Political stability and good governance as catalysts for achieving sustainable cities, clean energy, and responsible consumption: evidence from an emerging economy – Nature

Report on the Impact of Political Stability and Good Governance on Sustainable Development Goals in Pakistan

Abstract

This report investigates the critical roles of political stability, good governance, and institutional support in achieving Sustainable Development Goals (SDGs) 7, 11, and 12 within the emerging economy of Pakistan. The study focuses specifically on SDG 7 (Affordable and Clean Energy), SDG 11 (Sustainable Cities and Communities), and SDG 12 (Responsible Consumption and Production). Utilizing quantitative data from governmental bodies and non-governmental organizations, the analysis concludes that political stability provides the essential foundation for sustainable development. The implementation of good governance, characterized by transparency and accountability, significantly enhances the effectiveness of policies targeting these SDGs. Key findings identify financial resources and physical infrastructure as critical factors for progress. The report recommends that policymakers prioritize investments in sustainable infrastructure projects that directly align with SDGs 7, 11, and 12, including renewable energy, sustainable urban development, and responsible consumption practices, to foster sustainable economic growth.

1.0 Introduction

Political Stability (PS) and Good Governance (GG) are recognized as pivotal drivers of Economic Growth (EG), particularly in developing nations like Pakistan. However, the specific pathways through which these factors influence economic outcomes via the framework of the Sustainable Development Goals (SDGs) remain underexplored. This report aims to address this gap by assessing the contributions of PS and GG to the achievement of specific SDGs and their subsequent impact on Pakistan’s economic growth. The focus is centered on the interconnected nature of the following goals:

• SDG 7: Affordable and Clean Energy – Essential for powering economic activity, industrial processes, and addressing climate change.
• SDG 11: Sustainable Cities and Communities – Crucial for managing rapid urbanization, which is a major engine of economic growth but also a source of significant environmental challenges.
• SDG 12: Responsible Consumption and Production – Aims to decouple economic growth from environmental degradation by promoting resource efficiency and sustainable infrastructure.

The study also explores the moderating effect of Institutional Support (IS) on these relationships to provide a comprehensive analysis. Pakistan has integrated the SDGs into its National Development Agenda, with a particular focus on institutional reforms to generate clean energy (SDG 7) and create a sustainable food system (contributing to SDG 12). This report evaluates the complex interplay between governance structures and the successful implementation of these critical sustainable development targets.

2.0 Literature Review

2.1 The Role of Political Stability in Sustainable Development

Political stability is a key determinant for achieving sustainable development, as it fosters a predictable policy environment necessary for long-term investments and sustainability initiatives. A stable political structure enables the consistent implementation of environmental measures crucial for meeting SDG targets.

• Impact on SDG 7 (Affordable and Clean Energy): Political stability is a key enabler for long-term investments in renewable energy infrastructure. Stable governments can implement consistent energy policies, subsidize the transition to clean technologies, and reduce dependency on fossil fuels, thereby advancing SDG 7.
• Impact on SDG 11 (Sustainable Cities and Communities): Stability encourages long-term urban planning, proper resource allocation, and investments in sustainable transportation and housing. This allows governments to implement resilient smart city projects that contribute directly to SDG 11.
• Impact on SDG 12 (Responsible Consumption and Production): A stable political environment is necessary to enforce regulations that promote sustainable industrial practices and green technologies, which are central to achieving SDG 12.

2.2 The Role of Good Governance in Sustainable Development

Good Governance (GG), characterized by transparency, accountability, and participatory decision-making, is a vital instrument for achieving the SDGs. It ensures that resources are used optimally and facilitates the implementation of policies that promote environmental and social welfare.

• Impact on SDG 7 (Affordable and Clean Energy): GG promotes transparent energy laws and creates fair access to energy markets. Governance frameworks that support public-private partnerships are effective in accelerating the adoption of renewable energy and reducing energy poverty, in line with SDG 7.
• Impact on SDG 11 (Sustainable Cities and Communities): Strong governance mechanisms shape urban sustainability through the enforcement of zoning laws, smart infrastructure investments, and the integration of sustainability into public policy. This is essential for managing waste, improving public transport, and achieving the goals of SDG 11.
• Impact on SDG 12 (Responsible Consumption and Production): GG drives the enforcement of Corporate Social Responsibility (CSR) policies, sustainable procurement standards, and environmentally friendly production regulations. This helps reduce environmental degradation and promotes sustainable consumption patterns, directly supporting SDG 12.

