghanistan, Bangladesh, or Maldives. in 2000, and 2.5 million ha in 1990. Including other Pakistan does not have a system of regularly and consistently wooden land, the forest area in 2010 became 3.1 assessing, monitoring, and sharing data on forest cover, million ha, still much lower than the figures reported growing stock, and supply and demand for forest products. by national sources. According to Global Forest Watch Limited data show that Pakistan's forest resources have been (Hansen et al. 2013), Pakistan had 0.979 million ha of decreasing and degrading over the last few decades due to tree cover in 2000. Between 2000– 2016, about 9,267 unsustainable management and use of available forest ha was lost (618 ha per year). resources. The latest forest assessment, from 2011, estimates 4.47 million ha of total forest area in the country (5.1 Box 1: Comparison of Forest Areas in South Asia percent of the total land area) (Bukhari, Laeeq, and Ali Country Forest Area % Forests Contribution of 2012). Distribution of forests varies by province and (1,000 ha) Sector to GDP other administrative area. In absolute terms (that is, Afghanistan 1,350 2 — the percentage of forest area to total forests in the a Pakistan 1,687 2 0.43% (2012–13) country), KP is the richest (32.7 percent), followed by India 68,434 21 0.67%(2007–08) Sindh (14.8 percent) and Punjab (12.4 percent) (see Table 1 for details). In relative terms (that is, the Nepal 3,636 25 9.45% (2008) percentage of forest area to total area of the respective Bhutan 3,249 69 3.13% (2012) province or administrative area), however, the top Bangladesh 1,442 10 1.73% (2012) three provinces or other administrative areas are AJK Sri Lanka 1,860 27 0.83% (2012) (35.1 percent), KP (19.6 percent), and FATA (19.2 Maldives 1 3 — percent). See Annex A for a comparison of province by province forest area estimates from various studies. Source: Global Forest Resource Assessment, FAO 2010. There is discrepancy between the forest cover Note: a. The national source indicates 4.47 million ha information in the national and international data. (5.1%) forest area in Pakistan. 1 https://data.worldbank.org/country/pakistan. 2 Other wooden land: land not classified as “forest,” spanning more than 0.5 ha; with trees higher than 5 m and a canopy cover of 5–10 percent or trees able to reach these thresholds in situ; or with a combined cover of shrubs, bushes, and trees above 10 percent. It does not include land that is predominantly under agricultural or urban land use. 06 Forests for Green Pakistan There are two main types of forests—natural forests quantitatively because of increasing pressure from a (conifers, scrub, riverine, and mangrove forests) and rising population and associated needs.   shows how plantations (farmland plantations, roadside forest wealth, in proportion to natural capital and total plantations and canal-side plantations). According to wealth in Pakistan, is declining over time. Significant Bukhari, Laeeq, and Ali (2012), the majority, about areas of forest lands have been transferred to non- 4.28 million ha (4.8 percent of the total land area), is forestry and commercial purposes, including natural forest. Irrigated plantations have been raised agriculture, infrastructure, defense, and tourism (FAO mainly in Punjab and Sindh Provinces. The plantations 2009). The coniferous forests are the most fragile and make up 4.4 percent of total forest area and 0.3 percent are rapidly declining because of their high-value of the total area of the country. From a tenure point of timber. Because of overexploitation, deforestation in view, there are two main categories of forests: state natural forests is taking place at the rate of 0.75 owned and private (see Annex B for details on legal percent, or 27,000 ha per year (FAO 2009). In the and ecological classification of forests). Among these, Readiness Preparation Proposal, the Government of 2.4 percent of forests are managed under the protected Pakistan identified three categories of direct drivers area system (FAO 2014), which covers 11 percent of the which, in order of decreasing severity, are demand and area of Pakistan and comprises game reserves, wildlife consumption of forest products, land use change, and sanctuaries, and national parks (Government of natural or manmade hazards (Government of Pakistan Pakistan 2015). 2013). Under the World Bank supported REDD+ Readiness, the government is assessing causes and During the last two decades, Pakistan lost 25 percent of drivers of deforestation and forest degradation in each its natural forests (FAO 2009). Forest resources province and other administrative area and REDD+ continue to deteriorate both qualitatively and strategies are being developed. Table 1 : Distribution of Forests in Various Provinces and Other Administrative Areas Provinces Total Area Natural Plantations Total Forests Forests Natural Plantatio and other (ha) Forests (ha) Forests to to Forests to ns to Administrative (ha) (ha) Total Total Total Total Areas Area % Forests Area % Forests % % Punjab 20,540,449 464,561 89,309 553,862 2.7 12.4 2.3 16.1 Sindh 14,263,918 589,398 71,186 660,584 4.6 14.8 4.1 10.8 KP 7,448,636 1,459,872 4,190 1,464,062 19.7 32.7 19.6 0.3 Balochistan 35,194,796 498,906 0 498,906 1.4 11.1 1.4 0.0 FATA 2,733,268 524,040 10,539 534,579 19.6 11.9 19.2 2.0 GB 6,981,387 313,812 0 313,812 4.5 7.0 4.5 0.0 AJK 1,178,038 413,025 18,747 431,772 36.7 9.6 35.1 4.3 Total ** 88,430,442 4,281,322 196,598 4,477,920 5.1 100.0 4.8 4.4 Source: Bukhari, Laeeq, and Ali (2012). **In the total, Bukhari, Laeeq, and Ali (2012) have also included Islamabad Capital Territory's area (89,950 ha), Natural Forests (17,708 ha), plantations (2,635 ha), and Total Forests (20,343). Forest Policy Note 07 Table 2 : Changing Wealth of Pakistan in US$, millions (1995–2014) Years 1995 2000 2005 2010 2014 Total wealth 1,838,762 2,585,815 2,987,716 3,462,695 4,104,589 Natural capital 712,444 804,082 796,451 938,344 1,106,989 Total forest (timber + non-timber) 2,648 2,072 1,996 2,158 2,237 % of forest to total wealth 0.14 0.08 0.07 0.06 0.05 % of forest to natural capital 0.37 0.26 0.25 0.23 0.20 Source: Glenn-Marie, Wodon, and Carey (2018). The limited and decreasing forest resources have been farmland—5.38 million m3 of timber and 3.45 million insufficient to meet the demand for forest products in m3 of fuelwood (Shah and Mohammad 2016). Farm the country, which far exceeds the current level of forestry is an important alternative to meet the sustainable domestic supplies. The available data show growing demands for fuelwood and timber. This helps that in 2002–2003, the country's total wood demand decrease pressure on natural forests and thereby was 43.76 million m3, including 12.23 million m3 for contributes to reducing deforestation and forest timber and 31.52 million m3 for fuelwood, whereas the degradation of natural forests. sustainable supply of timber and fuelwood combined was only 14.40 million m3. The gap of 29.36 million m3 The major forest-based industries include paper, in supply and demand was fulfilled mainly by furniture, construction material, matches, sports overexploiting forest resources and partly through goods, packing cases, and wooden articles. The full importing paper products and timber (FAO 2009) and potential of small and medium forest-based enterprises an increase in planted trees on farmlands. In 2004, has not been realized due to the unavailability of there were 331 million trees (6 percent annual increase sufficient and quality raw materials (FAO 2009). There over 1992) in the farmlands, with standing volume of are thus far no exclusive industrial plantations on 70 million m3 (3.8 percent annual increase over 1992) either public or private lands, and private sector (FAO 2009). The State of Forestry in Pakistan reports engagement in the overall forestry production sector is an annual production of 8.83 million m3 of wood from negligible. 3 Forest loss of 27,000 ha per year is also reported in the NDC submitted to the United Nations Framework Convention on Climate Change (UNFCCC) by the Government of Pakistan (2016). 4 REDD+ refers to reducing emissions from deforestation and forest degradation and fostering conservation, sustainable management of forests, and enhancement of forest carbon stocks. 5 The same source mentions very high levels of supply in 2012–2013 from farm forests: 39.87 million woods (5.38 million m3 timber and 34.49 million m3 firewood) (Shah and Mohammad 2016). 