Author Recent Posts Maheen Ishfaq Latest posts by Maheen Ishfaq (see all) Climate Change and Pakistan’s Economy – August 7, 2025
Climate change is not a distant threat but appears to be an immediate crisis reshaping our present. Economic factors in policy circles often revolve around GDP growth, IMF loans, trade deals, and foreign exchange reserves. But the word economy for an average Pakistani might be a bit different like a farmer in Badin, it is the unpredictability of rainfall. For a factory owner in Sialkot, the question is whether the next flood will shut down the whole market production. These are not abstract concerns; they are daily struggles deeply rooted in economic realities. While climate change is not merely an environmental issue, it is a serious economic issue that must be considered when planning Pakistan’s future development. The floods and other such climate issues are affecting people and the economy badly just like the 2022 and 2025 floods. Despite their crucial role in contributing 24 % to Pakistan’s GDP, farmers are increasingly disheartened by the growing impact of climate-related challenges.
Our futures are easily drowning away in floods just like 2022, it just doesn’t wash away homes. These floods were a wake-up call for everyone as nearly half a third of the country was submerged. According to the Post Disaster Needs Assessments conducted jointly by the Government of Pakistan which include partners like the UN and the World Bank, over 33 million people were affected, and the damage exceeds 30 billion US dollars, many of whom were already vulnerable. These 2022 floods were a warning for future policies regarding climate change. But beyond these statistics lies a more painful human reality, the farmer in Dadu who lost his entire harvest, the teacher in Khairpur whose home was shattered to pieces over a night, and the shopkeeper in Jaffar Abad whose business never reopened. All these individuals are not just the casualties of climate change; they are the victims of an economic crisis fueled by a changing climate.
Pakistan’s economic fabric faces daily disruption from the constant change in climate conditions. Our economy has around 37 % of the labor force and contributes to almost one-fifth of the GDP. Agriculture and these laborers don’t operate in a vacuum environment; it’s influenced by the seasons and weather patterns. And since these seasons have become increasingly unpredictable, so have the GDP growth and production of crops. Unexpected hailstorms, late monsoons, droughts are not just bad for farmers, but they have a broad impact. Since all the industries are interconnected, when the crop fails, food prices increase, exports fall, inflation rises, and the economic burden climbs especially on those having low-income households. What seems like just a “bad weather” ends up affecting livelihoods across multiple sectors.
Even in urban centers like Karachi, Lahore, and Faisalabad where people assume that the effects are minimal, the economy is quietly being destroyed. Increase in medical costs in Lahore due to closure of schools for having smog as a reason which is seen in health crises. Karachi, which is called the city of lights, faces urban flooding leading to electricity shortage and blackouts, and closure of markets and offices. Transportation was cut off which led to heavy traffic and other road issues. Adding to this, the capital also faces the same consequences due to heavy rain in industrial areas leading to blackouts and shortage of power supply. The ones who suffer the most are the small business operators, such as vendors who can’t operate, delivery riders lose income and factory workers are also sent home. Perhaps the cruelest irony is that the weak suffer the most although they contribute the least in this system and still the system is so harsh.
Pakistan has made some work on paper but if, we talk about implementation it is either too slow or pace of actions on the ground still requires speedy efforts. The Government started projects like the Billion Tree Tsunami project, adopting the Pakistan Climate Change Act 2017, and coordination between provincial and federal authorities is weak and so that the allocation for climate related effects causes remains insufficient. Pakistan is ranked among the top 10 most vulnerable countries, by the Global Climate Risk Index by German watch despite contributing less than 1 % to global greenhouse gas emissions.
This shows how the future wants us to work and how Pakistan is preparing for it by being completely disconnected from vulnerability and preparedness. Shifting fossil fuels to renewable energy, expanding early warning systems, smart technology-based agriculture techniques can help Pakistan to win against climate-changing patterns. Internationally, not just through loss and damage climate funds, Pakistan must work hard for climate justice and needs to work on financing for future climate disasters. The aid we are getting today can be lost anytime, so relying completely on external aid is not sustainable. Pakistan must work today to see the results after years.
Pakistan needs to push itself for better climate policies and not to take it as a side issue, because the cost will be too heavy on the future generations. Experts predicted that climate threats and disasters will push 2 million more people into poverty every year. And as far as agriculture sector is concerned, productivity may drop by 8-10% by 2040, while heatwaves are continuously making the places like Sindh and South Punjab unlivable at times. Food insecurity, water scarcity, forced migration and rising health issues will become daily realities not distant issues. The time demands the comprehensive and inclusive demand for strategies, or we will lose the remaining beautiful northern side of Pakistan as well.
- Climate Change and Pakistan’s Economy - August 7, 2025




















3 Comments
Maryam shahid
August 7, 2025, 2:38 pmThe article reflects in-depth knowledge and command over the subject matter.
REPLYHamza Ishfaq
August 7, 2025, 8:48 pmThis blog powerfully highlights how climate change is not just an environmental issue but a deep economic crisis affecting everyday lives in Pakistan. Urgent, inclusive action is needed now.
REPLYsumeiya
August 8, 2025, 12:36 amExamples provided make it so easy to understand for anyone. Simple and well written with facts.
REPLY