Finance Minister Calls Climate Change an “Existential Threat” to Economic Sustainability

Finance Minister Muhammad Aurangzeb emphasized on Friday that climate change poses an “existential threat” that could jeopardize the government’s economic sustainability goals. He made these remarks during a high-level event organized by the Ministry of Climate Change and Environmental Coordination to commemorate World Day of Glaciers. Aurangzeb highlighted the government’s ongoing efforts to turn around the economy through structural reforms, stating, “These are the right things to do, and our economy will be in a very good place.” He noted that while the country’s economy has achieved macroeconomic stability, failure to address climate change could hinder sustainable economic growth. Pakistan ranks among the top 10 most vulnerable countries to climate change, despite contributing less than 1% to global greenhouse gas emissions. The economic survey of Pakistan for 2024-25 outlines the destructive effects of climate change, including unpredictable weather patterns that lead to flash floods, droughts, glacial lake outbursts, intense heat waves, and erratic rainfall. During his address, Aurangzeb mentioned the Nationally Determined Contributions (NDCs) and the National Adaptation Plan, stating that significant building blocks for climate action are already in place. However, he acknowledged a “yawning gap” in climate finance for Pakistan, stressing the need for further efforts to fulfill this financing gap. He praised the World Bank Group for its 10-year Country Partnership Framework, which includes two out of six focal points dedicated to climate change. Aurangzeb also pointed out that Pakistan is home to over 3,000 glacial lakes, 33 of which are highly volatile and pose a grave danger to at least 7 million people. “These are alarming statistics,” he concluded, underscoring the urgent need for action to combat climate change and protect the nation’s economic future.