08 Forests for Green Pakistan CHAPTER 03 CONTRIBUTION OF FORESTS TO THE NATIONAL ECONOMY The contribution of forests to the national economy and to the billion ($113 million) annually (FAO 2009). livelihoods of forest-dependent communities is significant; however, robust, up-to-date data and adequate valuation of Employment. Besides official employment in forest both the direct and indirect contributions of forests are lacking. departments, a large number of laborers are engaged This lack of evidence might have prevented the government in either year-round or seasonal forest management from considering forestry as a priority in the past. activities. Examples include raising and maintaining nurseries, preparing sites for planting, protecting The forestry sector contributes to Pakistan's national planted stocks, weeding, cleaning, thinning, economy by creating employment opportunities and firefighting, and harvesting. In addition, a large generating taxes and revenues. However, such benefits number of people draw their livelihoods from farm are yet to be carefully studied and evaluated forestry, processing of forest-based products, and eco- quantitively. Qualitatively, the sector provides a suite of tourism. In addition to the 100,000 people involved in forest products and related employment opportunities the fuelwood trade, more than 500,000 workers are that are key to rural livelihoods and economic employed by forest-products industries such as development. Ecologically, forests provide critical furniture, village carpentry, matches, particle board, ecosystem services such as water regulation, sediment plywood, fiberboard, boats, crates, boxes, paper, pulp, control, and biodiversity conservation that are and chip board (FAO 2009). fundamental to the sustainability and resilience of Pakistan's future development. Socially, forests are Non-Timber Forest Products. Pakistan's forests are closely linked to gender issues in rural Pakistan. home to many non-timber forest products (NTFPs). Timber and Fuelwood. Timber has a broad range of uses in Pakistan as construction material for buildings, Box 2: Some Latest but Outdated Statistics on bridges, and railways. Many household articles (such as Forest-based Industry furniture, sports goods, and musical instruments) are The industrial sector consumed 12.238 million made of wood. Other uses include railway sleepers; m3 of roundwood in 2003. Forest-based exports fencing poles; electric poles; gates; and body works of rose from PKR 3.5 billion ($35 million) in buses, lorries, trains, and boats. Lack of sufficient wood 1992–1993 to PKR 21.314 billion ($213 million) to meet the demand would mean additional costs for in 2002–2003 with an average annual growth of replacing domestic supplies with more expensive and 1.78 percent. The imports increased from PKR less accessible imported materials. In addition, about 4.25 billion (US$42.5 million) in 1992–1993 to 68 percent of the country's population, mostly those PKR 13.716 billion (US$137 million) in living in rural areas, depend on firewood as a major 2002–2003 with an average annual increase of source of household energy (FAO 2009). About 0.95 percent. 100,000 people are involved in the fuelwood trade in Pakistan, and this business generates about PKR 11.3 10 Forests for Green Pakistan About 80 percent of the people living in rural areas are World Data Atlas, the travel and tourism sector dependent on NTFPs to supplement their incomes contributed $19.4 billion to Pakistan's gross domestic (FAO 2009). Important NTFPs include medicinal, product (GDP) in 2016. In 2013, the tourism industry aromatic, and culinary herbs; forage and fodder; resin; contributed 3.1 percent to the GDP and employed 6.4 gums; mazri leaves; honey; silk; mushrooms; wild percent of the workforce (FAO 2017). In Pakistan, 21 fruits; chilgoza nuts; pistachio nuts; wild almonds; and percent of the tourists come for nature-based tourism, wild pomegranate. These NTFPs are the foundation of including visits to scenic landscapes and wildlife certain industries and professions. For example, viewing (FAO 2017). It is expected that earnings from Pakistan has about 30 large herbal medicinal nature-based tourism will continue to increase in the manufacturing companies and hundreds of other future. small manufacturers (FAO 2017). The annual sale of herbal medicines is estimated to be around PKR 6 Agriculture. Pakistan is primarily an agrarian country, billion ($60 million) (UNDP 2010). The annual and its agriculture sector is dependent on forests for revenue of some large herbal manufacturers is fodder, mulch, pollination, sustained water supplies, comparable to multinational companies in Pakistan. and protection from erosion. The forests provide Another example is traditional healers (around fodder and grazing lands to about 130 million livestock 100,000 in number) using medicinal herbs to serve (FAO 2009). The Forestry Sector Master Plan (FSMP) about 60 percent of the population, especially those reports that livestock get around 70 percent of their living in rural areas (UNDP 2010). Biodiversity. Pakistan's diverse forest landscapes Box 4: Role of Forests in Resilience of provide habitats for 174 species of mammals, 668 Infrastructure: The case of Mangla Dam species of birds, over 177 species of reptiles, 198 species of freshwater fish, over 5,000 species of insects, and With an area of 125 square miles, Mangla dam about 5,721 species of plants (FAO 2009). Of those is the largest dam in Pakistan. At the time of its plants, about 400 species, or 7.1 percent, are endemic design in 1960, sediment yield from (FAO 2009). Some of the endangered mammals found surrounding watersheds to the dam was in Pakistan's forests are markhor, urial, goitred estimated to be 42,000 acre-feet per square gazelles, marco polo sheep, snow leopards, and brown mile per year, and the life of the dam was and Balochistan black bears. Chilgoza, juniper, expected to be 100–110 years. mangrove, and riverine forests are among the To control sediment inflow into Mangla endangered ecosystems in Pakistan (FAO 2017). reservoir and thereby maintain the water Tourism. Pakistan's forests are critical for tourism. The storage capacity of the reservoir, the Water Tourism Department reports that on average one and Power Development Authority (WAPDA) million foreign tourists have visited Pakistan since of Pakistan has been implementing a Mangla 2009. The number of domestic tourists visiting is much Watershed Management Project in a larger (38.3 million in 2016) (FAO 2009). According to catchment area of 3,433 square miles since the beginning of the project. Under this project, WA P D A h a s u n d e r t a ke n a n u m b e r o f bioengineering measures, including Box 3: Value of NTFP: The Chilgoza Nut afforestation in 172,896 acres and raising of Example over 135 million plants. As a result, the A single standing Chilgoza pine tree is average sediment inflow reported to the dam estimated to produce nuts worth PKR 4,500 from 1967 to 2014 has been only 27,747 acre- per year, which makes it an important income feet per square mile per year. Due to the source for many poor households. Pakistan reduced sediment flow, the dam is now exported 1,461 tons of nuts generating $13.56 expected to last up to 212 years. million in 2012 and 1,738 tons generating Source: A powerpoint presented by WAPDA around $20 million in 2013 (FAO 2017). Officials in Islamabad in November 2017. Forest Policy Note 11 required feed from forests (FAO 2009). FAO (2017) Climate Mitigation. Another important ecological estimates demand for 260 million tons of dry matter function of forests is carbon sequestration, which forage with a sustainable supply of only 27.3 million contributes to climate change mitigation. Total carbon tons. This unmet demand has created heavy pressure stock in Pakistan's forests, including the rate of on forests, causing both forest degradation and absorption and emission, is being assessed under the environmental deterioration (FAO 2017). World Bank supported REDD+ Readiness Project, but the information is available for Khyber Pakhtunkhwa Resilience of Landscapes and Infrastructures. Forests and Gilgit-Baltistan. In the KP forests, the total carbon contribute to slope stabilization, water regulation, and stock and annual sequestration rate are 153.3 million erosion control. These are important ecological tons of CO2 and 6 million tons of CO2, respectively (Ali functions for resilience of landscapes and 2017). In the GB forests, the total carbon stock and infrastructures (such as roads, railways, irrigation annual sequestration rate are 16.95 million tons of CO2 canals, and dams). The loss of vegetation in watersheds and 1.3 million tons of CO2, respectively (Ali, Hussain, will increase the risk of landslides and flash floods, and Ismail 2017). One of the high-priority mitigation causing damages to infrastructure, settlements, and options identified in Pakistan's nationally determined loss of human lives and livestock. For example, large- contribution is the implementation of agroforestry scale deforestation and forest degradation in the