Colossal loss

Pakistan is no stranger to climate disasters, including but not limited to floods, heatwaves and infrastructural damage. While it seems that citizens are left to fend for their livelihoods annually, the fourth Pakistan Climate Conference has revealed the extent of fiscal damage we are forced to bear. Pakistan is now losing close to 1% of its gross domestic product every year to climate-related disasters, and it's only projected to get worse.

The consequences of these disasters can never truly be accounted for. They include the tragic loss of lives, loss of livelihoods as well as the loss of education. Moreover, the social impact persists long after reparations have been made and reconstructions have been completed. With a worsening climate, the death toll and the fiscal burden are both steadily increasing.

According to Pakistan's climate commitments under Nationally Determined Contributions (NDCs) 3.0, the country has a target goal of reducing 50% emissions by 2035, requiring an investment of $565.7 billion. While on paper, the sum for restorative aid seems much larger than the cost in damages — around $4 billion — Pakistan's GDP is expected to decline by 18-20% by 2050. Therefore, what would have been a GDP of around $875 billion in 2050 according to 3% growth is estimated to be around $678.3 billion with the cost of climate change. And even then, the loss will only remain mounting.

Pakistan needs to rectify the cost before it turns all-consuming by leveraging private businesses to build stronger government relations for better access to sustainable resources. Businesses must also be incentivised to lower energy consumption, and the country should steadily move towards large-scale sustainable practices that are bound to produce long-term return on investment. Short-term disaster funding is usually debt-financed and worsens fiscal stress, while climate investment promises to raise tomorrow's GDP and can be organised and controlled per need.