ISLAMABAD – Pakistan’s climate crisis is worsening, with the country ranked number one on the Climate Risk Index 2025 despite contributing less than 0.9% of global greenhouse gas emissions. In 2022 alone, climate disasters caused over USD 30 billion in damages, while recovery costs were estimated at USD 16.3 billion. Air pollution claims more than 128,000 lives annually, and agricultural yields have fallen 10–20% due to changing weather patterns.
The Overseas Investors Chamber of Commerce and Industry (OICCI) has warned that Pakistan now needs USD 40–50 billion every year to combat climate risks and adapt effectively. Launching its 3rd Pakistan Climate Conference (PCC) Report—“Creating an Enabling Environment for Private Sector Participation in Climate Resilience”—OICCI stressed the urgent need to mobilize large-scale climate finance and bring the private sector to the forefront of action.
At the launch event, Ministry of Climate Change and Environmental Coordination Secretary Aisha Humera Chaudhry said climate financing must be directed towards locally driven solutions, with international partners supporting Pakistan’s ambitions.
OICCI Secretary General M. Abdul Aleem warned that Pakistan’s export competitiveness is under threat from new trade rules like the EU’s Carbon Border Adjustment Mechanism, adding that decarbonization and green financing are essential for economic survival.
Dr. Abid Suleri from SDPI highlighted the need for market-based financing models, noting that climate catastrophes are already a present-day economic challenge. Ayla Majid, President of ACCA, stressed that managing climate funds requires transparency, measurable impact, and skilled financial governance.
The PCC Report outlines strategic focus areas—regenerative agriculture, industrial decarbonization, plastic circularity, and carbon market growth—calling for consistent policies, transparent data, and accessible financing to close Pakistan’s climate funding gap.
OICCI, Pakistan’s sole private sector voice at COP28 and COP29, has been engaging regulators including the State Bank of Pakistan and SECP to push forward green taxonomies and ESG frameworks, ensuring the private sector remains central to climate action.