ISLAMABAD: Pakistan faces the grave risk of losing nearly 20 percent of its GDP by 2050 due to the combined impacts of climate change, floods, and air pollution, the World Bank Country Director warned during a session organized by the Sustainable Development Policy Institute (SDPI) on “Sustainable Development in an Emerging World.”
The official said Pakistan has already suffered economic losses of $2.9 billion from recent floods, while the 2022 floods caused damages worth $30 billion, making the country one of the most climate-vulnerable in the world. She cautioned that without urgent climate action, economic shocks will continue to erode growth and stability.
The World Bank has pledged $20 billion under its Country Partnership Framework to support Pakistan’s climate resilience and development agenda, which could be extended for two decades if reforms remain on track. The Director urged federal and provincial governments to adopt strong environmental policies, prioritize green financing, and develop bankable projects to attract global climate investments.
Highlighting the human cost of environmental decline, she said 40 percent of Pakistani children suffer from malnutrition, while lack of clean water, clean air, food security, and education continues to impede human development.
IMF representative Maheer Benichi added that Pakistan’s macroeconomic challenges are being intensified by climate-related disasters. He confirmed that Pakistan will receive the first tranche of the Resilience and Sustainability Facility by December, urging stronger public finance management and greater transparency.
Experts at the SDPI session emphasized that Pakistan must invest $8–10 billion annually in climate adaptation and disaster preparedness to avert further losses and secure long-term sustainable growth.