practices through the planting of multipurpose and mountains was attributed to the catastrophic floods of fast-growing tree species. Investment in forestry is 1992 in northern Pakistan (FAO 2009). Because expected not only to help avoid emissions from this Pakistan is highly vulnerable to climate-change- sector but also to compensate for emissions occurring induced hazards, more frequent, severe, and costly in other sectors. This proposal is consistent with global damages to infrastructure are very likely to occur. practices as the forestry sector has been identified as a Investment in forest restoration for a more-resilient landscape is a cost-efficient and effective approach to mitigate such risks. Box 5: Pakistan's NDC In the south of Pakistan, the mangroves in the Indus Delta provide important but yet-to-be-quantified Total greenhouse gas (GHG) emissions from benefits: protection of the coast from wind and sea Pakistan in 2015 was estimated to be 405 currents and the coastal villages from tides, cyclones, million tons CO 2 -equivalent, which is and erosion. The mangroves also serve as breeding projected to be 1,603 million tons CO 2 - grounds for prawns and fish. It is estimated that 29 equivalent in 2030. The GHG inventory million tons of shrimp and 2.4 million tons of fish are quantifies the emissions from five key sectors: harvested from mangrove forests in the Indus Delta energy, agriculture, industrial processes, land (FAO 2009). use and forestry, and waste. The share of land use change and forestry in 2015 was 10.39 Water. Pakistan is already one of the most water- million tons of CO2 (2.6 percent) and is stressed countries in the world, and the situation is projected to increase by about 180 percent. getting worse due to climate change. According to the Through the NDC, Pakistan commits to Pakistan Council of Research in Water Resources, reduce up to 20 percent of its 2030 projected Pakistan hit the “water stress line” in 1990, the “water GHG emissions (Government of Pakistan scarcity line” in 2005, and will reach the “absolute 2016). Forestry is one of the high-priority scarcity” level by 2025. As hydrological functions of sectors both for mitigation and adaptation, forests help groundwater to recharge and regulate especially planting of multipurpose and fast- water supply, restoration and improvement of forest growing tree species. landscapes may improve Pakistan's capacity to mitigate the expected water crisis. 6 https://knoema.com/atlas/Pakistan/topics/Tourism/Travel-and-Tourism-Total-Contribution-to-GDP/Contribution-of-travel-and- tourism-to-GDP. 12 Forests for Green Pakistan cost-effective solution to global climate change the Gender Inequality Index, Pakistan ranked 147 out mitigation. of 188 countries in 2015, which is the second lowest in South Asia after Afghanistan (UNDP 2016). As Gender. Improving forest governance will create Pakistan has committed to “achieve gender equality opportunities to empower women and poor and empower all women and girls” as one of the goals communities. Women are more dependent than men of the United Nations' 2030 Agenda for Sustainable on collecting food, fuel, and fodder; grazing animals; Development, Pakistan can take actions to reverse this and fetching water. However, their access to decision situation and address gender inequality, particularly in making on forest management and benefit sharing is rural areas. limited. On both the Gender Development Index and Forest Policy Note 13 CHAPTER 04 POLICY AND INSTITUTIONAL CONTEXT Pakistan's forest policies and legal frameworks need to be quantitative figures of annual growth, supply, and updated at both the national and provincial levels. As forests demand, and worked out the gap between supply and are on the provincial agenda in Pakistan, the federal agency demand. Although the FSMP was implemented with has a limited role in coordination. Provincial forest donor support, that support could not be continued departments, meanwhile, have varying capacities, strengths, after 1998 due to discontinuation of external and priorities in managing forest resources. With historically investments caused by changes in the political low investments in the sector, forest management continues to environment (FAO 2017). prioritize timber production. The more recent promulgation of the National Forest Policy 2015 and the launching of the The latest positive development is the promulgation of ambitious Billion Tree Tsunami and Green Pakistan Program the National Forest Policy 2015 by the federal Ministry show the beginning of policy shifts that are needed for of Climate Change (MoCC). The policy aims to serve as the sector. an umbrella forest policy to support provincial forest policies. The policy includes three approaches: (a) Policy. The Pakistan Forest Act 1927 is the principal conserving the e xisting forests by curbing piece of forestry legislation. In Gilgit-Baltistan, Punjab, deforestation and promoting conservation; (b) and Sindh, forests are managed under the Forest Act increasing tree cover within and outside forests 1927; in Khyber Pakhtunkhwa under the KP Forest through mass afforestation involving all sections of Ordinance 2002; in Balochistan under the Balochistan society; and (c) meeting International obligations and Forest Regulation 1890 (amended in 1974) as well as opportunities. The policy also emphasizes applying the Forest Act 1927; and in Azad Jammu and Kashmir Payment for Environmental Services (PES) and an under the Jammu and Kashmir Forest Regulation No. integrated approach of forests, wildlife, and 2 of 1930. There are no provincial forest policies in biodiversity management. Box 6 provides details on Sindh, Balochistan, and FATA; draft forest policies the goal, objectives, and some key strategic e xist in AJK and GB. KP and Punjab have interventions outlined in the National Forest Policy promulgated provincial forest policies in 1999 (Punjab 2015. However, because forestry is a provincial revised its in 2016). responsibility, adoption of this policy still needs to happen at the provincial level. Pakistan does not have a long-term plan or strategy for its forestry sector. The Office of Inspector General of Institutions. Before the promulgation of the 18th Forests (OIGF) developed the Forestry Sector Master Amendment to the Constitution in 2010, the federal Plan (FSMP) in 1992 with support from the Asian Ministry of Environment (MoE) had responsibility for Development Bank (ADB) and the United Nations policy making, inter-provincial coordination, Development Programme (UNDP). Under the FSMP, planning, monitoring, research, and project Pakistan for the first time assessed its forest areas development for the overall management of forests in through satellite images and conducted a survey of the country. Subnational governments were mainly farm forest resources. The FSMP presented 14 Forests for Green Pakistan functioning as the implementers of the national national level, the OIGF, under the newly created policies, primarily by way of devising projects and MoCC, is responsible for inter-provincial coordination programs within their respective development plans on matters related to forests, the import and export of and jurisdictions. With the 18th Amendment coming wood across borders, and the inter-provincial trade of into effect and the abolishment of concurrent lists, wood and non-wood products. large sets of responsibilities, including forestry, were devolved fully to provincial governments. At the Box 6: National Forest Policy 2015: Goal, • Promoting standardized and harmonized Objectives, and Key Strategic Interventions scientific forest planning, research, and education, including for community-based Goal: Expansion, protection, and sustainable use management of national forests, protected areas, natural habitats, and watersheds for restoring ecological functions and improving livelihoods and human health in line with national priorities and Selected Key Strategic Interventions international agreements. • Integrate forestry with economic sector Objectives: development policies and programs at the planning, programming, and • Promoting ecological, social, and, implementation levels cultural unctions of forests through sustainable management and use of • Undertake a long-term mass afforestation forest products, including wood and program by the Federal Government in non-wood forest products collaboration with all provinces and other administrative areas through concerned • Implementing a national-level mass national organizations afforestation program to expand and maintain optimum forest cover • Establish a transboundary ecological corridor with activities of protection, • Maximizing forest areas by investing in restoration, and regeneration of native available communal lands/shamlat and species along