Pakistan Loses 1% GDP Annually to Climate Damage: OICCI Conference

Pakistan is losing close to one percent of its gross domestic product (GDP) each year due to climate-related damages, speakers revealed on Monday at the 4th Pakistan Climate Conference, as government leaders, development partners, and business executives urged an accelerated shift from policy frameworks to bankable climate action.

Organised by the Overseas Investors Chamber of Commerce and Industry (OICCI), the conference brought together federal and provincial policymakers, international institutions, climate experts, journalists, and corporate leaders to discuss Pakistan’s growing exposure to floods, heatwaves, and economic disruption, despite the country contributing less than one percent to global greenhouse gas emissions.

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Federal Minister for Climate Change and Environmental Coordination Dr Musadik Masood Malik said Pakistan was on the frontline of a rapidly intensifying climate crisis. He commended OICCI for creating a platform where climate resilience is treated not as corporate social responsibility, but as an economic imperative. Citing record 53°C heatwaves, floods that displaced four million people last year, more than 13,000 melting glaciers, and annual climate losses nearing one percent of GDP, he described climate change as an existential challenge for the country.

Referring to Pakistan’s updated climate commitments, Dr Malik said the country’s Nationally Determined Contributions (NDC) 3.0 target a 50 percent reduction in emissions by 2035. However, he noted that achieving a just transition would require investment of $565.7 billion, calling for climate finance that is sustainable, grant-based, and rooted in climate justice.

Addressing participants, Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb described climate change as an existential threat. While noting that key frameworks — including the National Adaptation Plan, Climate Prosperity Plan, and Green Taxonomy — are already in place, he stressed that the focus must now shift towards mobilising available financing and developing investable projects. He highlighted the private sector’s role in providing not only capital, but also innovation and technical expertise.

Speaking at the conference, Chongguang Yu (Charles), Regional Lead for Sustainable Finance, Asia and Pacific at the United Nations Development Program (UNDP), said the core challenge was no longer the availability of capital but fragmented systems. He advocated blended finance, risk-sharing mechanisms, and programmatic investment pipelines to unlock scalable private-sector participation.

OICCI President Yousaf Hussain said the government was making tangible progress on its climate agenda. He noted that initiatives ranging from emphasising adaptation finance through public–private partnerships at the World Economic Forum in Davos to finalising the $20 billion, 10-year Country Partnership Framework with the World Bank, and preparations for launching Pakistan’s first Green Panda Bond, reflected growing momentum in sustainable finance. He said these steps signalled a clear and credible national commitment to climate resilience.

Senior Vice President OICCI Jason Avanceña said the conference was designed to move beyond rhetoric towards practical economic outcomes. Building on momentum from COP30, he said discussions focused on translating climate commitments into results, including modernising Pakistan’s strained power grid, accelerating renewable energy adoption, unlocking Blue Economy opportunities through coastal resilience and marine sustainability, and leveraging artificial intelligence to improve climate forecasting, reduce disaster losses, and strengthen investment planning.

Rehan Shaikh, Chief Executive Officer and Head of Coverage at Standard Chartered Pakistan, said that building resilience, mobilising sustainable finance, and strengthening public–private collaboration are critical for unlocking Pakistan’s long-term competitiveness. He added that the bank’s support for platforms such as the OICCI Climate Conference helps move the climate agenda from intent to action.

The event was attended by local and international speakers from UNDP, the Asian Development Bank, the International Finance Corporation, World Wide Fund for Nature Pakistan, the State Bank of Pakistan, the Securities and Exchange Commission of Pakistan, the Pakistan Stock Exchange, the Environmental Protection Agency Punjab, the Sindh Solid Waste Management Board, the Sindh Environmental Protection Agency, the Sustainable Development Policy Institute, and leading corporates including Unilever, Nestlé, Standard Chartered Bank, and Beko Global.