2.3 The Mediating Role of Specific Sustainable Development Goals

2.3.1 SDG 7: Affordable and Clean Energy as a Mediator

Access to clean and affordable energy (SDG 7) is fundamental to both economic growth and human well-being. In Pakistan, energy poverty remains a significant challenge, making the achievement of SDG 7 difficult but critical. Strong governance is required to transition from conventional energy sources to renewable alternatives, which in turn stimulates sustainable economic development. SDG 7 acts as a bridge, connecting political stability and good governance with economic prosperity through the development of a sustainable energy sector.

2.3.2 SDG 11: Sustainable Cities and Communities as a Mediator

With rapid urbanization, SDG 11 is essential to Pakistan’s development. Effective city governance is required to manage resources, implement urban climate measures, and meet SDG 11 targets. Political stability allows for long-term urban sustainability policies, while good governance prevents mismanagement of resources and ineffective urban planning. By fostering sustainable urbanization, SDG 11 translates the benefits of stable and effective governance into tangible economic development.

2.3.3 SDG 12: Responsible Consumption and Production as a Mediator

SDG 12 plays a dynamic role in fostering sustainable economic growth by promoting resource efficiency and waste minimization. Political stability enables long-term commitments to sustainable industrial policies, while good governance ensures the implementation of environmental regulations and corporate responsibility. SDG 12, therefore, mediates the relationship between governance and economic growth by aligning economic activities with sustainable production and consumption patterns.

2.4 The Moderating Role of Institutional Support

Institutional Support (IS) is critical for translating political stability and good governance into successful SDG outcomes. Strong institutions provide the regulatory frameworks necessary for urban planning (SDG 11), environmental governance (SDG 12), and infrastructure development (SDG 7). In Pakistan, inconsistencies in local governance have posed challenges. Strengthening institutional capacities, minimizing political interference, and integrating sustainable policies into national frameworks are essential for achieving SDGs 7, 11, and 12.

3.0 Research Methodology

3.1 Data Collection and Sample

A quantitative research methodology was employed for this study. Data was collected through questionnaires administered between September and December 2024. The target population included officials and experts from various governmental and non-governmental organizations in Pakistan relevant to the SDGs under investigation.

1. Sources: Data was gathered from the Ministry of Planning, Development & Special Initiatives; the Ministry of Climate Change; the Pakistan Institute of Development Economics; and NGOs working on renewable energy, sustainable cities, and responsible consumption.
2. Sampling: A simple random sampling technique was used. A total of 610 questionnaires were distributed, and 504 valid responses were collected, yielding a final response rate of 82.62%.
3. Instrument: The questionnaire used a five-point Likert scale and was developed based on scales from previously validated research.

3.2 Data Analysis

The collected data was analyzed using Structural Equation Modeling (SEM) with the SmartPLS 4 software. This technique was chosen to test the complex relationships proposed in the conceptual framework, including direct, mediating, and moderating effects related to the achievement of SDGs 7, 11, and 12.

4.0 Results

4.1 Direct Effects on SDGs and Economic Growth

The analysis of direct relationships yielded the following significant findings:

• Political Stability (PS) has a significant positive impact on Economic Growth (EG).
• PS positively influences the achievement of SDG 7 (Affordable and Clean Energy) and SDG 11 (Sustainable Cities and Communities). However, its direct impact on SDG 12 (Responsible Consumption and Production) was not significant.
• Good Governance (GG) has a significant positive impact on EG.
• GG positively influences the achievement of SDG 7, SDG 11, and SDG 12.
• The achievement of SDG 7, SDG 11, and SDG 12 all have a positive and statistically significant influence on EG.

4.2 Mediation Effects of SDGs

The study confirmed that the selected SDGs play a crucial mediating role:

• SDG 7 significantly mediates the relationship between PS and EG.
• SDG 11 significantly mediates the relationship between both PS and EG, and GG and EG.
• SDG 12 significantly mediates the relationship between both PS and EG, and GG and EG.

4.3 Moderating Effects of Institutional Support

Institutional Support (IS) was found to be a significant moderator:

• IS significantly strengthens the positive relationship between PS and the achievement of SDG 7, SDG 11, and SDG 12.
• IS significantly strengthens the positive relationship between GG and the achievement of SDG 7 and SDG 11. The moderating effect on the relationship between GG and SDG 12 was not significant.

