Climate change is no longer a distant risk – it is our daily reality. The devastating floods of 2022 cost Pakistan nearly 5 percent of its GDP, claimed over 1,700 lives, and displaced almost 8 million people. The monsoon rains of 2025 have once again displaced families, disrupted industries, and caused over 660 deaths, nearly 935 injuries, with more than 200 still missing.
These disasters show that climate change is not waiting for us. While Pakistan contributes less than one percent of global emissions, it ranks among the most climate-vulnerable countries. This paradox – that those least responsible are most affected – underscores why urgent, collaborative action is essential.
It has been observed that the private sector, particularly OICCI member companies, have made remarkable strides in embracing sustainability. Across industries, businesses are reducing carbon footprints, investing in renewable energy, adopting water and waste management systems, and building resilient supply chains. These companies are proving that profitability and sustainability can go hand in hand. By embedding resilience into their operations, they are safeguarding both their businesses and Pakistan’s future.
The government, with support from development partners and donor agencies, has also taken important steps. Initiatives like the Delta Blue Carbon project and Recharge Pakistan show how restoring ecosystems can buffer climate shocks while sequestering carbon. Yet, these efforts remain limited in scale. What we need now is faster, deeper, and more collaborative action.
The recently launched OICCI 3rd Pakistan Climate Conference (PCC) report, based on the outcomes of the 3rd PCC held in January 2025, highlights both achievements and gaps. It identifies policy and financing barriers that continue to slow progress and calls for a shift from fragmented projects to a coordinated long-term strategy. To achieve real impact, Pakistan must unite government, business, development partners, climate experts and other key stakeholders around shared goals and measurable outcomes. Collaboration is the key to Pakistan’s resilience.
One critical area is climate finance. Pakistan faces an annual financing gap of $40–50 billion to address its climate needs. This cannot be bridged domestically. Global instruments exist – green bonds, sukuks, ESG-linked loans, and climate funds – but Pakistan must strengthen credibility to access them. Transparent ESG reporting aligned with international standards, a centralized emissions and ESG data portal, and stronger governance are vital for investor confidence. Without these, the door to climate finance will remain half open.
Policy reforms must also prioritize renewable energy integration. The power sector is one of Pakistan’s largest sources of emissions and inefficiencies. OICCI has consistently advocated for reforms such as power wheeling regulations and smart green grids, enabling industries to procure renewable energy directly. These measures cut costs, lower emissions, and boost export competitiveness. With the EU’s Carbon Border Adjustment Mechanism (CBAM) taking effect, industries must decarbonize quickly or risk losing key markets.
Innovation and partnerships are equally vital. Public–private partnerships must expand into disaster preparedness, regenerative agriculture, circular economy solutions, and community-based adaptation. The success of Delta Blue Carbon shows what can be achieved when trust and collaboration converge. These models must now be scaled and replicated across sectors for real transformation.
As highlighted during the launch of the OICCI PCC report, Scope 3 emissions are the real hotspot, often exceeding 70 percent of a company’s carbon footprint. Tackling them requires collaboration across supply chains, science-based targets, and transparent reporting aligned with global standards such as IFRS S1/S2.
Trusted data, skilled people, and systemic reforms are essential to unlocking sustainable finance. Pakistan is macro-bankable, but to convert finance into real resilience, we must better utilize existing budgets, attract blended capital, and channel funds into people-centered initiatives in energy, agriculture, circularity, and risk reduction.
Pakistan must also strengthen its voice in international climate negotiations. As the world prepares for COP30 in Brazil, we should approach not as petitioners but as equal partners. Pakistan must shift from a vulnerability narrative to one of investable opportunities, with its NDC serving as an investment map, showing where resources can flow and what outcomes they can deliver.
By leveraging niches such as Islamic finance and disaster-resilience solutions, and by cutting emissions while reducing costs across supply chains, Pakistan can ensure its exports remain competitive in a decarbonizing global market. This is how we move from asking for help to offering partnerships.
The private sector must be actively engaged in shaping national strategies, including NDC 3.0, so that a united and ambitious national voice will give Pakistan a stronger claim to climate finance, technology transfer, and global partnerships.
When reflecting on these challenges and opportunities, one truth stands out:
Pakistan’s path to resilience cannot be walked alone. Climate change does not recognize boundaries between government and business, or between one sector and another. Its impacts are shared, and so must be our response. For the private sector, this means investing in sustainable practices and reporting transparently.
For the government, it means enabling policies and accountability. For development partners, it means aligning support with Pakistan’s long-term priorities. For all of us, it means committing to a vision where climate resilience and sustainable growth go hand in hand.
The stakes could not be higher. Pakistan’s economy, its food and water security, its energy systems, and the well-being of its people all depend on the choices we make today. Despite the enormity of the challenge, there is reason for hope. The determination of OICCI members, the willingness of the government to engage, and growing public awareness suggest that the seeds of transformation have already been planted. What is needed is the collective will to nurture them into lasting change.
The measure of success will not be the number of reports written or conferences held, but the resilience of our communities, the sustainability of our industries, and the confidence of future generations that Pakistan can thrive in a changing climate. We owe it to ourselves, and to them, to act boldly, collaborate deeply, and sustain our efforts over the long term. Only then can we turn the tide on climate vulnerability and build a nation that is resilient – and prosperous – for generations to come.
(The writer is an analyst and research lead at the Overseas Investors Chamber of Commerce & Industry)
Copyright Business Recorder, 2025
The writer is an analyst and research lead at the Overseas Investors Chamber of Commerce & Industry