ISLAMABAD: Natural disasters cost Pakistan an estimated 1–2 percent of its gross domestic product each year, the UN Office for the Coordination of Humanitarian Affairs (OCHA) said this week, warning that conflict, militancy and the country’s role as a major refugee host are compounding the strain on its economy and public services.

Pakistan, one of the world’s largest refugee-hosting nations, has faced decades of economic and social pressure linked to displacement from neighboring Afghanistan, ongoing militancy in border regions, and repeated climate-related disasters. Agriculture, which employs over a third of the workforce, is particularly exposed, with climate-linked disruptions threatening food security and rural livelihoods.

“The economic toll of these vulnerabilities is significant, with natural disasters estimated to cost Pakistan 1–2 percent of its GDP each year,” OCHA said in its latest assessment.

The agency noted that agriculture contributes 19 percent of the economy, yet faces severe losses during floods, droughts and other climate shocks. These factors, it said, deepen rural poverty, widen inequality and slow development, particularly in underserved areas.

Public resources intended for education, health care and infrastructure are often reallocated to crisis management, “resulting in developmental lags and unmet social needs,” OCHA said, calling for disaster risk reduction, stronger early warning systems and investment in community-level resilience.

In 2022, catastrophic monsoon flooding killed around 1,739 people and inflicted approximately $30 billion in damages, one of the world’s costliest climate disasters. 

Since late June this year, more than 300 people have been killed due to flash floods, landslides, and rain‑related incidents in different parts of Pakistan. The World Weather Attribution study found these floods were 10–15 percent more intense due to human-induced climate change.

Glacial lake outbursts and flash floods in mountainous regions, including Gilgit‑Baltistan and Swat Valley, have also produced devastating landslides and casualties. Climate-fueled glacier melt and intensified monsoon rains are to blame, experts say.