both sides of the envisioned Guzara forests and urban forestry Pakistan-China economic corridor (which may be extended to Afghanistan and • Facilitating and harmonizing inter- Central Asia) provincial movement, trade, and commerce of wood and non-wood forest • Regulate inter-provincial timber products through the Federal Forestry movement, commerce, and trade by Board establishing a Federal Forestry Board • Interlinking natural forests, protected • Promote an integrated approach of forest, areas, wetlands, and wildlife habitats to wildlife, and biodiversity management reduce fragmentation • Adopt scientific forest management • Enhancing the role and contribution of planning, implementation, and policy or forests in reducing carbon emissions and legal reform enhancing forest carbon pools • Strengthen national institutions for • Fa c i l i t a t i n g i m p l e m e n t a t i o n o f research, education, training, and international conventions and agreem- monitoring e n t s r e l a t e d t o f o r e s t r y, w e t l a n d s , biodiversity, and climate change Forest Policy Note 15 At the provincial level, provincial governments modalities, and associated financing plans. formulate their own strategies and action plans to achieve the goals and objectives of their own forest In terms of forestry production, there are two policies. The Provincial Secretary of Forests has the semiautonomous harvesting corporations: KP Forest overall responsibility for managing forest resources. Development Corporation in KP and Azad Kashmir Each provincial forest department has its forestry Logging and Sawmilling Corporation in AJK. In planning and monitoring unit with a mandate to carry Punjab, the Murree Kahuta Development Authority out forest inventories, prepare forest working/ (MKDA) is responsible for managing forests in management plans, and monitor the implementation Murree, while the South Punjab Forest Company has of these plans as well as other projects. In other words, been established to foster public-private partnerships forest departments have mandates for planning, for investment in riverine forests. These arrangements implementing, and monitoring functions. There has have been made for timber production. been no assessment, however, of how provincial forest Management. In principle, production forests are departments have performed these functions. In managed according to the working plans, which are addition, questions such as whether the same developed under approved working plan codes from institution should retain all these functions or share the 1930s. No management plans are prepared for with other agencies (at least for implementation and non-production forests. According to Shah and monitoring and evaluation) for efficiency and Mohammad (2016), all forests in Balochistan and effectiveness are yet to be examined. federally administered tribal areas (FATA) are Within a province, the forest department is divided managed without management plans, as are 72 into Regions, Circles, Divisions, Ranges, Blocks, and percent of forests in GB, 57.5 percent of forests in KP, Beats, headed, respectively, by the Chief Conservator and 61.5 percent of forests in Punjab. The majority of of Forests, Conservator of Forests, Divisional Forest the working plans in Sindh, AJK, KP, and Punjab have Officer (DFO), Range Officer, Forester, and Forest also become outdated (FAO 2017). Guard. The number of units depends on the size and Before preparation of a new working plan or revision complexity of the province. For example, Punjab and of an existing one, a preliminary working plan report is KP have three regions, Baluchistan has two, and Sindh developed by the respective Chief Conservator of has one. Forests or Conservator of Forests, as the case may be. At the federal level, there are no forestry-related The working plan is then developed, based on the research institutions. At the provincial level, there are preliminary working plan report, by a working plan two research institutions: the Pakistan Forest Institute officer of the rank of divisional forestry officer (DFO). (PFI) at Peshawar and the Punjab Forest Research The working plans are normally developed for a Institute (PFRI) at Gatwala. PFI was a national institute period of 10 years. The working plan officer, after that was transferred to KP after the devolution, undertaking forest inventories, assesses the total although it still serves the entire country on forestry number of trees, stock, and annual increment along issues. In addition, Pakistan has seven universities that with other relevant data, based on which the officer offer bachelor- and master-level education in forestry, prescribes the annual volume to be harvested on a range management, wildlife, and forestry extension. sustainable basis along with other management There are six forest schools, managed by the respective prescriptions essential for sustainable forest provincial forestry departments, where the forest management. The working plan is then approved by guards are trained. There is a general understanding the provincial government through its Secretary of that these agencies are insufficient to address the Forests. In Punjab, Sindh, and KP, there are challenges in the forestry sector (FAO 2017), but independent forestry planning circles; elsewhere, comprehensive analyses are needed to identify DFOs are posted to develop the management plans as capacity gaps of existing institutions, what new and when required. institutions are needed, their required operational 16 Forests for Green Pakistan Financing. Historically, the forestry sector has received low investment and low priority. Budget allocation for Box 7: Billion Tree Tsunami and Green this important sector is normally less than one percent Pakistan Programs of the budget of the respective province/region. The investment is made through the recurrent budget, the Billion Tree Tsunami: Launched in 2014 by development budget, and endowments. See Annex C the Government of Khyber Pakhtunkhwa as a for more detailed information about investment in the part of the “Green Growth Initiative” to meet forestry sector. the Bonn Challenge, the Billion Tree Tsunami Afforestation Program (BTTAP) planted In 2016, a total of PKR 11,354 million ($113 million) 1,000,000,000 seedlings in less than three was invested for forestry development in the country. years. According to the International Union Of this, 60 percent was under the recurrent budget and for Conservation of Nature, 350,000 ha of 40 percent was under the development budget (FAO forest and degraded lands are being restored 2017). under this initiative, surpassing KP's The two most recent investments—the BTTAP ($150 commitment to the Bonn Challenge of million) in KP and the GPP ($36 million)—show the restoring 348,000 ha. According to the World government's recognition in recent years of the Wildlife Fund, which carried out independent environmental importance of the forestry sector (see monitoring of the initiative in 2015, the Box 7). average survival rates were 86 percent in block plantations, 79 percent in roads and canal-side plantations, 72 percent in saline and waterlogged plantations, and 65 percent in farm forestry. Green Pakistan Program: Learning from the successful implementation of this project, the Federal Government has launched the largest national-level afforestation program—the Green Pakistan Program (GPP)—in 2016. The GPP, coordinated by the MoCC at the federal level and implemented by the provincial forest departments and federating entities, aims at planting 100 million trees over five years (2016–2021) to make the country greener. 7 Inherited from Indian Forest Act, 1927, that was under implementation at the time of independence. It was adopted by the National Assembly of Pakistan in 1947 and named Pakistan Forest Act 1927. 