5.0 Discussion

The findings confirm that political stability and good governance are not just beneficial but essential for making tangible progress on the Sustainable Development Goals in Pakistan. The positive impact of PS and GG on SDG 7 and SDG 11 underscores that a stable and transparent environment is necessary to attract long-term investment in renewable energy and to execute complex urban planning projects.

The significant mediating role of all three SDGs (7, 11, and 12) demonstrates that they are key channels through which good governance and stability translate into sustainable economic growth. For instance, by advancing SDG 7, Pakistan can reduce energy deficits and power its industries cleanly, leading to economic expansion. Similarly, progress on SDG 11 creates efficient, resilient cities that are hubs of economic activity. The role of SDG 12 highlights that sustainable growth is increasingly dependent on resource efficiency and green technologies.

The moderating effect of Institutional Support reinforces the idea that policies are only as effective as the institutions that implement them. Strong institutions amplify the positive effects of good governance and political stability, ensuring that initiatives related to clean energy and sustainable cities are successfully executed and maintained.

6.0 Conclusion and Policy Implications

6.1 Conclusion

This report concludes that political stability serves as the foundational prerequisite for achieving SDGs 7, 11, and 12 in Pakistan. Good governance acts as a catalyst, enhancing the effectiveness of policies aimed at these goals. The successful attainment of these SDGs, in turn, directly contributes to sustainable economic growth. The study highlights a clear pathway: stable politics and transparent governance, reinforced by strong institutional support, lead to progress on clean energy, sustainable cities, and responsible consumption, which collectively drive national economic prosperity. To address Pakistan’s development challenges, a multi-stakeholder approach is required, ensuring that efforts to achieve the SDGs are coordinated between federal and provincial governments and supported by robust monitoring systems.

6.2 Policy Implications

Based on the findings, the following policy actions are recommended:

1. Strengthen Institutional Frameworks: Policymakers must focus on building robust institutional frameworks that promote political stability and good governance. This includes implementing stringent anti-corruption measures and establishing independent oversight bodies.
2. Prioritize Sustainable Infrastructure Investment: Investments should be strategically directed towards projects that align with SDGs 7, 11, and 12. This includes funding renewable energy sources, promoting sustainable urban development, and supporting industries that adopt responsible consumption and production practices.
3. Enhance the Rule of Law: Ensuring a strong and independent judiciary is fundamental for creating a stable environment that protects investments and human rights, which is crucial for long-term sustainable development projects.
4. Foster Public-Private Partnerships (PPPs): Managers in public and private sectors should collaborate to leverage resources, technology, and expertise. PPPs can be a critical tool for advancing SDG-related projects, particularly in the energy and urban infrastructure sectors.
5. Build Capacity for Sustainable Development: Organizations should invest in raising awareness and building capacity among employees and stakeholders regarding the SDGs, integrating them into organizational planning and operations to foster innovation.

7.0 Limitations and Future Research

7.1 Limitations

This study’s findings are subject to certain limitations. First, its focus on Pakistan may limit the generalizability of the results to other developing countries with different political and socio-economic contexts. Second, the quantitative measurement of complex concepts like “good governance” and “political stability” presents inherent methodological challenges. Finally, the study may not have captured the full spectrum of stakeholder perspectives on SDG implementation in Pakistan.

7.2 Future Research Directions

Future research could expand upon this study in several ways:

• Conduct cross-country comparative analyses to understand how different governance models impact SDG achievement.
• Incorporate other relevant goals, such as SDG 9 (Industry, Innovation, and Infrastructure) and SDG 13 (Climate Action), to explore their relationship with political stability and governance.
• Employ longitudinal studies to track how changes in governance and political stability over time affect sustainable development outcomes.
• Utilize mixed-methods research, including qualitative case studies, to gain deeper insights into the institutional mechanisms that foster sustainable economic growth.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article explicitly and primarily focuses on three Sustainable Development Goals (SDGs). The connection is established in the abstract and reinforced throughout the text, linking them to political stability, good governance, and economic growth in Pakistan.

