Pakistan Incurs $4 Billion Loss Every Year Due to Climate Change

Pakistan loses an estimated $4 billion per year due to climate change-induced events. This was determined in a report by Transparency International Pakistan (TIP) highlighting the financial toll that climate change is taking on the country. The report evaluated the current frameworks governing climate action in Pakistan. It emphasized Pakistan’s vulnerability to climate change and the necessity for adequate financing for commitments under nationally determined contributions (NDC). The report noted that while Pakistan is among the top ten countries most affected by climate change, it does not rank among the top recipients of climate finance. Key recommendations from Transparency International Pakistan included the operationalization and empowerment of climate change institutions established under the Climate Change Act 2017, involving public and expert participation, integrating transparency and climate perspectives into project designs, capacity building for auditing and reporting institutions, and ensuring compliance with transparency laws. The report also highlighted the need to bridge the policy gap between national and provincial climate policies, increase climate budget allocations, establish an open database on climate finance, and enhance climate governance integrity using global best practices. TIP underscored an urgent need for strengthened climate governance in Pakistan to effectively address the challenges posed by climate change and mitigate its adverse impacts on the country’s economy and environment.