8 These universities are (1) Benazir Bhutto University, Sheringal, KP; (2) Haripur University, Haripur, KP; (3) Allama Iqbal Open University, Islamabad; (4) Arid Agriculture University, Rawalpindi, Punjab; (5) Agriculture University, Faisalabad, Punjab; (6) Bahaudin Zaqaria University, Multan, Punjab; and (7) Sindh Agriculture University, Tandojam, Sindh. Forest Policy Note 17 CHAPTER 05 DEVELOPMENT PARTNER ENGAGEMENT IN THE FORESTRY SECTOR The World Bank supported Pakistan's forestry sector until Projects supported by donors have so far had mixed 2000 and then disengaged until 2015. Few other results, with some successes and challenges from which donors—mainly the UN Development Programme, the Food lessons can be drawn for future engagement. A and Agriculture Organization, and international summary of donor-supported important projects is nongovernmental organizations (NGOs) such as World shown in Annex D, and here are some key lessons Wildlife Fund (WWF), International Union for learned: Conservation of Nature (IUCN), and International Centre for Integrated Mountain Development • Beneficiaries, communities, community-based (ICIMOD)—maintained support on a small scale. organizations, and NGOs should be engaged Multilateral donors (e.g., Asian Development Bank) and from early in the project design stage and the bilateral donors (Australia, Canada, Germany, Norway, the engagements should be maintained throughout United Kingdom, and the United States) have a presence in project implementation. the country but do not have current programs in the forestry • Both the technical and financial capacity of sector. implementing agencies should be carefully The World Bank, with funding from the Forest Carbon reviewed, and measures to address gaps should Partnership Facility (FCPF), signed a REDD+ be put in place. Readiness Preparation Grant Agreement of $3.4 • The need for frequent supervision should not be million in 2015 with the Government of Pakistan to underestimated. help the country get ready for REDD+ through technical studies, consultations, and capacity-building • Local communities are interested and capable of activities. The REDD+ Preparation Project (P152465) contributing to forest management if training, intends to help Pakistan (a) assess drivers of inputs, and opportunities are provided. deforestation and forest degradation; (b) develop a • Participatory processes are initially slow and National REDD+ strategy and its implementation expensive; in the long run, however, they pay off framework; (c) assess the social and environmental through reduced costs of forest management, impacts of REDD+; (d) establish forest reference improved governance, and social change. emission levels and monitoring systems for REDD+; and (e) improve technical capacity building and raise • Moving away from traditional timber-based stakeholder awareness. forest management requires a change in attitude and behaviour on the part of both forest In January 2018, the FCPF approved Pakistan's institutions and technicians. request for additional funding of $4.014 million to support Pakistan in expanding its REDD+ readiness • Change happens gradually, which requires both activities to the provincial level. The additional sufficient patience and sustained investment. financing is expected to be completed by mid-2020. 18 Forests for Green Pakistan CHAPTER 06 OPPORTUNITIES TO SUPPORT GREEN GROWTH THROUGH SUSTAINABLE FOREST SECTOR DEVELOPMENT Long-term forest investments are required to harness the huge sharing with forest-dependent communities, potential of forest contributions to resilient ecosystems, the biodiversity conservation, payment for ecosystem rural livelihood, the national economy, and the global services, climate change adaptation, and buffer zone environment. In recent years, the government has augmented management around protected areas. The provinces its attention on forests, as demonstrated by the nationally will need support to revise the policies and effectively determined contribution (where forests are prominent for both implement them. mitigation and adaptation), the GPP at the national level, and the impressive provincial initiative BTTAP in KP . The II. Strengthen the Coordination Mechanism among case for future support is to enhance and scale up these new the Provincial and Federal Institutions for Effective important initiatives in terms of strengthening landscape Management and Coordination management, achieving poverty reduction and livelihood As noted earlier, there is limited coordination between improvements, and fostering private sector development. provincial and federal institutions. It is important to The following three broad areas have been identified make sure that the interventions at the provincial level for future support to address the current challenges in are consistent with an overall structure at the national the sector. level. A system for sharing experiences, problems, successes, and failures among the provinces and the Office of Inspector General of Forests should be 6.1 Policy Interventions strengthened. Various studies and inventories conducted in the country by different organizations/ I. Support to Implement the National Forest provinces could also be harmonized in terms of forest Policy 2015, to Devise and Implement Participatory definition, land use classification, methodology, Policies in the Provinces interpretation, and final results. In addition, inter- provincial issues of law enforcement and illegal timber Forestry being a provincial responsibility, the National trade require strong inter-provincial coordination. Forest Policy 2015 can be effectively implemented only if all the provinces fully accept and own it. This is not III. Create a Conducive Policy Environment for yet the case. To achieve this, broad consultations with Private Sector Participation in the Forestry Sector provincial stakeholders around the policy would help, Because of the significant commercial value of forest especially on the development of an action plan with resources, the private sector can be an important clearly defined responsibilities and time-bound source of forestry financing, as has been the case in targets. In addition, the current forest laws and many other countries. Private sector investment in regulations at the provincial level are mostly outdated forest products could generate revenue that can and have yet to incorporate modern management contribute to funding public sector research, requirements for changing scenarios in the forestry conservation, and law enforcement. Such investments sector, such as community participation, benefit 20 Forests for Green Pakistan need to be safeguarded by a conducive regulatory World Bank's Living Standards Measurement Study framework. Effective policies and regulations can on Forests can be applied to get a comprehensive promote responsible private sector investments for understanding of the impact of forests on rural sustainable forest management and corporate social livelihoods and the national economy. responsibility through community-company partnerships. For capacity building, South-South knowledge exchanges could be organized to help Pakistan learn new management models, such as community 6.2 Technical and Institutional management, public-private partnerships, and payment for ecosystem services. Capacity Building IV. Continue Supporting the Forest Management 6.3 Investments Information System VI. Increase Forest Cover for Socioeconomic and To support effective forest investments, the most Environmental Benefits through Afforestation, urgent thing required in the country is to set up a Agroforestry, and Plantations system for collecting and analyzing data using consistent methods throughout the country. Equally Because of the low forest cover, Pakistan should make important is the mechanism to share data and concerted efforts to increase its forest areas through coordinate among provinces and federal entities. The natural regeneration, reversal of land and forest current situation of data scarcity could be addressed degradation, agroforestry, afforestation, and starting with a national-level forest resource reforestation. Such activities may include establishing assessment and putting a system in place for more nurseries in each province; making high-quality continuous inventory and monitoring of overall seedlings available; and introducing improved parameters, such as forest cover, growing stocks, forest techniques and sustainable business models for seed carbon stocks, forest health, biodiversity, protected collection, planting, and maintenance. The area management system, and the socioeconomic and afforestation should focus not only on timber environmental functions of the forests. production but also on the resilience of landscapes and infrastructures, including roads, railways, and The World Bank is already supporting the irrigation canals. development of a forest management information system through the REDD+ Preparation Grant. Given VII. Promote Forest-based Entrepreneurship and the magnitude of the challenge, continuous support is Livelihood Support essential to strengthen and sustain the efforts undertaken through the REDD+ project. There is a huge potential for forest investments to support an inclusive and green growth agenda. Non- V. Support Forestry Research, Education, timber forest products (NTFPs) such as chilgoza pine, Knowledge Sharing, and Capacity Building walnuts, and wild honey are among the best in the world and possess very high economic values. The current capacity, both at the provincial and federal However, a lack of effective production, processing, levels, appears to be inadequate to address the issues and marketing has prevented the materialization of faced by the sector. Continuous