ISLAMABAD: Pakistan will require an estimated $348 billion in investments between 2023 and 2030 to address its climate change challenges, the World Bank has reported. The urgent call for a comprehensive climate financing strategy comes as the country grapples with growing environmental risks and disasters.
Ranked as the fifth most climate-vulnerable nation globally, Pakistan also faces severe disaster risks, sitting at 23rd on the 2024 Inform Risk Index, which measures disaster vulnerability across 194 countries.
In 2022, devastating floods affected 33 million people and displaced 8 million, causing damages totaling Rs 3.2 trillion (approximately $14.9 billion), equivalent to 4.8% of the nation’s GDP for that year.
The World Bank’s 2022 report outlines the total investment needed to tackle Pakistan’s climate and development issues at around $348 billion, or 10.7% of the nation’s cumulative GDP from 2023 to 2030. This amount includes $152 billion for climate adaptation and resilience, and $196 billion for deep decarbonization efforts.
While acknowledging that the projected figure is significant compared to Pakistan’s historical development budgets — which averaged around $11 billion annually between 2011 and 2015 — the World Bank noted that the actual investment need may be even higher. This is due to gaps in data regarding critical transformations, including the development of sustainable agriculture, flood risk management systems, and climate-resilient infrastructure.
Earlier, the World Bank committed to providing Pakistan with $20 billion over ten years under its Country Partnership Framework (CPF), aimed at supporting sustainable development and resilience. The framework prioritizes several areas, including enhancing child nutrition through improved access to clean water, combating learning poverty by improving education quality, and boosting the nation’s resilience to floods and other climate-induced disasters. Additionally, the CPF aims to increase fiscal capacity and promote inclusive investments to strengthen Pakistan’s economic stability.
