Pakistan, despite being highly vulnerable to climate change, has significantly reduced its climate-related development spending for the fiscal year 2026-27. The federal government has allocated only Rs 2.4 billion for climate projects, a sharp decline from the Rs 6.4 billion earmarked five years ago. This reduction contrasts with neighboring countries like India, Bangladesh, and China, which are increasing investments in climate resilience and adaptation.
Countries in South Asia are ramping up investments in climate adaptation, renewable energy, and disaster resilience, while Pakistan’s climate-related spending sees a notable decrease. International assessments consistently rank Pakistan among the nations facing severe climate risks. The World Bank warns of rising temperatures, changing rainfall patterns, and water scarcity, all of which Pakistan is highly vulnerable to.
Pakistan faces a multitude of climate threats simultaneously, with accelerated glacier melting in the region raising concerns about the future of the Indus River system. The United Nations Development Programme (UNDP) has highlighted the risks of glacial lake outburst floods due to faster glacier melt. Additionally, the Pakistan Institute of Development Economics (PIDE) notes that climate change is already impacting agricultural productivity and food security in the country.
The dependence on the Indus Basin further exacerbates Pakistan’s climate vulnerability, as disruptions in the river system can have widespread economic and social consequences. In 2022, Pakistan experienced devastating floods affecting millions of people and causing significant economic losses. Despite this, neighboring countries are increasing their climate-related expenditures, emphasizing a growing divergence in policy priorities.