research, training, such values. Forest-based entrepreneurship and knowledge sharing, and capacity building is needed in livelihood opportunities can be enhanced by such areas as the impact of improved varieties of trees identifying high-value NTFP species, promoting their on drought conditions, seed collection, tissue culture, cultivation, developing a system of processing and planting techniques, participatory forest management, value addition, and establishing a mechanism for fair and climate change impact. Equally important is revenue sharing to benefit local communities. In conducting regular socioeconomic research and addition, communities that have medicinal plants and surveys. Policy makers need regularly updated herbs could be linked with companies that require such answers to such questions as: what are the plant products as their raw materials. Lastly, the socioeconomic benefits that forests provide, and what tourism sector provides many opportunities for forest- is their role in poverty alleviation? Tools such as the based entrepreneurship and livelihood support. Forest Policy Note 21 VII. Improve Forest Management Practices and explored and applied to reward communities that are Sustainable Management of Existing Forests the custodians of forest resources and are providing services to other sectors and communities. The trends of deforestation and forest degradation of Community-based forest management strategies the natural forest should be reversed. Management should also be introduced and scaled up. In addition, plans should be prepared for all types of forests (not developing the system of value addition of forest just for production forests) and protected areas and resources through new technologies and marketing should be effectively implemented. Grazing should be could enhance revenue generation. Efficiency of wood regulated and controlled so that natural regeneration utilization could also be enhanced through facilities for can be promoted in the degraded forests. The concept timber treatment, timber processing, and value of payment for environmental services should be addition. 22 Forests for Green Pakistan CHAPTER 07 RECOMMENDATION FOR WORLD BANK ENGAGEMENT The significant role of the forestry sector in Pakistan's development, and disaster risk management. Box 8 national economy, rural livelihood, poverty reduction, shows the alignment of proposed opportunities to sustainable development, climate change mitigation support forest sector investments with the World and adaptation, and resilience to vulnerabilities Bank's Country Partnership Strategy. related to climate change and natural disasters warrants support from the donor community, Given the institutional and regulatory complexity of including the World Bank. Potential forest investments forest management issues in Pakistan, the initial can build on the enabling environment that the engagements should focus on relatively simpler tasks ongoing REDD+ Readiness Project is creating. Forest (such as increasing the forest cover for multiple investments also complement investments in other key benefits) and gradually move to more challenging tasks sectors, including agriculture and livestock, pollution (such as sustainable management of existing forests management, infrastructure and hydropower and addressing issues like land tenure, human-wildlife conflict, and conservation management). Box 8: Alignment of Proposed Opportunities to Support Green Growth through Sustainable Forest Sector Development to the World Bank Country Partnership Strategy 1: Energy 2: Private Sector 3: Inclusion 4: Service Delivery Cross-cutting • Alternative Development • Community • Strengthening Themes fuel sources • Promoting forest management public forest •Making the to decrease sustainable private • Community management economic and deforestation-this sector investment based eco-tourism institutions public goods case could stimulate in forest products • Increased • Promoting forest for forest enterprise in • Promoting resilience to foods for nutrition investment renewable NTFP and disasters in • Improving data •Climate change energy ecotourism targeted region tracking and mitigation and enterprises surveillance of adaptation (particularly for forest resources •Payment for women and environmental youth) services (Source: World Bank Staff) 24 Forests for Green Pakistan These interventions at different stages would have to be focused at the provincial level. At the federal level, Box 9: A Potential Forestry Project in potential support should be on the softer side of Pakistan investment, such as knowledge management, monitoring, coordination, and international The Government of Pakistan, through its reporting. Economic Affairs Division, requested in April 2017 that the World Bank explore financing The forestry sector in Pakistan offers a myriad of support for the Green Pakistan Program. In opportunities to apply transformative technologies. An response to the request, the World Bank increasing demand for wood products and an reviewed the design and implementation of increasing gap between supply and demand could be the program with the Ministry of Climate addressed through biotechnology, which can increase Change and its GPP team, and representatives productivity, shorten rotation periods, and produce of Punjab, Sindh, Balochistan, and Khyber more desirable wood quality. Cellphones and social Pakhtunkhwa provinces. The World Bank media have been used to fight illegal logging in some team and government officials have countries in Africa and could be helpful in Pakistan as tentatively agreed to explore the following well. Forest health, growth, and deforestation could be three areas of engagements: monitored using drones, geographic information systems, global positioning systems, and remote (a) Forest investments for resilient land sensing techniques. Drones have also been used to do -scapes and infrastructure planting on a massive scale in relatively inaccessible (b) Forest investments for economic and areas. Forestry operations that are labor intensive and livelihood development risky could be performed with machines (such as harvesters and forwarders). Finally, all parts of forest (c) Capacity building, monitoring, evalua products (lignocellulosic material) could be used to -tion, and knowledge management produce renewable energy—fuels (for example, ethanol and biodiesel) and electricity—through a In developing these engagements, the World process called biorefinery. Bank would identify specific activities consistent with the World Bank Group Forest Action Plan (FY16–20) and apply relevant tools, such as those of PROFOR for example, a n d P R I M E ( P r o d u c t i v i t y, R i g h t s , Investments, Markets, Ecosystems). Gender mainstreaming and the potential application of new technologies would be emphasized in such engagements. Forest Policy Note 25 REFERENCES Ali, A. 2017. Forest Reference Emission Level of KP. /files/import/downloads/nbsap_1st_draft_23_3_15.pdf Pakistan Forest Institute, Peshawar. ———. 2016. Pakistan's Intended Nationally Ali, A., K. Hussain, and Ismail. 2017. Forest Carbon Determined Contribution (PAK-INDC). Submitted to Inventory of GB. GB Forestry and Wildlife UNFCCC in October 2016. Department, Gilgit. Hansen, et al. 2013. “Hansen/UMD/Google/USGS/ Bukhari, S. B., T. Laeeq, and H. Ali. 2012. “Land NASA Tree Cover Loss and Gain Area.” University of Cover Atlas of Pakistan.” Pakistan Forest Institute. Maryland, Google, USGS, and NASA. Accessed through Global Forest Watch on 12/12/2017. FAO (Food and Agriculture Organization). 2009. www.globalforestwatch.org. “Pakistan Forestry Outlook Study.” Working Paper No. APFSOS II/WP/2009/28, Office of the Inspector Lange, Glenn-Marie, Quentin Wodon, and Kevin General of Forests, Ministry of Environment. Asia- Carey, eds. 2018. The Changing Wealth of Nations Pacific Forestry Sector Outlook Study II. 2018: Building a Sustainable Future. Washington, DC: World Bank. ———. 2010. Global Forest Resources Assessment 2010. Shah, H., and Saz Mohammad. 2016. State of Forestry in Pakistan. Pakistan Forest Institute, Peshawar. ———. 2014. Global Forest Resource Assessment 2015. Country Report. Pakistan. UNDP (United Nations Development Programme). 2010. “Forests and Biodiversity.” Technical Paper, ———. 2017. Forestry Sector Review. Pakistan. UNDP, Islamabad. Government of Pakistan. 2013. REDD+ Readiness ———. 2016. Human Development Report 2016. Preparation Proposal. Submitted to FCPF. Human Development for Everyone. ———. 