Natural disasters cost Pakistan up to 2 percent of GDP annually, UN says

Rescuers and people look as a crane removes the wreckage of a van from a drainage after heavy monsoon rains in Islamabad on July 21, 2025. (AFP/ File)
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Updated 12 August 2025
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Natural disasters cost Pakistan up to 2 percent of GDP annually, UN says

  • Agriculture sector and refugee-hosting burden among key vulnerabilities identified
  • OCHA links refugee influx, militancy, weak governance to mounting economic strain

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. 


UAE, Pakistan launch new feeder service to strengthen maritime connectivity

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UAE, Pakistan launch new feeder service to strengthen maritime connectivity

  • The new service establishes a regular shipping link between Karachi and the UAE ports of Fujairah and Khor Fakkan
  • It will support supply chain continuity and help ensure Pakistan’s trade maintains dependable access to global markets

KARACHI: Pakistan and Emirati authorities have launched a new feeder service linking Karachi with the UAE ports of Fujairah and Khor Fakkan to strengthen maritime connectivity, the Karachi Port Trust (KPT) announced on Thursday.

The UAE is Pakistan’s third-largest trading partner, after China and the United States. Policymakers in Pakistan consider the UAE an optimal export destination due to its geographical proximity, which minimizes transportation and freight costs

The new service establishes a regular shipping link between Karachi and two of the region’s key transshipment hubs, enabling Pakistani importers and exporters to maintain reliable access to global container shipping networks.

The service will call at the Karachi Gateway Terminal Limited (KGTL), part of AD Ports Group’s international operating arm, Noatum Ports. The first vessel of the service arrived at KGTL on the evening of 11 March, officially marking the start of regular operations.

“The introduction of this feeder service further enhances Karachi Port’s connectivity with key regional hubs and supports Pakistan’s growing trade requirements,” KPT Chairman Rear Admiral (Retd.) Shahid Ahmed said in a statement.

“Strengthening maritime links with the UAE will help facilitate smoother cargo movement while providing greater flexibility for the country’s trading community as per the vision of honorable Minister for Maritime Affairs Mr.Junaid Anwar Choudhry.”

Pakistan’s economy relies heavily on maritime trade, and strengthened connectivity with regional transshipment hubs provides additional resilience for exporters, importers and supply chains. The new feeder link supports supply chain continuity through KGTL and helps ensure Pakistan’s trade maintains dependable access to international markets, according to KPT.

Cargo routed through Fujairah and Khor Fakkan will benefit from seamless connectivity to regional and international shipping networks, supported by the UAE’s advanced logistics infrastructure. Containers can be efficiently transferred via integrated road and rail corridors to major commercial hubs and logistics centers across the UAE.

“The commencement of this feeder service reflects KGTL’s continued commitment to strengthening Pakistan’s maritime connectivity and supporting the country’s trading community,” said KGTL Chief Executive Officer Khurram Aziz Khan.

“By linking Karachi directly with major UAE transshipment hubs, this service provides importers and exporters with reliable access to global shipping networks while reinforcing the role of Karachi Gateway Terminal as a key gateway for international trade.”