Climate Finance: Is Pakistan Ready for the Next Monsoon Season?
Flood-affected communities highlight the urgent need for climate resilience in Pakistan.
Climate Finance remains central to Pakistan’s efforts to strengthen resilience against future floods, as experts warn that the country must focus on accountability and implementation rather than funding commitments alone.
Economic analyst and former FPCCI Secretary General Shahid Anwar said Pakistan has already paid a steep price for climate change. He noted that the devastating 2022 floods caused an estimated US$30 billion in economic losses and damages, affected nearly 33 million people, and created reconstruction needs exceeding US$16 billion, according to the Post-Disaster Needs Assessment.
Following the disaster, Pakistan secured international commitments of around US$10.9 billion under the Resilient Recovery, Rehabilitation and Reconstruction Framework (4RF). However, Anwar argued that the true measure of success lies in whether the funding reduces future risks, protects vulnerable communities and strengthens the country’s long-term economic resilience.
He stressed that Pakistan’s climate challenge is no longer about recognising the problem but about ensuring effective implementation, transparency and measurable outcomes.
Anwar called for a transparent climate finance tracking system that publicly reports funds received, projects completed, areas covered and the results achieved. He also urged authorities to develop a dynamic national flood risk map to identify vulnerable districts, critical infrastructure and key economic assets exposed to climate-related threats.
Pakistan-UK Ties: Aurangzeb, British High Commissioner Discuss Economic Reforms and Investment
He further recommended making climate risk assessments mandatory for major housing, commercial and infrastructure projects while shifting public investment from repeated post-disaster reconstruction towards long-term prevention and resilience.
The analyst also encouraged businesses, financial institutions and insurance companies to integrate climate risk assessments into their planning and develop strategies to reduce future exposure.
According to Anwar, floods have evolved beyond a disaster management issue and now represent a major fiscal, economic and development challenge that directly affects agriculture, exports, businesses and public finances.
He concluded that Pakistan’s climate governance will ultimately be judged by its ability to prevent avoidable losses before disasters strike and ensure that climate finance delivers lasting resilience rather than simply increasing spending.