2015. Pakistan National Biodiversity Strategy and Action Plan. https://www.iucn.org/sites/dev 26 Forests for Green Pakistan ANNEX A COMPARISON OF PROVINCE-WISE FOREST AREA ESTIMATES THROUGH VARIOUS STUDIES A number of additional regional studies have been Integrated Mountain Development also carried out a carried out from time to time, including the Provincial study, Mapping Deforestation and Forest Degradation Forest Resource Inventory (PFRI) in 2005, the Study Patterns in Western Himalaya, Pakistan, 2016, which on Timber Harvesting Ban (STHB) in 2010, and the covers the hilly parts of AJK, GB, and KP. None of these district-wide natural resource database report of 2012. studies, however, cover the entire resources of the The Carbon Stock Assessment Report of KP and the country or all types of forests. Forest Carbon Inventory Report of GB, both in 2017, digitally assessed areas under forest cover in KP and This table shows different sources of available data on GB, respectively. The Integrated Center for the forest area in Pakistan. Table A: Comparison of Province-wise Forest Area Estimates through Various Studies (million ha) Province/ FSMP, NLUP, NFRRAS Land cover Land cover Forestry Administrative 1992 1998–99 1997 2001 Atlas Atlas, Statistics 1 Areas 2012 2012 of Pakistan 2016 Punjab 0.608 0.855 o.460 0.440 0.554 0.554 0.67 Sindh 0.399 0.848 0.270 0.280 0.660 0.660 0.72 KP 1.684 2.311 1.520 1.490 1.508 1.464 1.85 Balochistan 0.592 0.508 0.710 0.450 0.499 0.499 0.50 FATA Include NR NR NR 0.534 0.534 Included d in KP in KP GB 0.666 NR 0.310 0.320 0.337 0.314 0.35 AJK 0.275 NR 0.330 0.340 0.435 0.432 0.42 Total 4.224 4.523 3.600 3.320 4.549 4.478 4.51 Percentage 4.7 5.1 4.1 3.8 5.1 5.1 5.1 Sources: Bukhari, Laeeq, and Ali (2012); Shah and Mohammad (2016). Notes, as presented in FAO (2017): 28 Forests for Green Pakistan 1. FSMP (1992): In 1992, to prepare the Forestry Sector Here are the forest area estimates, based on the various Master Plan (FSMP), the Office of Inspector General of Forests studies referred above: digitally assessed the area under forests and rangelands for the first time. It used 54 scenes of Landsat satellite images (1990–91) • Based on the results of the above studies, it is clear of 30 m2 resolution. The assessment covered the entire country; that the total forest area of the country increased however, estimates of Federally Administered Tribal Areas by 0.979 million ha from 1992 to 2011. The forest (FATA) were not disaggregated. FSMP reports include detailed estimates of growing stock and the growth, total standing areas of AJK, KP, Punjab, and Sindh increased volume of coniferous forests, total annual increment and during this period, while the forest areas of growth, trees on farmlands, and demand for and supply of Balochistan and GB decreased. wood in the country. It has made projections to estimate wood supply and demand for the next 25 years and made • Coniferous forests in the country were reduced at recommendations to narrow down the gap between supply and a rate of 40,100 ha per year between 1992 and demand. Although it was intended that forest resources would 2001. During the first five years, the rate of be assessed every five years and data be updated, this has not depletion of forest resource was 86,800 ha per occurred. year; from 1997 to 2001, however, a positive 2. The National Land Use Plan (NLUP) report was trend was seen in which coniferous forests started published by the Ministry of Environment (MoE), now renamed replenishing at a rate of 6,600 ha per year. Thus, the Ministry of Climate Change (MoCC), based on Landsat-5 there has been an overall increase of 0.296 million TM satellite images of 1989–99. ha in coniferous forests from 1992 to 2011. 3. The National Forest and Range Resource Assessment Study (NFRRAS) was also published by the MoE in 2004. The • Scrub forests showed an upward trend in area study covers exactly the same area that was covered earlier by from 1992 to 1997, when the area increased from the FSMP. It used 1997 and 2001 Landsat Thematic Mapper 1.191 million ha to 1.652 million ha. During the (TM) images of 30 m2 resolution. The objective of this study was subsequent five years, however, the area under to detect changes in forest and rangeland areas. Ground scrub forests decreased to 1.323 million ha. In a truthing was done with the help of 2,000 stratified randomized sampling points. nutshell, the area under scrub forests slightly decreased from 1.191 million ha in 1992 to 1.323 4. Land cover Atlas of Pakistan (2012), prepared by the million ha in 2011. Pakistan Forest Institute (PFI), used SPOT-5 satellite images (2007–08) for KP and AJK; for Punjab, Sindh, Balochistan, and • Riverine forests decreased at a rate of 2,300 ha GB, images were downloaded from Google Earth. The visual per year from 1992 to 2001. During the interpretation of images was carried out using ERDAS Imagine and Arc GIS software. The results were validated through subsequent five years, however, the rate of ground truthing at 1,957 sample points identified through a degradation slowed and, subsequently, the area stratified randomized sampling technique. It assessed all forest increased. While comparing data from 1992 and types in detail and provided separate data on all provinces and 2011, it becomes evident that the overall area of regions, including FATA. It contains district-wide estimates of riverine forests has increased from 0.173 million 131 districts in all provinces, Islamabad District, seven agencies, ha to 0.216 million ha. and six FATA frontier regions. 5. Forestry Statistics of Pakistan (Shah and Mohammad • Mangrove forests were degrading at a rate of 2016) is a document of the PFI that is prepared based on 4,900 ha per year from 1992 to 2001. The area of departmental figures and secondary data. It contains estimates mangrove forests has, however, shown an overall of forest area, annual harvesting, and wood supply and increase from 0.207 million ha in 1992 to 0.355 demand. million ha in 2011. 9 Area excluding alpine scrub. Forest Policy Note 29 ANNEX B CLASSIFICATION OF FORESTS BASED ON LEGAL STATUS, TENURE TYPE, AND ECOLOGY Forests Types Based on Legal and Tenure Type (like cutting of trees and quarrying). Local people have some rights and concessions for • State-owned Forests. The state-owned forests grazing, grass cutting, collection of dry wood, comprise about 85 percent of Pakistan's total and so forth. forest area. They contain the following four subclasses based on legal designation and o Unclassed Forests. These are state-owned protection: forested lands under the control of the Forest Department which have neither been declared o Reserved Forests. These are state-owned reserved nor protected. forests declared reserved under the Pakistan Forest Act, 1927. All activity is prohibited in o Resumed Lands. These are lands surrendered these forests unless specifically allowed. by larger owners, following the fixing of a ceiling on the extent of land ownership under o Protected Forests. These forests are also state the Land Reforms Act of 1959. Affected owned, but pending reservation and landowners retained cultivated lands settlement of rights have been declared but surrendered wooded lands above the protected under the Forest Act. In these forests ceiling. These resumed lands are managed by all acts are allowed unless specifically banned the Forest Department. Table B.1: Province-based Detail of Forest Area by Legal Classification (thousand ha) Legal Punjab Sindh KP Balochistan GB AJK Total Category State (AJK) — 48 — 707 — 567 1,322 Reserved 311 278 106 — — — 645 Protected 2,736 795 467 378 67 — 4,443 Unclassed 103 11 — — — — 114 Resumed 9 5 33 — — — 47 Guzara 68 — 248 — — — 316 Communal — — — — 2,983 — 2,983 Section 38 19 — 26 1 — — 46 Chos Act 1 — — — — — 1 Miscellaneous 21 — 432 239 — — 692 Total 3,268 1,087 1,312 1,325 3,050 567 10,609 Source: Wani, B. A., Shah, and Khan (2004). Forestry Statistics of Pakistan. PFI, Peshawar 30 Forests for Green Pakistan • Privately Owned Forests: Privately owned forests o Section 38 Areas. These are areas offered by are forests held in private ownership. They private owners to the Forest Department for include the following five categories: afforestation and management for an agreed- upon period ranging from 10 to 20 years under o Guzara (subsistence) Forests. These are Section 38 of the Pakistan Forest Act 1927. sizeable patches of wooded lands close to habitations which were set aside in 1872 to o Plantations and Farm Forest Areas. These are meet the bona fide domestic needs of local plantations on private lands and farm tree communities during land settlements in resources on farm lands that are accounted for Hazara, North West Frontier Province, and but not legally declared forests. Murre Hills, Punjab. Ownership is vested in local people either individually or jointly as Forests Types based on Ecology “village shamilat.” • Himalayan Dry Temperate Forests: Found o Community Forests. Community forests are a between 1,525 m and 3,350 m. sub-category of Guzara forests that are • Himalayan Moist