Pakistan’s catastrophic floods lead to renewed calls for reparations 

Flood-affected people gather by an embankment in Mehar city after heavy monsoon rains in Dadu district, Sindh province on September 9, 2022. (AFP)
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Updated 25 September 2022
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Pakistan’s catastrophic floods lead to renewed calls for reparations 

  • Climate activists have been asking rich polluting nations to compensate developing countries after the climate disaster 
  • Green groups also call for debt cancelation for cash-strapped nations that spend budgets servicing external loans 

NEW YORK: Pakistan’s catastrophic floods have led to renewed calls for rich polluting nations, which grew their economies through heavy use of fossil fuels, to compensate developing countries for the devastating impacts caused by the climate crisis. 

The currently favored term for this concept is “loss and damage” payments, but some campaigners want to go further and frame the issue as “climate reparations,” just as racial justice activists call for compensation for the descendants of enslaved people. 

Beyond the tougher vocabulary, green groups also call for debt cancelation for cash-strapped nations that spend huge portions of their budgets servicing external loans, rather than devoting the funds to increasing resilience to a rapidly changing planet. 

“There’s a historical precedent of not just the industrial revolution that led to increased emissions and carbon pollution, but also the history of colonialism and the history of extraction of resources, wealth and labor,” Belgium-based climate activist Meera Ghani told AFP. 

“The climate crisis is a manifestation of interlocking systems of oppression, and it’s a form of colonialism,” said Ghani, a former climate negotiator for Pakistan. 

Such ideas stretch back decades and were first pushed by small island nations susceptible to rising sea levels — but momentum is once more building on the back of this summer’s catastrophic inundations in Pakistan, driven by unprecedented monsoon rains. 

Nearly 1,600 were killed, several million displaced, and the cash-strapped government estimates losses in the region of $30 billion. 

Campaigners point to the fact that the most climate-vulnerable countries in the Global South are least responsible — Pakistan, for instance, produces less than one percent of global greenhouse emissions, as opposed to the G20 countries which account for 80 percent. 

The international climate response currently involves a two-pronged approach: “mitigation” — which means reducing heat-trapping greenhouse gases — and “adaptation,” which means steps to alter systems and improve infrastructure for changes that are already locked in. 

Calls for “loss and damage” payments go further than adaptation financing, and seek compensation for multiplying severe weather impacts that countries cannot withstand. 

At present, however, even the more modest goal of adaptation financing is languishing. 

Advanced economies agreed to channel $100 billion to less developed countries by the year 2020 — a promise that was broken — even as much of the funding that was mobilized came in the form of loans. 

“Our starting point is that the global North is largely responsible for the state of our planet today,” said Maira Hayat, an assistant professor of environment and peace studies at the University of Notre Dame in Indiana. 

“Why should countries that have contributed little by way of GHG emissions be asking them for aid — loans are the predominant form — with onerous repayment conditions?” 

“If the language is upsetting for some, the next step should be to probe why that might be — do they dispute the history? Or the present-day implications of accepting certain historical pasts?” 

Not all in the climate arena are convinced. 

“Beyond a certain rhetorical point-scoring that’s not going to go anywhere,” said Daanish Mustafa, professor in critical geography at King’s College London. 

While he mostly blames the Global North for the world’s current predicament, he says he is wary of pushing a narrative that may excuse the actions of the Pakistani leadership and policy choices they have taken that exacerbate this and other disasters. 

The World Weather Attribution group of climate scientists found that climate change likely contributed to the floods. 

But the devastating impacts were also driven “by the proximity of human settlements, infrastructure (homes, buildings, bridges) and agricultural land to flood plains,” among other locally driven factors, they said. 

Pakistan’s own emissions, while low at the global scale, are fast rising — with the benefits flowing to a tiny elite, said Mustafa, and the country should pursue an alternative, low-carbon development path rather than “aping the West” and damaging itself in the process. 

The case for “loss and damage” payments received a recent boost with UN chief Antonio Guterres calling for “meaningful action” on it at the next global climate summit, COP27 in Egypt in November. 

But the issue is sensitive for rich countries — especially the United States, the largest emitter of GHGs historically — which fear it could pave the way for legal action and kept language regarding “liability and compensation” out of the landmark Paris agreement. 


Pakistan reports current account surplus in Jan. owing to improved trade, remittances

Updated 17 February 2026
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Pakistan reports current account surplus in Jan. owing to improved trade, remittances

  • Pakistan’s exports crossed the $3 billion mark in Jan. as the country received $3.5 billion in remittances
  • Last month, IMF urged Pakistan to accelerate pace of structural reforms to strengthen economic growth

ISLAMABAD: Pakistan recorded a current account surplus of more than $120 million in January, the country’s finance adviser said on Tuesday, attributing it to improved trade balance and remittance inflows.

Pakistan’s exports rebounded in January 2026 after five months of weak performance, rising 3.73 percent year on year and surging 34.96 percent month on month, according to data released by the country’s statistics bureau.

Exports crossed the $3 billion mark for the first time in January to reach $3.061 billion, compared to $2.27 billion in Dec. 2025. The country received $3.5 billion in foreign remittances in Jan. 2026.

Khurram Schehzad, an adviser to the finance minister, said Pakistan reported a current account surplus of $121 million in Jan., compared to a current account deficit of $393 million in the same month last year.

“Improved trade balance in January 2026, strong remittance inflows, and sustained momentum in services exports (IT/Tech) continue to reinforce the country’s external account position,” he said on X.

Pakistan has undergone a difficult period of stabilization, marked by inflation, currency depreciation and financing gaps, and international rating agencies have acknowledged improvements after Islamabad began implementing reforms such as privatizing loss-making, state-owned enterprises (SOEs) and ending subsidies as part of a $7 billion International Monetary Fund (IMF) loan program.

Late last month, the IMF urged Pakistan to accelerate the pace of these structural reforms to strengthen economic growth.

Responding to questions from Arab News at a virtual media roundtable on emerging markets’ resilience, IMF’s director of the Middle East and Central Asia Jihad Azour said Islamabad’s implementation of the IMF requirements had been “strong” despite devastating floods that killed more than 1,000 people and devastated farmland, forcing the government to revise its 4.2 percent growth target to 3.9 percent.

“What is important going forward in order to strengthen growth and to maintain the level of macroeconomic stability is to accelerate the structural reforms,” he said at the meeting.

Azour underlined Pakistan’s plans to privatize some of the SOEs and improve financial management of important public entities, particularly power companies, as an important way for the country to boost its capacity to cater to the economy for additional exports.

“This comes in addition to the effort that the authorities have made in order to reform their tariffs, which will allow the private sector of Pakistan to become more competitive,” the IMF official said.