Pakistan hit by nearly $15bn climate losses despite 1% emissions

Despite contributing only 0.9% to global greenhouse gas emissions, Pakistan is among the countries most vulnerable to climate change, suffering $14.9 billion in damages from the catastrophic 2022 floods, according to the Economic Survey 2024-25.

One-third of the country was submerged, impacting 33 million people and displacing nearly 8m.

The floods caused an estimated GDP loss of $15.2bn and created a $16.3bn rehabilitation need, underscoring the disproportionate burden faced by developing nations.

The report outlines how climate change, through rising temperatures and erratic rainfall, is intensifying flash floods, droughts, and glacial lake outbursts, while degrading ecosystems, depleting water resources, and threatening coastal zones.

Economic damage has concentrated in key sectors: housing ($5.6bn), agriculture and food ($3.7bn), and transport ($3.3bn).

Additionally, the 2010 floods had previously caused $6.5bn in direct damage and affected 20m people.

Pakistan has seen a 1°C temperature rise since the 1980s and anticipates up to 6°C by the 2090s.

Sea levels could rise by 30–80 cm by 2100, endangering Karachi and the Indus Delta.

Annual flood damage may increase by up to 49% by 2050, while labor productivity could decline by 10 percent due to heat stress.

To address the crisis, Pakistan has adopted the 4RF framework and committed to cutting projected emissions by 50% by 2030 under its Nationally Determined Contributions, contingent on international finance.

Initiatives such as the Living Indus, Recharge Pakistan, and GLOF Risk Reduction projects are underway, alongside efforts like the Clean Air Action Plan and Green Pakistan Programme.

The country aims to derive 60% of energy from renewables and transition 30 percent of vehicles to electric by 2030.

Provincial governments have also launched targeted interventions, including Punjab’s Clean Air Policy and Sindh’s climate finance initiatives.

Yet the Survey concludes that without global climate justice and substantial external funding, like the $101bn needed for Pakistan’s energy transition, these efforts alone will be insufficient.