Temperate Forests: Occur essentially owned by the entire village. between 1,375 and 3,050 m; contain blue pine Community forests are mostly found in (Pinus wallichiana), fir (Abies pindrow), and Rawalpindi in Punjab Province. spruce (Picea smithiana), with some deodar. o Chos Act Areas. These are privately owned • Oak Forests: Found mixed in conifer forests lands subject to erosion hazard, endangering along riparian systems and as pure stands from vital public installations or structures, that have 1,200 m to 1,500 m. been taken over by the government under the Chos Act, 1900. These areas may be returned to • Subtropical Pine Forests: The chir pine forests their original owners after stabilization. occur between 900 m and 1,700 m. Table B.2: Distribution of Various Types of Forests in Different Provinces and other Administrative Areas Forest Types Punjab Sindh KP Balochistan FATA GB AJK Total Dry 0 0 532,591 125,485 317,924 254,961 48,013 1,278,974 Temperate Moist 17,249 0 391,668 0 1,648 0 162,647 573,212 Temperate Chir Pine 27,283 0 217,753 0 6,447 0 105,343 356,826 Scrub 345,374 0 222,373 294,636 135,313 0 93,538 1,108,942 Tropical 42,556 52,501 12,007 76,425 34,120 0 0 217,609 Thorn Riverain 32,099 183,835 0 0 0 0 0 215,934 Mangroves 0 353,062 0 2,360 0 0 0 355,422 Oak Forests 0 0 83,480 0 28,588 58,851 3,484 174,403 Subtotal 464,561 589,398 1,459,872 498,906 524,040 313,812 413,025 4,281,322 (Natural) Plantations 89,309 71,186 4,190 0 10,539 0 18,747 196,598 Subtotal 553,862 660,584 1,464,062 498,906 534,579 313,812 431,772 4,477,920 (Forests) Total Area 20,540,449 14,263,918 7,448,636 35,194,796 2,733,268 6,981,387 1,178,0 88,430,442 38 % of Natural 2.3 4.1 19.6 1.4 19.2 4.5 35.1 4.8 Forests % of Forests 2.7 4.6 19.7 1.4 19.6 4.5 36.7 5.1 to Total Land Source: Bukhari, Laeeq, and Ali (2012). Forest Policy Note 31 • Subtropical Broadleaved Evergreen Forests: azedrechata, poplars, salix, and eucalyptus trees. Found between 400 m and 1,000 m. • Mazri Palm Forests: Dwarf palm forests of Mazri • Tropical Thorn Forests: Found up to 400 m over (Nannorrhops richiana) are found in degraded the whole of the Indus Plain; mostly xerophytic subtropical areas. trees such as Acacias. • Linear Plantations: Found along the roads, • Riverain Forests or Bela Forests: Occur in flood canals, and railways; the main species are plains along banks of major rivers, particularly Dalbergia sissoo and Acacia nilotica. the Indus and its tributaries. • C o a s t a l L i t t o r a l a n d S w a m p Fo r e s t s • Irrigated Plantations: Major species are (Mangroves): Found in the coastal zone. Dalbergia sissoo, Bombax ceba, Morus alba, Melia 32 Forests for Green Pakistan ANNEX C INVESTMENT IN PAKISTAN'S FORESTRY SECTOR A total of PKR 11.354 billion has been allocated to the 3. Endowment Funding. Some provinces and other forestry sector in 2016–17. administrative areas have developed flexible funding sources to provide resources to There are five types of funding sources in Pakistan, also departments to ensure timely availability of funds presented in the table above. These include: for seasonal activities without lengthy and 1. Recurrent Budget. This is the routine budget cumbersome procedures for accessing funds. adopted by the assembly of the concerned state to These funding sources include the Forestry fulfill the administrative and routine functions of D e v e l o p m e n t Fu n d i n K P, t h e Fo r e s t the department. It covers expenditures for Regeneration Fund in GB, and the Forest routine works, such as establishment charges, Development Fund in FATA. consumables, operational and transport charges, 4. Donor Funding. Donors such as the World Bank felling, marking, and transportation of timber. and the Asian Development Bank provide grant 2. Development Budget. This is a budget for special and loan funding under bilateral and multilateral investment and development activities, including funding arrangements through the Economic the creation of resources and execution of Affairs Division. United Nations bodies and conservancy and development works beyond the UNFCC frameworks, like GEF and Green jurisdiction of routine works. The development Climate Fund, also support forestry work. The budgets of the provinces are called Annual funding is project based and provided for specific Development Programmes (ADP), while that of time periods. the Federal Government is called the Public 5. Private Sector Funding. Funding from forest Sector Development Programme (PSDP). The companies and the private sector, including the development funds are requested through a Forest Development Corporation and company project document called PC-1. corporate social responsibility initiatives, is also available for forestry interventions. Table C: Province-based forestry department 2016 expenditures in Pakistan (PKR million). Funding Punjab Sindh KP Balochistan FATA GB AJK Total Sources Recurrent 3,303.828 400.000 1,138.594 563.70 262.44 272.38 597.667 6,538.609 Budget ADPa 2,000.000 322.827 280.000 298.23 975.35 168.00 335.210 4,379.617 PSDPb — — — — — — 120.000 120.00 Donors — — — — — — 216.000 216.00 Others — — 100.000 — — — — 100.00 Total 5,303.828 722.827 1,518.594 861.93 1,237.79 440.38 1,268.877 11,354.226 Source: FAO (2017). Note: a. Annual Development Programme; b. Public Sector Development Programme. Forest Policy Note 33 ANNEX D BRIEF OVERVIEW OF DONOR-FUNDED PROJECTS IN THE FORESTRY SECTOR Project Name Project Project Amount Key Activity/Results Area Period ($, millions) World Bank Supported Projects Balochistan Natural Balochistan 1994– 14.7 Created an independent Resource Management 2000 Balochistan Environmental Project Protection Council (BEPC) and strengthened the Balochistan Environmental Protection Agency (BEPA) Punjab Forest Sector Punjab 1995– 24.87 Achieved policy reforms Development Project 2001 related to the tree seedling subsidy, initiated a shift from a “command and control” Forest Department to consultation with community members, and significantly increased private sector nurseries REDD+ Readiness National 2015– 3.8 Developed the National Preparation Project 2018 REDD+ Strategy, prepared a Strategic Environmental and Social Assessment/Environmental and Social Management Framework, and established national forest reference levels and a national forest monitoring system Other Donor-funded Projects Pakistan: Forestry KP 1996– 42.6 (7.4 Completed resource inventory Sector Project 2007 by the and management planning, (Funding: ADB) closing) strengthened the legal framework, and enhanced institutional capacity on social forestry Pakistan: Sind Forestry Sindh 1986 150 Promoted farm forestry and Development Project developed working plans for (Funding: ADB) managing state forests sustainably 34 Forests for Green Pakistan Project Name Project Project Amount Key Activity/Results Area Period ($, millions) Forestry Planning and National 1982– — Promoted farm forestry, agr o- Development Project 1994 forestry, and community (Funding: USAID; forestry, and established Implementation: farmers’ networks Winrock International) Siran Kaghan Siran and 1980 — Replaced a single-tree selection Intensive Forest Kaghan system with a group selection Management Project valleys system, and worked on artificial (SKIFMP) restocking of the forest (Funding: GIZ) Kalam Integrated KP 1981– 41.5 Focused on improving forest Development Project 1998 [Swiss management involving local (KIDP) franc] communities, improving forest (Funding: SDC) harvesting techniques through small contractors, and promoting village development programs Mountains and KP and GB 2012– 7.793 Enabled communities for Markets: Biodiversity 2017 ecosystem-based enterprises to and Business in sustainably produce Northern Areas biodiversity goods and services (Funding: GEF; in select conservation areas Implementation: UNDP) Sustainable Land 4 provinces 17.0 Conducting upscale climate- Management (SLM) resilient SLM activities and Programme to Combat implementing Land Use Desertification in Planning and Decision Support Pakistan - Phase-II System (Funding: GEF; Implementation: UNDP) Sustainable Forest Punjab, 2016– 8.34 Incorporating SFM in forest Management (SFM) to Sindh, and 2020 management planning, Secure Multiple KP strengthening biodiversity Benefits in Pakistan’s conservation in the High Value High Conservation Conservation Forests , and Value Forests enhancing carbon storage (Funding: GEF; Implementation: UNDP) Scaling up of Glacial 15 districts 2017– 37 Empowering communities to Lake Outburst Flood of KP and 2022 manage risks associated with (GLOF) Risk GB GLOFs and related impacts of Reduction in Northern climate change and Pakistan strengthening public services to (Funding: Green lower the risk of disasters Climate Fund; related to GLOFs Implementation: UNDP) Forest Policy Note 33