Pakistan needs $340 billion to meet climate, development challenges between 2023-2030 

Commuters wade through a flooded street after heavy monsoon rains in Jaffarabad district of Balochistan province on July 27, 2023. (AFP/File)
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Updated 02 November 2023
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Pakistan needs $340 billion to meet climate, development challenges between 2023-2030 

  • Currently, only $39 billion in public finance and $9 billion through public-private partnerships is expected for climate mitigation and adaptation efforts 
  • Pakistan is fifth most climate-vulnerable country, international donors in January committed over $9 billion to help Pakistan recover from 2022 floods

ISLAMABAD: Caretaker Finance Minister Dr. Shamshad Akhtar said on Wednesday Pakistan needed $340 billion to meet climate and development challenges until 2023, saying the South Asia nation was facing a trade-off between raising development finance and funds to combat climate change.

In August 2022, torrential monsoon rains triggered the most devastating floods in Pakistan’s history, killing around 1,700 people. Over 33 million people were affected by the floodwaters — a staggering number close to the population of Canada. Millions of homes, tens of thousands of schools as well as thousands of kilometers of roads and railways still need to be rebuilt.

Pakistan produces less than one percent of the world’s carbon footprint but, according to the Global Climate Risk Index, is currently the fifth most climate-vulnerable country in the world, having lost nearly ten thousand lives and suffering economic losses worth $3.8 billion due to climate change throughout the years 1999 to 2018.

Changing seasonal weather patterns, rising temperatures, variability of monsoons and melting of glaciers in the north — compounded with recurrent extreme weather events and natural disasters — are just some of the effects of climate change that Pakistan has been forced to contend with in recent years.

Speaking at the second Pakistan Climate Conference organized by the Overseas Investors Chamber of Commerce and Industry (OICCI), the finance minister said Pakistan needed $340 billion to address climate and development challenges between 2023 and 2030. The amount is equivalent to 10 percent of the cumulative GDP during the same period.

“I think we need to be conscious that getting money is a big issue that we face in addressing the climate agenda,” she said, highlighting that seeking money for climate finance undercut other development finance requirements.

The best recourse for Pakistan would be to use its “best of the best firms” to attract institutional investors’ financing for bridging gaps.

The total cost of implementing Pakistan’s nationally determined contribution (NDC), which is a self-defined national climate pledge under the Paris Agreement reflecting what Islamabad will do to help meet the global climate goals, is projected to be nearly $200 billion by 2030.

Currently, only $39 billion in public finance and $9 billion through public-private partnerships is expected for both climate mitigation and adaptation efforts over the coming decade, the finance minister added.

Pakistan has carried out a number of green finance initiatives such as the dollar-denominated green Eurobonds annou­nced by the Water and Power Development Authority (Wapda), Akhar said, adding that the government was planning to float “some of government securities” and different instruments, including Islamic finance and green finance issues, through the PSX.

“If we can remain on course, which is always a challenge given what’s going on within Pakistan, we should be able to bring at least one issue of Sukuk,” she said, adding that the issue will have a “green element” to it.

International donors in January committed over $9 billion to help Pakistan recover from the 2022 floods last year, exceeding its external financing goals and paving the way for a new model on raising funds to fight climate disasters in poorer countries.

Officials from some 40 countries as well as private donors and international financial institutions gathered at a meeting in Geneva as Islamabad sought funds to cover around half of a recovery bill amounting to $16.3 billion.


With monitors and lawsuits, Pakistanis fight for clean air

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With monitors and lawsuits, Pakistanis fight for clean air

  • Independent air monitors expose gaps in official pollution data
  • Pollution exposure linked to heavy health and economic costs

KARACHI: With pollution in Pakistan hitting record highs in recent years, citizens clutching air monitors and legal papers are taking the fight for clean air into their own hands.

More than a decade ago, engineer Abid Omar had a “sneaking suspicion” that what the government described as seasonal fog was actually a new phenomenon.

“It wasn’t there in my childhood” in Lahore, said the 45-year-old who now lives in coastal Karachi, where the sea breeze no longer saves residents from smog.

With no official data available at the time, Omar asked himself: “If the government is not fulfilling its mandate to monitor air pollution, why don’t I do that for myself?“

His association, the Pakistan Air Quality Initiative (PAQI), installed its first monitor in 2016 and now has around 150 nationwide.

The data feeds into the monitoring organization IQAir, which in 2024 classified Pakistan as the third most-polluted country in the world.

Levels of cancer-causing PM2.5 microparticles were on average 14 times the World Health Organization’s recommended daily maximum.

Schools are often shut for millions of children and hospitals fill up when the smog is at its worst, caused by a dangerous combination of poor-quality diesel, agricultural burning and winter weather.

PAQI data has already played a key role in the adoption of pollution policies, serving as evidence during a 2017 case at Lahore’s high court to have smog recognized as air pollution that is a danger to public health.

Using one of their air monitors, PAQI demonstrated that “the air quality was hazardous inside the courtroom,” Omar said.

The court then ordered the regional government of Punjab to deploy its own monitoring stations — now 44 across the province — and make the data public.

But the government also says private monitors are unreliable and cause panic.

Researchers say, however, that these devices are essential to supplement official data that they view as fragmented and insufficiently independent.

“They got alarmed and shut down some stations when the air pollution went up,” Omar said.

3D-PRINTED MONITORS
Officials have overhauled the management of brick kilns, a major source of black carbon emissions, and taken other measures such as fining drivers of high-emission vehicles and incentivizing farmers to stop agricultural burning.

Worried about their community in Islamabad, academics Umair Shahid and Taha Ali established the Curious Friends of Clean Air organization.

In three years, they have deployed a dozen plug-sized devices, made with a 3D printer at a cost of around $50 each, which clock air quality every three minutes.

Although they do not contribute to IQAir’s open-source map or have government certification, their readings have highlighted alarming trends and raised awareness among their neighbors.

An outdoor yoga exercise group began scheduling their practice “at times where the air quality is slightly better in the day,” said Shahid.

He has changed the times of family outings to minimize the exposure of his children, who are particularly vulnerable, to the morning and evening pollution peaks.

Their data has also been used to convince neighbors to buy air purifiers — which are prohibitively expensive for most Pakistanis — or to use masks that are rarely worn in the country.

’RIGHT TO BREATHE’
The records show air quality remains poor throughout the year, even when the pollution haze is not visible to the naked eye.

“The government is trying to control the symptoms, but not the origin,” said Ali.

Pollution exposure in Pakistan caused 230,000 premature deaths and illnesses in 2019, with health costs equivalent to nine percent of GDP, according to the World Bank.

Frustrated with what they see as government inaction, some citizens have taken the legal route.

Climate campaigner Hania Imran, 22, sued the state in December 2024 for the “right to breathe clean air.”

She is pushing the authorities to switch to cleaner fuel supplies, but no date has been set for a verdict and the outcome remains unclear.

“We need accessible public transport... we need to go toward sustainable development,” said Imran, who moved from Lahore to Islamabad in search of better air quality.

Pollution has multiple causes, she said, and “it’s actually our fault. We have to take accountability for it.”