ISLAMABAD – Pakistan could lose up to 20 percent of its GDP by 2050 as a result of escalating climate change, recurrent floods, and worsening 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 World Bank official revealed that Pakistan has already suffered economic losses of $2.9 billion from recent floods, while the catastrophic 2022 floods caused damages worth $30 billion—underscoring the country’s ranking among the most climate-vulnerable nations globally.
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She cautioned that without immediate and coordinated climate action, Pakistan’s economy will continue to face severe shocks, undermining growth and long-term stability. The World Bank has pledged $20 billion under its Country Partnership Framework to bolster Pakistan’s climate resilience and sustainable development agenda. The program could extend over two decades if key structural reforms remain on track.
The Director urged both federal and provincial governments to strengthen environmental governance, prioritize green financing, and develop bankable climate projects to attract global investments.
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Highlighting the social consequences of environmental decline, she said: “Forty percent of Pakistani children suffer from malnutrition, while lack of clean water, air, food security, and education continues to hinder human development.”
IMF representative Maheer Benichi added that Pakistan’s macroeconomic fragility is being compounded by climate-related disasters. He confirmed that Pakistan will receive the first tranche of the Resilience and Sustainability Facility by December, while urging improvements in public financial management and transparency.
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Experts at the SDPI session stressed that Pakistan must invest between $8–10 billion annually in climate adaptation and disaster preparedness to avert future losses and ensure sustainable economic growth.