Climate-related disasters caused an estimated Rs. 822 billion in losses and damages across Pakistan in 2025, according to the Pakistan Economic Survey 2025-26.
The survey states that floods killed more than 1,039 people and displaced over four million residents across all four provinces and Azad Jammu and Kashmir.
The report identifies climate change as one of the country’s biggest economic risks, with agriculture, infrastructure, housing, and public services suffering extensive damage from flooding.
Pakistan also experienced its second-warmest year in the last 65 years during 2025. Average temperatures reached 23.9°C, while rainfall patterns remained below long-term averages, highlighting increasing climate volatility.
According to the survey, recurring extreme weather events are placing growing pressure on public finances, disrupting economic activity, and increasing the cost of recovery and reconstruction.
In response, the government has expanded climate resilience efforts through initiatives such as the Pakistan Climate Prosperity Plan, Green Taxonomy framework, Monsoon 2026 Strategic Plan, and various climate-financing programs.
Pakistan also secured funding under the IMF’s Resilience and Sustainability Facility and introduced measures including carbon levies and climate-risk management frameworks.
The survey notes that although Pakistan contributes less than 1 percent of global greenhouse gas emissions, it remains among the countries most vulnerable to climate-related disasters.
Climate resilience has become a core economic priority, with future investment in adaptation, disaster preparedness, and climate-resilient infrastructure seen as critical to limiting future losses and protecting livelihoods.