Pakistan faces existential threat from climate change

February 09, 2026 (MLN): Federal Minister for Finance and Revenue Muhammad Aurangzeb delivered a stark warning at the 4th Pakistan Climate Conference, declaring climate change an 'existential threat' to Pakistan's future.

He highlighted that the country is grappling with increasingly severe weather patterns, which are affecting its economic stability and growth potential..

Speaking via video link during an official business visit to Saudi Arabia, Minister Aurangzeb outlined Pakistan's comprehensive climate financing strategy and available funding mechanisms totaling over $20 billion to combat the escalating climate crisis.

The Finance Minister highlighted the dramatic escalation in climate-related disasters facing Pakistan, comparing the devastating 2022 floods with current conditions in 2025.

"Climate change is real for Pakistan," Aurangzeb emphasized. "The catastrophic 2022 floods caused massive damage in terms of GDP, affecting one major river, one large province, and one smaller province.

Fast forward to 2025, and we now see three rivers impacted with almost every single province affected. The frequency and intensity are clearly on the rise."

The minister stressed that this environmental challenge transcends immediate concerns of economic recovery, stabilization, and growth, instead representing a fundamental barrier to Pakistan realizing its full potential as a nation.

"This is not just about recovery or growth this is about our ability to realize our potential as a country. The only way this is possible is if we negotiate this challenge with a real sense of emergency," the Finance Minister stated, with cabinet colleagues present virtually during the address.

Minister Aurangzeb highlighted several critical building blocks that Pakistan has already established to tackle climate challenges.

These include the National Adaptation Plan, a comprehensive strategy for implementing climate adaptation measures, and the Climate Prosperity Plan, which links climate action with economic development.

Additionally, the Green Taxonomy, rolled out by the State Bank of Pakistan, provides guidance for sustainable finance, while the Country Climate Finance Strategy offers a coordinated approach to securing and deploying climate-related funding.

Minister Aurangzeb outlined the key funding sources available to support Pakistan’s climate resilience efforts, including the IMF Climate Resilience Facility and the World Bank Country Partnership Program.

He also highlighted the Asian Development Bank (ADB) Facilities, the Asian Infrastructure Investment Bank (AIIB), the Loss and Damage Fund, and the Green Climate Fund as important avenues for climate financing.

He acknowledged that while these resources represent significant commitments, challenges remain. "The issue is that some of these are grants and some are not yet operationalized," Aurangzeb noted, emphasizing the need for streamlined access to climate financing.

Minister Aurangzeb emphasized the critical role of private sector engagement in Pakistan's climate strategy, particularly in knowledge transfer and capacity building.

"The role of the private sector becomes critical in terms of knowledge sharing and thinking," the Finance Minister stated. "From my perspective, it's not only about funding it's about technical support, knowledge transfer, and capacity building for bankable investment projects that can mobilize the available funding."

The emphasis on 'bankable investment projects' underscores Pakistan's shift toward creating viable, sustainable climate initiatives that can attract both public and private investment while delivering measurable environmental and economic benefits.

The 4th Pakistan Climate Conference marks a pivotal moment in the nation's climate response strategy, with the Finance Ministry taking a leading role in coordinating financial mechanisms and private sector partnerships.

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