Pakistan - a nation of breathtaking landscapes and diverse ecosystems - now finds itself struggling with a crisis it did little to create. Climate change, largely an issue of the global world and industrialized nations, has turned Pakistan into the frontline state in the battle for survival for the environment.
Torrential floods, melting glaciers, and rising temperatures have left the country vulnerable, exposing its population of over 240 million to natural disasters that disrupt livelihoods, decimate infrastructure, and threaten future generations.
Yet, in the midst of this turmoil lies a silver lining: international climate finance. The global commitment to support vulnerable countries in their fight against climate change can give Pakistan an opportunity to convert adversity into strength.
Access to the billions of dollars through multilateral funds, donor pledges, and private investments will pave a path toward resilience and sustainable growth for Pakistan. But it needs more than just access-it demands strategy, vision, and action.
Crisis in numbers
The warning signs are no longer subtle. In 2022, catastrophic floods submerged one-third of the country, displacing millions and causing damages worth over $30 billion. The devastation wasn’t just financial—it was personal. Entire communities were uprooted, livelihoods were destroyed, and the country’s already fragile economy was pushed to its limits
.Meanwhile, water scarcity looms as another existential threat. By 2025, Pakistan could face absolute water scarcity, with per capita water availability already below 860 cubic meters in 2023. Agricultural productivity, the backbone of Pakistan’s economy, is in decline as erratic weather patterns disrupt planting and harvesting cycles.
These challenges underscore an urgent need for resources—both financial and technical—to adapt to a changing climate. This is where international climate financing comes into play. This is the lifeline of international climate financing.
Imagine a stream of funding flowing from the world's wealthiest nations, designed to help vulnerable countries like Pakistan not just survive but thrive. This is the core of international climate financing, a promise made during the Paris Agreement of 2015. Wealthy countries promised to provide $100 billion annually for climate adaptation and mitigation in developing nations. Though the progress has been slower than expected, funds like the Green Climate Fund (GCF), Global Environment Facility (GEF), and Climate Investment Funds (CIF) remain lifelines.
For Pakistan, these amounts are not just figures but a hope to rebuild houses, reconstruct ecosystems, and generate job opportunities in green industries. A brilliant example is the GCF-funded $37 million project focused on reducing risks from glacial lake outburst floods in northern Pakistan. Examples like these illustrate how aid from other countries can serve as an investment in action for the ground level.
What Pakistan can do?
Although Pakistan has successfully secured some climate financing, it still lags way behind its engagement needs. This is not about accessing money, but more about impact.
Pakistan must create a clear, compelling case for itself.First, the country needs to align its priorities with international funding opportunities. Institutions, such as the Green Climate Fund, are attracted to a project that integrates innovation into community impact.
Pakistan has immense opportunities in renewable energy, mostly in wind and solar; therefore, the country may use this as an opening for development. Imagine distant villages in Sindh powered by solar grids or wind turbines in Balochistan producing enough power to reduce reliance on fossil fuel.
Infrastructure is another area that needs attention. The floods of 2022 made it amply clear how fragile the roads, bridges, and houses of Pakistan were. The rebuilding of these with climate-resilient materials and designs will save lives and money in the long term.
The funds from the World Bank and Asian Development Bank (ADB), which have already promised billions for post-flood recovery, can be drawn upon for such transformative projects.
Lesson and roadblocks
In the face of these challenges, there are success stories from other nations that Pakistan can learn from. Bangladesh, for instance, has turned its vulnerability into strength by focusing on community-based adaptation programs and securing over $2 billion in international climate funds. Its mangrove restoration projects not only shield coastal areas from cyclones but also provide livelihoods to local populations.
Similarly, Indonesia’s issuance of green sukuk bonds to fund renewable energy and sustainable forestry projects offers an innovative model for financing. With Pakistan’s Islamic finance market already well-established, green bonds could become a viable tool for mobilizing resources.But these examples also underpin a critical lesson: success is not about the money; it's about governance.
Transparency, accountability, and efficiency are non-negotiable when it comes to spending climate funds. Every dollar counts—whether it is building a dam, restoring a wetland, or training farmers in climate-smart agriculture.
Despite all this, Pakistan still faces serious challenges in securing and using international climate financing. Political instability often disrupts long-term planning, while governance challenges erode donor confidence. Corruption, inefficiency, and bureaucratic red tape have historically slowed the progress of climate initiatives.
Technical expertise is another limitation. Design and implementation of projects that qualify for international funds require specialists, from environmental scientists to project managers. In the absence of investment in capacity building, critical opportunities will be left at the table.So, where does Pakistan go from here? The answer lies in embracing a proactive and forward-thinking approach. This begins with the creation of a National Climate Financing Authority—a centralized body to coordinate funding applications, monitor project implementation, and ensure transparency. Such an institution could serve as a bridge between international donors and local communities, ensuring that funds reach those who need them most.
Collaboration is equally important. Regional partnerships, for example, on topics such as water resource management and disaster response, can lend more power to Pakistan in global climate negotiations. Multilateral ties and private investors can potentially open up new sources of funding for innovative projects.
Finally, Pakistan needs to transform its youth into change agents. Training programs, university partnerships, and public awareness campaigns can inspire a generation to take ownership of the country's climate future. Imagine a Pakistan where students design solar-powered irrigation systems, entrepreneurs launch green startups, and communities lead reforestation efforts.
Turning crisis into opportunity
Pakistan's climate story is one of contrasts-a nation both burdened by vulnerability and brimming with potential. International climate financing provides a unique opportunity to rewrite this narrative, transforming challenges into catalysts for growth and resilience.
But taking this opportunity requires more than financial resources. It calls for vision, leadership, and an unrelenting commitment to transparency and accountability. With the world looking toward a future more sustainable, Pakistan will be in a position to be an example for it can show that even during tough times, there's always hope, innovation, and a possible better tomorrow.
