Pakistan requires $40 billion to $50 billion each year to address rising climate threats, according to the Overseas Investors Chamber of Commerce and Industry’s (OICCI) 3rd Pakistan Climate Conference Report. The report warns that the country is already facing billions in damages, increasing health costs, and declining productivity.
Despite contributing less than 0.9% to global greenhouse gas emissions, Pakistan ranks first on the 2025 Climate Risk Index. In 2022, climate-related disasters caused over $30 billion in losses, with recovery needs exceeding $16.3 billion. Air pollution results in more than 128,000 premature deaths annually, while agricultural productivity has dropped 10–20% due to climate variability.
The report, titled Creating an Enabling Environment for Private Sector Participation in Climate Resilience, stresses the urgency of mobilising climate finance at scale, positioning the private sector as a key partner in resilience-building.
Speaking at the launch, Secretary of the Ministry of Climate Change and Environmental Coordination, Aisha Humera Chaudhry, said Pakistan must channel substantial and timely climate finance to local solutions, with the private sector playing a central role.
OICCI Secretary General M Abdul Aleem noted that Pakistan’s reliance on fossil fuels and carbon-intensive practices threatens exports under global frameworks like the EU Carbon Border Adjustment Mechanism, making decarbonisation and green finance essential for economic growth and competitiveness.
SDPI Executive Director Dr. Abid Suleri highlighted the importance of market-based solutions and private sector participation, arguing that climate crises are an immediate socioeconomic challenge requiring policy support, data transparency, and accessible financing instruments.
The 3rd PCC Report outlines actionable strategies in regenerative agriculture, industrial decarbonisation, plastic circularity, and carbon market development, emphasising that effective climate finance must be paired with supportive policies and capacity-building to bridge Pakistan’s climate funding gap.
