Abstract

This paper examines the strategy of Pakistan on climate change for its implications on achieving sustainable economic development. It accentuates complex relationships between climate-related disasters and government policies and their economic consequences for the period 2010-2023. The evidence shows an increasing discrepancy between financial losses resulting from climate-related disasters and the finances committed to climate initiatives by the government. Despite the ever-increasing climate change budget, from $300 million in 2010 to $620 million in 2023, it remains insufficient to compensate for the growing economic losses due to recurrent flooding and severe drought situations. The major findings are significant economic detriments in the agricultural sector, marked by a falling GDP share from 20.5% in 2010 to only 16.0% in 2023. This corresponds to a rise in climate variability. If this trend accelerates, it worsens food security problems and rural poverty and therefore warrants acceleration of a shift towards adaptive strategies. These, coupled with financial constraints, make any national initiatives very weak due to the disjointed implementation of the climate policies across the provinces of Pakistan. The report calls for improved policy coherence, incorporating climate considerations into broader economic strategies, and stepping up investments in sustainable technologies and renewable energy sources. In addition, it also highlights that there is a case for exploiting international mechanisms of climate finance and negotiating global agreements like the Paris Accord. Proposed strategies include strengthening institutional frameworks with participatory approaches, enhancing inter-sectoral coordination, and implementing measures at the community level so as to build resilience in attaining sustainable economic development. The study aims at in-depth insights into how Pakistan can realign its climate policies with the imperatives of economic development so as to avoid the negative impacts of climate change and assure long-term economic stability.