Pakistani farmers seek €1 million in climate damages from German firms

A man carries a sack of fodder on his head as he walks along a flooded road, following monsoon rains and rising water levels of the Chenab River, in Patraki village, Chiniot district, Punjab province, Pakistan, August 30, 2025. (Reuters/File)
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Updated 01 November 2025
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Pakistani farmers seek €1 million in climate damages from German firms

  • The notices represent one of the first attempts by agriculturalists in Pakistan to hold major international carbon-emitting firms accountable
  • Pakistan ranks among countries most vulnerable to climate change, despite contributing less than 1 percent of global greenhouse gas emissions

KARACHI: At least 43 farmers from Pakistan’s southern Sindh province have issued formal legal notices to German energy giant RWE and cement-producer Heidelberg Materials, claiming €1 million in compensation for losses suffered during catastrophic floods in 2022, trade union officials said on Saturday.

The notices, dispatched on Oct. 28 and serving as a precursor to legal action planned for Dec. unless a settlement is reached, represent one of the first attempts by agriculturalists in Pakistan to hold major international carbon-emitting firms accountable for climate-driven damage.

Pakistan ranks among countries most vulnerable to climate change, despite contributing less than 1 percent of global greenhouse gas emissions. In 2022, the country witnessed deadly floods that killed over 1,700 people, displaced another 33 million and caused more than 30 billion losses.

Pakistani officials have said that they had to take loans to rebuild areas devastated by adverse weather phenomena, lamenting a lack of cooperation by heavily industrialized, developed nations which they say have exacerbated the climate crisis in the world.

“The farmers from Sindh have sent a legal notice to RWE and Heidelberg to pay fair share of compensation of what we estimate as €1 million in damages,” said Nasir Mansoor, general secretary of the National Trade Union Federation (NTUF) in Pakistan.

The farmers are based in Jacobabad, Dadu and Larkana districts of Sindh, a region among the hardest hit in the 2022 floods.

Speaking at a press conference this week, farmers, civil-society representatives and their legal counsel outlined the basis of their €1 million claim, saying RWE and Heidelberg Materials had been significant contributors to human-induced climate change.

“RWE and Heidelberg have known for decades that their polluting practices would bring harm to people, yet they have refused to act,” Clara Gonzales of the Berlin-based European Center for Constitutional and Human Rights (ECCHR) addressed press conference.

The NTUF and local non-government organization HANDS Welfare Foundation, which have worked with Sindh farmers since 2010, as well as the Berlin-based European Center for Constitutional and Human Rights (ECCHR) are backing the claimants, emphasizing that legal action marks an emerging front in global climate-justice litigation.

Neither RWE nor Heidelberg Materials responded to Arab News’ requests for comment by the time of this story’s publication. RWE is one of Europe’s largest electricity producers, while Heidelberg Materials is a leading cement manufacturer globally, both identified in “carbon majors” studies as significant historical emitters.

“Ten years after the Paris Agreement, the political disaster has turned into a climate disaster,” said Karin Zennig, a climate-justice campaigner at the Medico International aid agency.

“Entire regions of the world are still experiencing substantial destruction to their livelihoods. Those least responsible for the climate crisis are struggling to survive, as we can see in Pakistan.”

‘DREAMS WENT UNDER WITH THE WATER’

Inayat Laghari, one of the claimants who is a farmer in Khairpur Nathan Shah, said his entire 12-acre rice crop was destroyed in the 2022 floods, followed by a failed wheat harvest.

“It wasn’t just a crop that was lost; it was our children’s needs, their dreams, and our livelihood for the whole year that went under with the water,” he said.

A father of eight children, including three daughters, Laghari also lost multiple cows and goats to the catastrophic deluges.

“My cousin, Asyia, couldn’t cope with her loss, she passed away from the shock,” he said, recalling the toll the disaster took on his extended family.

“The foundations of the climate crisis that caused this catastrophe were laid by big corporations. They should be the ones to compensate us for our losses.”

The legal notice sent to RWE and Heidelberg Materials seeks acknowledgment of liability and payment of what the claimants describe as their “fair share” of damages. Lawyers acting for the farmers estimate the total damages at about €1 million and say the December timeline will see the case filed in court if no settlement is reached.

Ghulam Ullah from the village of Deed Sharif in Dadu is among the landowners who suffered losses and is now one of the claimants. A father of four sons and four daughters, he had cultivated rice on 24 acres, cotton on 12 acres, and chili on 2 acres, all of which were not only destroyed in the floods but also could not be replanted the following year. He also suffered heavy losses of livestock.

“The floods took everything from us,” he told Arab News. “It is our right that we be compensated for our losses.”


IMF board approves $1.3 billion disbursement for Pakistan after completing loan reviews

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IMF board approves $1.3 billion disbursement for Pakistan after completing loan reviews

  • The approval comes after an October staff-level deal that awaited the board’s formal endorsement
  • Economists say the money will boost Pakistan’s forex reserves, send positive signals to investors

KARACHI: The International Monetary Fund’s (IMF) executive board approved the release of $1.3 billion for Pakistan under two of its loan facilities, the Pakistani state media reported on Monday.

The board meeting was scheduled to take place during the day to decide on the Fund’s second review under the $7 billion Extended Fund Facility (EFF) and first review under the $1.4 billion Resilience and Sustainability Facility (RSF), a financing tool that provides long-term, low-cost loans to help countries address climate risks.

“The IMF executive board meeting has approved the third tranche of the loan program amounting to $1.3 billion,” the state-owned Pakistan Television reported.

It described the development as a major boost for Pakistan’s economy.

The IMF executive board’s meeting came nearly two months after a staff-level agreement (SLA) was signed between the two sides in October.

Procedurally, the SLAs are subject to approval by the executive board, though it is largely viewed as a formality.

A senior finance ministry official also confirmed to Arab News on condition of anonymity that the IMF had approved the tranche.

Economic experts said earlier in the day that the IMF disbursements would help Pakistan strengthen its balance of payments position.

Samiullah Tariq, group head of research at Pakistan Kuwait Investment Company Limited, said the IMF board’s approval would be an indication that Pakistan’s economy is on the right path.

“It obviously will help strengthen [the country’s] external sector, the balance of payments,” he told Arab News.

Until recently, Pakistan grappled with a macroeconomic crisis that drained its financial resources and triggered a balance of payments crisis.

However, the country witnessed financial gains in the last two years, recording current account surpluses and taming inflation that touched unprecedented levels in mid-2023.

Economists also viewed the IMF’s bailout packages as crucial for cash-strapped Pakistan, which has relied heavily on financing from bilateral partners such as Saudi Arabia, China and the United Arab Emirates, as well as multilateral lenders.

Saudi Arabia, through the Saudi Fund for Development, last week extended the term of its $3 billion deposit for another year to help Pakistan boost its foreign exchange reserves, which stood at $14.5 billion as of November 28, according to State Bank of Pakistan statements.

“In our view this [IMF tranche] will be approved,” said Shankar Talreja, head of research at Karachi-based brokerage Topline Securities Limited.

“This will help strengthen reserves and will eventually help a rating upgrade going forward,” he said.

The IMF board’s nod, Talreja said, would also send a signal to international and local investors regarding the continuation of the reform agenda by Pakistan’s government.