Pakistan is losing nearly 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 called for a faster transition 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.
Federal Minister for Climate Change and Environmental Coordination Dr Musadik Masood Malik said Pakistan is on the frontline of an intensifying climate crisis. He praised OICCI for positioning climate resilience as an economic necessity rather than a corporate social responsibility issue. Referring to record 53°C heatwaves, floods that displaced four million people last year, more than 13,000 melting glaciers, and annual climate losses approaching one percent of GDP, he described climate change as an existential challenge.
Dr Malik noted that Pakistan’s updated Nationally Determined Contributions (NDC) 3.0 target a 50 percent reduction in emissions by 2035. However, he said achieving a just transition would require $565.7 billion in investment, calling for climate finance that is sustainable, grant-based, and grounded in climate justice.
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb also described climate change as an existential threat. While highlighting that key frameworks such as the National Adaptation Plan, Climate Prosperity Plan, and Green Taxonomy are already in place, he stressed that the focus must now shift toward mobilising financing and developing investable projects. He underscored the private sector’s role in providing capital, innovation, and technical expertise.
Chongguang Yu (Charles), Regional Lead for Sustainable Finance for Asia and the Pacific at the United Nations Development Programme (UNDP), said the core challenge was no longer a lack of capital but fragmented systems. He called for blended finance, risk-sharing mechanisms, and programmatic investment pipelines to unlock scalable private-sector participation.
OICCI President Yousaf Hussain said the government is making tangible progress on its climate agenda. He pointed to initiatives such as emphasising adaptation finance through public–private partnerships at the World Economic Forum in Davos, finalising the $20 billion, 10-year Country Partnership Framework with the World Bank, and preparations to launch Pakistan’s first Green Panda Bond. These steps, he said, signal growing momentum in sustainable finance.
Senior Vice President OICCI Jason Avanceña said the conference aimed to move beyond rhetoric toward practical economic outcomes. Building on momentum from COP30, discussions focused on 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 resilience-building, sustainable finance mobilisation, and stronger public–private collaboration are critical to unlocking Pakistan’s long-term competitiveness. He added that supporting platforms like the OICCI Climate Conference helps turn climate intent into action.
The conference was attended by representatives from UNDP, the Asian Development Bank, the International Finance Corporation, WWF Pakistan, the State Bank of Pakistan, the Securities and Exchange Commission of Pakistan, the Pakistan Stock Exchange, EPA Punjab, Sindh Solid Waste Management Board, Sindh EPA, the Sustainable Development Policy Institute, and leading corporates including Unilever, Nestlé, Standard Chartered Bank, and Beko Global.
The event concluded with the second OICCI Climate Excellence Awards, recognising organisations advancing renewable energy, circularity, water stewardship, and inclusive climate action.
As climate risks continue to escalate, speakers agreed that climate policy can no longer sit at the margins and must now shape Pakistan’s economic planning, investment strategy, and national development agenda.
