Climate Change in Pakistan: 7 Urgent Challenges and Powerful Solutions for a Resilient Future
Climate Change in Pakistan is no longer a distant threat—it is a harsh reality. Discover urgent challenges, private sector solutions, and policies needed to build resilience.
Climate Change in Pakistan is no longer a distant risk—it is our lived reality. From deadly floods to food insecurity, the impacts are immediate and devastating. The catastrophic 2022 floods wiped out nearly 5% of Pakistan’s GDP, claimed 1,700 lives, and displaced 8 million people.
Three years later, the monsoon of 2025 has again shattered lives: 660 deaths, 935 injuries, and more than 200 missing persons—with millions facing displacement. These disasters prove one thing: climate change is not waiting for us; it is here.
Lessons from the 2022 and 2025 Disasters
Pakistan’s back-to-back monsoon tragedies highlight the need for resilient infrastructure, disaster preparedness, and sustainable growth. While global temperatures rise, South Asia is experiencing record-breaking monsoon shifts that threaten agriculture, energy systems, and livelihoods.
Read more on Pakistan’s flood disasters.
The Paradox of Climate Vulnerability
Despite contributing less than 1% of global emissions, Pakistan ranks among the top 10 most climate-vulnerable countries. This paradox—where those least responsible are most affected—demands urgent global justice and collaboration.
Private Sector Leadership in Climate Action
The private sector, especially OICCI (Overseas Investors Chamber of Commerce & Industry) member companies, is proving that profitability and sustainability can go hand in hand:
- Carbon footprint reduction through renewable energy.
- Water and waste management systems to conserve resources.
- Resilient supply chains to withstand climate shocks.
These businesses are setting benchmarks by showing that sustainability is smart economics.
Government and Development Partners’ Initiatives
The government has launched ecosystem restoration projects such as:
- Delta Blue Carbon Project – planting mangroves to sequester carbon.
- Recharge Pakistan – enhancing water storage and reducing flood risks.
While promising, these projects remain limited in scale. Pakistan urgently needs deeper, faster, and more coordinated action.
Insights from OICCI’s 3rd Pakistan Climate Conference
The 3rd Pakistan Climate Conference (PCC) held in January 2025 identified:
- Policy and financing barriers slowing climate action.
- The need to shift from fragmented projects to long-term national strategies.
- A call for government–private sector–civil society collaboration around shared goals.
Explore the OICCI Climate Report.
The $50 Billion Climate Finance Gap
Pakistan faces an annual $40–50 billion financing gap to address climate needs. Bridging this gap requires:
- Green bonds, sukuks, ESG-linked loans.
- Transparent ESG reporting aligned with global standards.
- A centralized emissions and ESG data portal.
Without strong governance and credible reporting, climate finance will remain out of reach.
Renewable Energy Integration and Policy Reforms
The power sector remains Pakistan’s largest emitter. OICCI advocates for:
- Smart green grids and power wheeling regulations.
- Direct renewable energy procurement for industries.
- Rapid decarbonization to maintain EU export competitiveness under the Carbon Border Adjustment Mechanism (CBAM).
A clean energy shift can reduce costs, boost exports, and cut emissions.
Tackling Scope 3 Emissions and Supply Chain Gaps
Scope 3 emissions—often over 70% of a company’s carbon footprint—require:
- Collaboration across supply chains.
- Science-based targets.
- Transparent reporting aligned with IFRS S1/S2 standards.
Without tackling supply chain emissions, Pakistan’s corporate sustainability efforts will remain incomplete.
Innovation, Partnerships, and Public Engagement
Pakistan must expand public–private partnerships in:
- Disaster preparedness.
- Regenerative agriculture.
- Circular economy solutions.
- Community-based adaptation programs.
The Delta Blue Carbon project shows what is possible when trust, innovation, and partnerships converge.
Pakistan’s Global Voice: From COP30 to Future NDCs
As the world prepares for COP30 in Brazil, Pakistan must:
- Shift from a vulnerability narrative to investment opportunities.
- Position its Nationally Determined Contributions (NDCs) as climate investment maps.
- Leverage Islamic finance and disaster-resilience solutions for global partnerships.
By doing so, Pakistan can move from asking for aid to offering solutions.
Conclusion: Turning Climate Change in Pakistan into an Opportunity
The path to resilience cannot be walked alone. Climate change ignores boundaries—so must our response.
- Private sector → invest in sustainable practices, transparent reporting.
- Government → enable policies, reforms, and accountability.
- Development partners → align financing with long-term national priorities.
The stakes are immense: food and water security, energy systems, and the well-being of millions. Yet, with OICCI’s leadership, government action, and public awareness, the seeds of transformation are already planted.
Pakistan’s success will be measured not in reports, but in:
Resilient communities
Sustainable industries
A prosperous, climate-safe future
By acting boldly, collaborating deeply, and investing wisely, Pakistan can turn climate change from a threat into a powerful opportunity for generations to come.
