‘Pakistan needs $50bn annually to mitigate to climate risks'
In 2022 alone, climate-induced disasters inflicted over USD 30 billion in damages, with recovery needs exceeding $16.3 billion.
Air pollution alone causes over 128,000 premature deaths annually, while productivity in agriculture has declined by 10–20 percent due to climate variability, further straining livelihoods and the economy. Experts warn that Pakistan now requires $40–50 billion annually to effectively mitigate and adapt to climate risks.
Speaking at the report launch, Ministry of Climate Change and Environmental Coordination (MoCC&E) Secretary Aisha Humera Chaudhry said: 'Pakistan's climate vulnerability is a globally acknowledged reality. But to respond effectively, we must channel substantial and timely climate finance towards local solutions.
The role of the private sector, as showcased by OICCI and its member companies, is central to our national climate strategy. We call on international partners to match Pakistan's climate ambition with significant funding support.'
The economic argument for climate finance is clear. Without urgent decarbonisation, Pakistan's exports face mounting risks under new global trade frameworks, such as the EU's Carbon Border Adjustment Mechanism.
OICCI Secretary General M Abdul Aleem stressed: 'Pakistan's reliance on fossil fuels and carbon-intensive practices puts our exports at risk, especially under frameworks like the EU's Carbon Border Adjustment Mechanism. Decarbonization and green finance are no longer optional, they are essential to sustaining economic growth and global competitiveness.'
Sustainable Development Policy Institute (SDPI) Executive Director Dr Abid Suleri reinforced the need for collaborative policy and financing mechanisms: 'In the context of eroding public and grant based climate finance, market-based solutions and private sector is not part of problem but an amicable solution to climate crises.
Climate catastrophes are not a future concern; it is today's socioeconomic reality. Pakistan must now move beyond pledges and create an ecosystem where private investment in climate resilience is not only encouraged but enabled through consistent policy, data transparency, and accessible financing instruments.'
ACCA President Ayla Majid emphasised the role of skills and financial expertise in climate action: 'Mobilising climate finance is not just about securing funds, it is about ensuring they are deployed effectively, with transparency and measurable impact. Building the financial, technical, and governance capacities to manage these resources is key to turning commitments into real resilience for Pakistan.'
The 3rd PCC Report outlines actionable pathways in regenerative agriculture, industrial decarbonisation, plastic circularity, and carbon market development. It emphasises that climate funding must be paired with enabling policies and capacity-building to close Pakistan's climate financing gap.
The OICCI, as the only private sector representative from Pakistan at COP28 and COP29, continues to champion public-private partnerships for climate action.
The organisation has engaged with regulators, including the State Bank of Pakistan and the SECP, to advance green taxonomies and ESG reporting frameworks.
Copyright Business Recorder, 2025
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