Climate poses economic risks: Experts

Climate change has transitioned from being a science-fiction concept to a harsh reality affecting the world from all angles. Unfortunately, a leadership crisis at the state level has left Pakistan among the top five most vulnerable places globally.

During the EcoSummit conference, organised by SEED Ventures in collaboration with The Express Tribune, industry leaders discussed the environmental challenges and their implications for Pakistan’s economy. Unilever Pakistan, Chairman & CEO, Amir Paracha warned that environmental threats, such as greenhouse gas emissions, could cause the country’s economy to lose 18-20% of its value by 2050, even though Pakistan contributes less than 1% to global warming.

It was highlighted that developed nations have often contributed to the problem rather than providing effective solutions. Despite making promises to mitigate the risks, these nations have taken little practical action to address the issue.

Getz Pharma, Managing Director and CEO, Khalid Mahmood pointed out the dangers posed by pollution in the air and water, as well as the presence of chemicals in contaminated foods, which contribute to life-threatening diseases.

SEED Ventures, CEO, Shaista Ayesha stressed the importance of educating children in schools and colleges about these challenges as the way forward in combating and triumphing over the climate crisis. She also highlighted the need for increased research and development (R&D) to identify alternative sustainable solutions that can facilitate growth.

Ayesha and Mahmood both suggested that the corporate sector take the lead in adopting alternative solutions to achieve sustainability in all aspects of life, as conventional remedies are insufficient in reducing droughts, cyclones, and other environmental disasters worldwide.

Paracha called for a change in mindset and lifestyle to successfully overcome the climate challenges. He noted that, like 65% of the global population, 51% of people in Pakistan acknowledge the presence and impact of climate change. He also highlighted the opportunities that arise from crises. He mentioned that challenges have prompted the indigenisation of raw materials, reducing the reliance on imports. Corporate entities in sectors such as soft drinks, food, energy, ice cream, and fast-moving consumer goods (FMCG) have partially recycled plastic products, replaced 400 million plastic straws annually with paper ones, and transitioned to renewable energy sources. These efforts aim to mitigate rising global temperatures and promote sustainability, he said.

The Unilever CEO emphasised that the corporate sector is using waste, including plastic and garbage, to produce recycled goods, transforming waste into treasure.

Reflecting on Pakistan’s progress from 2005 to 2023, Paracha noted that approximately 48 million people had risen above the poverty line. However, devastating floods in July-August 2022 reversed this progress, pushing 10 million people below the poverty line within just eight weeks. The floods submerged almost one-third of the nation, impacting 33 million people and claiming approximately 1,700 lives. The economic loss caused by the summer flash floods amounted to $30 billion.

During the conference, the event’s host, moderator, and journalist, Zarrar Khuhro shared a heartening example of school children aged 6-8 years who produced usable paper from chicken feathers. The children tackled the problems of excessive chicken waste and increased paper usage, which contributes to deforestation. This initiative was part of a competition among schools with monthly fees of Rs3,000 or less.

Participants highlighted the importance of the corporate sector passing on financial benefits to consumers, allowing them to purchase products produced through sustainable solutions and ensuring the long-lasting sustainability of these practices.

The Getz Pharma CEO reiterated that climate change is ultimately a leadership crisis. It is the responsibility of the state to devise plans and solutions and ensure their implementation, as individuals alone cannot address this monumental challenge. Mahmood emphasised the need for rulers to take ownership of the crisis instead of shifting blame to others.

He further noted that Pakistan’s forest cover has decreased from 25% in 1947 to a mere 2.5% today. Forests, along with the sea, play a crucial role in absorbing pollution. However, the release of untreated industrial and effluent water into rivers and seas, coupled with deforestation, has diminished their capacity to absorb pollutants. If this trend continues, their capacities will saturate, leading to catastrophic consequences.

The presence of industrial toxins and civic waste in drinking water, vegetables, and animals has contributed to a rise in cancer cases in Pakistan. Compared to smaller economies like Sri Lanka and Jordan, life expectancy in Pakistan is significantly lower. Smaller countries like Ghana prioritise treating effluent water before releasing it into the sea, he said.

Published in The Express Tribune, July 13^th, 2023.

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