ISLAMABAD: Pakistan’s gross domestic product (GDP) could shrink by 21.1% by 2070 under a high-emission climate scenario, according to the Asian Development Bank’s (ADB) latest “Asia-Pacific Climate Report 2024: Catalyzing Finance and Policy Solutions.” The report highlights that climate change impacts could lead to a 17% GDP loss across Asia and the Pacific by 2070, with the region’s GDP losses potentially reaching 41% by the end of the century.
Pakistan, along with countries like Bangladesh, India, and Indonesia, is expected to experience the most severe economic impacts, driven by sea level rise, reduced labor productivity, and significant losses in climate-dependent sectors such as agriculture, forestry, and fisheries. Labour productivity in Pakistan could decrease GDP by 10.4% by 2070, while combined losses in natural resource sectors could contribute to a 12% GDP reduction.
ADB emphasizes that the poorest communities in the region are the most vulnerable, as they are likely to live in high-risk areas, rely on climate-sensitive livelihoods, and have limited adaptive capacity. The report calls for accelerated adaptation and increased climate mitigation, with annual investment needs for adaptation estimated at $102–$431 billion across Asia, compared to the $34 billion mobilized in 2021–2022.
Despite growing private sector interest in climate finance, challenges such as policy uncertainty, information gaps, and weak markets continue to limit funding flows.
Story by Tahir Amin