• SDG 7: Affordable and Clean Energy: The abstract directly states, “SDG 7 deals with affordable, reliable, sustainable and modern energy for all.” The article discusses the importance of renewable and clean energy initiatives, the country’s reliance on fossil fuels, and the need for investments in sustainable energy projects to achieve this goal.
• SDG 11: Sustainable Cities and Communities: The abstract mentions that “SDG 11 deals with sustainable cities and communities.” The text elaborates on challenges arising from urbanization, such as air pollution and increased demand on infrastructure, and highlights the need for sustainable urban development, green infrastructure, and effective urban planning.
• SDG 12: Responsible Consumption and Production: The article identifies that “SDGs 12 promotes sustainable consumption and production patterns.” It discusses the importance of resource and energy efficiency, waste minimization, and reducing environmental degradation through sustainable industrial policies and practices.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the issues discussed, several specific targets under SDGs 7, 11, and 12 can be identified:

1. Under SDG 7 (Affordable and Clean Energy):
   • Target 7.1: Ensure universal access to affordable, reliable and modern energy services. This is implied by the discussion on “energy for all,” the challenges of “energy poverty” in Pakistan, and the need to provide “low-cost electricity rates.”
   • Target 7.2: Increase substantially the share of renewable energy in the global energy mix. The article directly supports this target by emphasizing the need to “prioritize investments in sustainable infrastructure projects that align with SDGs 7… such as investing in renewable energy sources” and transitioning away from fossil fuels.
   • Target 7.a: Enhance international cooperation to facilitate access to clean energy research and technology… and promote investment in energy infrastructure and clean energy technology. This is connected to the statement that political stability is crucial for attracting “international investors” and “foreign direct investment in renewable energy projects.”
2. Under SDG 11 (Sustainable Cities and Communities):
   • Target 11.3: Enhance inclusive and sustainable urbanization and capacity for participatory, integrated and sustainable human settlement planning and management. This is reflected in the article’s call for “effective strategies for planning and managing urban resources,” “sustainable urban development,” and “efficient management of urban transition.”
   • Target 11.6: Reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management. The article directly addresses this by mentioning the need to tackle “urban air pollution,” “excessive energy usage,” and implement effective “waste management.”
   • Target 11.a: Support positive economic, social and environmental links between urban, peri-urban and rural areas by strengthening national and regional development planning. This is implied by the policy recommendation to create “small towns… by providing sufficient agricultural services, which can discourage people from moving to cities.”
3. Under SDG 12 (Responsible Consumption and Production):
   • Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources. This is central to the article’s definition of SDG 12, which “entails the encouragement of resource and energy efficiency.”
   • Target 12.4: By 2020, achieve the environmentally sound management of chemicals and all wastes throughout their life cycle… and significantly reduce their release to air, water and soil in order to minimize their adverse impacts on human health and the environment. This is supported by the discussion on mitigating “environmental degradation, which encompasses activities, such as… industrial waste generation, and carbon emissions.”
   • Target 12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse. The article connects this target to SDG 12 by highlighting the importance of “waste minimization” as a key component of responsible consumption and production.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

The article, being a policy and governance-focused study, does not list specific numerical indicators but implies several measurable factors that can serve as indicators for progress.

• For SDG 7 Targets:
  • Renewable energy consumption: Mentioned as a key area for investment and a way to address climate concerns. This can be measured as a percentage of total energy consumption.
  • CO2 emissions: The article links fossil fuel reliance to “global CO2 emissions,” making emission levels a clear indicator of progress towards cleaner energy.
  • Investment in clean energy: The text highlights that “funds and investments specifically for renewable and clean energy initiatives” have been allocated, making financial flows a key indicator.
  • Energy prices: The article states that “rising energy prices” contribute to energy poverty and have an “adverse economic effect,” making affordability an important metric.
• For SDG 11 Targets:
  • Levels of urban air pollution: The article identifies “air pollution” as a major problem arising from urbanization, implying that metrics like particulate matter (PM2.5) concentration are relevant indicators.
  • Investment in sustainable urban infrastructure: The call to “prioritize investments in sustainable infrastructure projects” makes the financial value of these projects a direct indicator of commitment.
  • Rate of urbanization: The article discusses the “transition to an urbanized environment” and the need for its “efficient management,” making the rate and pattern of urban growth a key indicator to monitor.
• For SDG 12 Targets:
  • Amount of industrial waste generation: Mentioned as a form of “environmental degradation,” the volume of industrial waste is a direct indicator of unsustainable production.
  • Resource and energy efficiency: The article defines SDG 12 as encouraging “resource and energy efficiency,” which can be measured through indicators like material footprint or energy intensity per unit of GDP.
  • Carbon emissions: Linked to unsustainable production and consumption patterns, CO2 emissions serve as a cross-cutting indicator for environmental impact.

4. Table of SDGs, Targets, and Indicators

Source: nature.com