{"id":3136,"date":"2026-10-22T20:03:52","date_gmt":"2026-10-22T15:03:52","guid":{"rendered":"https:\/\/ipp-news.com\/?p=3136"},"modified":"2026-10-22T20:03:52","modified_gmt":"2026-10-22T15:03:52","slug":"the-climate-economy-nexus","status":"publish","type":"post","link":"https:\/\/ipp-news.com\/?p=3136","title":{"rendered":"The climate-economy nexus"},"content":{"rendered":"
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Climate change is no longer just an environmental problem for Pakistan; it is a growing threat to the country\u2019s economy. Floods destroy crops and roads, heatwaves reduce workers\u2019 productivity, and water shortages threaten farming and industry. These problems damage livelihoods, disrupt businesses, push up food prices and increase government spending on relief and reconstruction.<\/strong><\/p>\n

For a country already facing poverty, debt and limited financial resources, the cost of climate change can make economic recovery and development even more difficult. Therefore, Pakistan must treat climate change not only as an environmental issue but also as a major economic risk and make climate resilience a mandatory part of its economic planning and long-term development strategy.<\/p>\n

Pakistan is highly vulnerable because of its dependence on climate-sensitive agriculture, limited water resources and exposure to extreme weather. The scale of the problem became clear again in 2025, when severe monsoon floods affected all four provinces and Azad Jammu and Kashmir.<\/p>\n

According to Pakistan\u2019s Economic Survey 2025-26, the floods caused an estimated Rs822 billion in damage, claimed more than 1,039 lives and displaced over four million people. The disaster damaged homes, infrastructure and farmland, placing additional pressure on economic activity and government resources. These losses demonstrate how climate shocks can undermine development even when the economy is recovering from earlier difficulties.<\/p>\n

The 2022 floods provide another example of the economic consequences of extreme weather. The joint Post-Disaster Needs Assessment conducted by the Government of Pakistan, the World Bank, the Asian Development Bank, the United Nations and the European Union estimated damage at $14.9 billion and economic losses at $15.2 billion.<\/p>\n

Recovery and reconstruction needs were estimated at $16.3 billion. Approximately 33 million people were affected. The disaster destroyed homes, damaged roads and bridges, disrupted businesses and devastated agricultural communities, particularly in Sindh and Balochistan. The scale of the losses shows how a single disaster can reverse development gains and create substantial financial demands for a country with limited fiscal space.<\/p>\n

Agriculture is one of the sectors most exposed to climate risks. It provides livelihoods for millions of people and supplies raw materials to industries such as textiles and food processing. Floods can destroy standing crops, kill livestock and prevent farmers from accessing markets.<\/p>\n

The 2025 floods inundated approximately 2.2 million acres of crops, according to figures reported in the International Monetary Fund\u2019s assessment of Pakistan. The Food and Agriculture Organisation subsequently mapped 14,498 square kilometres of flooded agricultural land across Punjab, Sindh and Khyber-Pakhtunkhwa. Rice was the most affected crop in its assessment, followed by cotton. These losses can reduce the income of the farmers, raise production costs and create shortages for businesses that depend on agricultural supplies.<\/p>\n

Extreme heat, irregular rainfall and drought create additional difficulties. High temperatures can reduce wheat yields, particularly during grain development, while unpredictable rainfall makes planting and harvesting more uncertain. Drought can increase irrigation costs and threaten livestock. Small farmers are especially vulnerable because they often lack savings, insurance and affordable credit. Following a poor harvest, a family may borrow money, sell livestock or reduce spending on education and healthcare. Repeated climate shocks can deepen rural poverty and weaken the ability of households to recover.<\/p>\n

Similarly, water scarcity is another major threat. Pakistan relies heavily on the Indus River system for irrigation, drinking water and economic activity. However, population growth, inefficient irrigation, groundwater depletion and changing rainfall patterns are putting pressure on available supplies.<\/p>\n

The country faces the difficult combination of destructive floods during some periods and water shortages during others. Better storage, drainage, rainwater harvesting and efficient irrigation could help manage these competing risks. Drip irrigation and sprinkler systems may reduce water wastage, where they are affordable and appropriate, while drought-resistant crop varieties can help farmers adapt.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Climate change is no longer just an environmental problem for Pakistan; it is a growing threat to the country\u2019s economy. Floods destroy crops and roads, heatwaves reduce workers\u2019 productivity, and water shortages threaten farming and industry. These problems damage livelihoods, disrupt businesses, push up food prices and increase government spending on relief and reconstruction. For a country already facing poverty, debt and limited financial resources, the cost of climate change can make economic recovery and development even more difficult. Therefore, Pakistan must treat climate change not only as an environmental…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[],"class_list":["post-3136","post","type-post","status-publish","format-standard","hentry","category-english"],"gutentor_comment":0,"_links":{"self":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/posts\/3136","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3136"}],"version-history":[{"count":0,"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/posts\/3136\/revisions"}],"wp:attachment":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3136"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3136"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3136"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}